Level 6

Solved

Payment Options

Forum|Forum|3 years ago
April 5, 2023
6 replies
39 views

Good morning,

Curious if anyone has experience with larger payment options with the IRS? I have clients who will need to remit 32k but are asking me if they can make three payments instead of setting up a monthly arrangement? (April, July, Oct).

Thanks everyone!! 😎

ProSeries Basic

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Best answer by dkh

I'd have them file an extension. Pay what they can with the extension. When they have the money to pay the balance due, file and pay with the return. I think you'll find the penalties and interest are less.

GodFather

Intuit Community Champion

Some of my colleagues have suggested waiting for the IRS to notify you about the amount due, in lieu of preparing form 9465. They indicate the IRS will notify your client if payment of the amount due is not made with the return, kind of like an invoice being sent. Obviously, penalties and interest will still apply but your client will not be on a set payment arrangement. Once that "invoice" is received, your client can pay what they are able to pay. Assuming it is not the full amount, the IRS will once again invoice your client...and so on. I don't have personal experience with this but several colleagues swear by it.

SensibleandHourlyAuthor

Level 6

Thank you, everyone! I don't think they are quite savvy enough for IRS Direct Pay but will offer it as a solution, as well as waiting on the invoicing option after they make their first payment. As far as paying it all in full, no they don't have it, and yes, they should have saved money from their income. However, they didn't think much of it was taxable. Long story. 😉

Just-Lisa-Now-

Intuit Community Champion

Direct Pay is easier than paying a bill online, you dont need a log in or password, just your personal info and banking info.

If they can pay it off in less than 120 days, DONT apply for a payment plan, its a waste of money (they charge a set up fee), just get it paid off through DirectPay before August.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

PATAX

Level 12

Best option is for them to pay the entire amount in full and on time. They made the money, now it is time to pay the tax. Why didn't they save the money to pay the tax? Or can they come up with the money now and they're just making excuses?

R

rcooley25

Level 7

I have had a few eople in the last couple of weeks who are faced with this same problem.

In a lot of cases it is because they simply bleeped up.

Thewy are full of excuses.

PATAX

Level 12

@rcooley25 👍Where were you yesterday? We had a whole post about the apparent disappearance of your previous "communion post". Go take a look.

Just-Lisa-Now-

Intuit Community Champion

They can use IRS DirectPay and pay however much they want.

Penalties and Interest will start to accrue after the due date though.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

dkhAnswer

Level 15

I'd have them file an extension. Pay what they can with the extension. When they have the money to pay the balance due, file and pay with the return. I think you'll find the penalties and interest are less.

rbynaker

Level 13

I agree with dkh. If they can pay everything off by the extended deadline I wouldn't fool with an installment plan. I'd suggest they make an extension payment on IRS Direct Pay, then make Balance Due payments as they get the money in (interest runs until the payment is made so the sooner the better). Once the tax is paid off, file the return and the IRS will send them a bill for the interest & late payment penalties.

Or if they move to CA before filing they'll have a disaster zip code and the IRS may just ignore the interest.

T

taxes96786

Level 8

Yes if they get an installment agreement set up with IRS. Interest will apply.

BobKamman

Level 15

It's all your fault because you should only accept clients who are perfect. However, this is an opportunity for them to get a credit card that offers them 100,000 free miles if they charge $30,000 in the next three months. Pay the taxes with the card -- sure, it costs 1.8%, but that's $540 for a lie-flat seat to Rome or Athens.

SensibleandHourlyAuthor

Level 6

HI Bob,

Super idea!

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