Still paying on past taxes now owe again

Been there before and will be again this year. Contact the IRS well before 4-15 and set up the installment agreement. There should be no problem adding it to your existing plan. Just remember that you're dealing with the worlds worst debt collectors (they make ARM, LVNV and IL-legal Mediation look like girl scouts by comaparison). Miss a payment by a day and they're ready to levy bank accounts. I HATE THE IRS!

Thank you so much for the reply :D I feel better now!! I don't have to worry about missing a payment, I have it taken from my checking account. I may have to increase my payment though.

Was it difficult to get set up on the payment plan with them? I am looking at doing that this year, but from reading on their web site it looks like you have to pay up front to get on the payment plan. Can either of you give me more info on how it works?

no very easy actually. I have been in the same boat 2 years in a row. I called them and they set it up over the phone and then sent me a written copy of the arrangement.They add last years to the previous years and I just make a monthly payment right out of my checking account. In Jan however they never took out my payment, not sure what that is about.

Did they charge a fee to do the payment plan? I'm trying to decide whether to ask for the payment plan or to ask for the 120 day extension. I don't owe a lot ($600) but it's a LOT when you don't have it!

You get charge a set fee for the withdraws from your checking account and of course you are being charged interest. I would extend

That's what I'm thinking, but what if I don't have the money at the end of the extension? Can I do the payment plan then? I'm sure that I could make payment all along through the extension, but I dont' see me coming into a fortune between now and July/August. lol

I am sure that you can. We never had a problem with setting up payment plans with the IRS any time we owed. They do add interest and penelty charges

I know a couple years ago I talked to the IRS about a payment plan and the rep at that time encouraged me to find another option and use theirs as a last resort. So I figure it' won't be cheap, but right now I don't see too many other options. Well I have a month to think about it before I file, see what happens in that time.

I had to pay a $50 fee to set up the direct withdrawl. But otherwise I really don't think the interest amounts to much. Yes, they want you to get a loan to pay them, it saves them time and paperwork. But when your credit sucks you have no other way but to set up arrangements.

It isn't hard to set up arrangements. If you have someone else do your taxes you can ask for the form to fill out and send that right in with your taxes. I did that one year. But last year I did it on my own. I guess I am going to file my federal and then call them about what I owe this year and see if they can keep me on the same payments for awhile yet.

We just called them and was able to set things up over the phone.

Were the payments reasonable? I am not going to owe a large amount, but really can't afford to pay too much monthly either. Thanks for all the info - I was stressing out about it. Still have to worry about what I owe the state - hopefully they will also do a payment plan.

We paid $50 a month and more if we had it, but the arrangements were for $50 a month. If you owe state, call them and they will probably set up a payment plan for you also.

You don't have to set up an automatic pay from your checking about to pay your taxes. You can use the EFTPS website to make your monthly paymens. You just have to be sure that you enter the correct tax year you are paying on because the website is set up automatically for the current year. If you are paying taxes for 2008 when you go into the EFTPS website you will automatically see 2009. Make sure you change the year to 2008. You have to get a username and a password. It is very simple and it gets taken out of your checking account in 1 day or 2.