[Nick]

I didn’t pay attention last year and having to pay a pretty decent tax bill. Anyone ever do a payment plan? Looking to spread it out a bit. Maybe 3 months?

Is that legal? Penalties ? I was warned last year by our accountant but I didn’t listen.

I did my own taxes this year and he was right!

[Bill]

If you can’t pay in full, you can propose a payment plan. Elon is in the process of laying off half the staff though, so you aren’t going to get a response anytime soon.

Like maybe not this year. If it’s only going to take you 3 months, you’ll have it paid off before anyone looks at your account.

Technically, they can impose fees and interest, but there is a decent chance they just ignore it.

[Jennie]

If they’re going to cruelly decimate the federal workforce in order to give themselves a tax break, I think we should get one too.

Not paying this year. Thanks DOGE.

[Chelsea]

Last time I looked, the late filing penalty was 3% per month and the late payment penalty was 1% per month.

Whatever you do, make sure you don’t get anxious and fail to file.

1% per month is a lot more reasonable than 4%.

[Anthony]

The failure-to-pay penalty is 0.5% per month (or part of month) plus you are looking at 7% interest this quarter. Interest is redetermined each quarter.

If you get an installment agreement, the failure-to-pay penalty is cut in half to 0.25% per month (or part of month) but the interest remains the same.

Many accountants don’t even bother warning their clients about things like this.

The fact the he/she cared is worth its weight in gold. Be careful trying to DIY these things.

No professional is going to be perfect.

The tax code is way too complex to master, and each state has its own tax code.

[Lacey]

Can you open up a 0% promotional APR credit card with a sign up bonus (either cash back or travel points, whichever flavor suites you best) — pay the IRS in full now, and then pay the CC off before the promotion ends.

Even if you incur a 3% cc processing fee, I think that’s still cheaper than penalties and interest that will be assessed for not paying in full on time.

Plus, it’d be way less hassle than trying to deal with the IRS with setting up a payment plan — good luck getting a human on the phone.

[Author]

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