I owe about $1000.00 in fed taxes due in a couple of days (15th) Any thougts on my options. Does anybody know what kind of interest/penalties they charge if you make payments. All I saw on their site was that it might be cheaper to get a bank loan. Do they report it to the credit bureaus?
I know they take credit cards. This may be a stupid question, given the nature of this board, but is that an option for you?
I think the current interest rate is around 8% plus a little fee to set up an installment agreement. Make sure you file by the 15th, whether you pay or not. There is an extra penalty for filing late. The IRS is extraordinarily easy to work with if you need time to pay.
Thats good to know. I couldn't find any reference there that they accept credit cards. Even so, my lowest rate CC is 9.9%. I think I would rather pay IRS 8% but that would depend on if they report to the bureaus or not.
www.officialpayments.com is the third party agency that allows you to charge your taxes. They charge a percentage (I think 2.5% but I'm not sure) to make a profit for themselves and because the government isn't willing to pay a merchant fee. You will be ok asking for an installment agreement with the IRS. As long as you keep to your end of it they will not file a lien (thus triggering an entry on your credit reports).
the APR is 7%. i am still paying taxes owed from 1996. i called just 3 weeks ago to confirm. i would not use the "pay by credit card service". there are some good reasons why in a previous post http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&pgnum=2&postid=163448#post163448 just my 2 cents
Excellent article!!! That answered a lot of my questions. Although I do have plent of available credit to cover it I think I will go with payments to IRS. The interest is less plus debt ratio is an issue with me and if it doesn't show up on my credit reports than that is more available credit showing.
