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CFEPro789
CFEPro789, Accountant
Category: Tax
Satisfied Customers: 543
Experience:  Former IRS Agent, Master of Accountancy, Tax Return Preparer
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I have a portion of my Federal tax due for 2012 tax year. I

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I have a portion of my Federal tax due for 2012 tax year. I have not as yet received the notice of the balance due along with any penalty. How can I find out the exact balance due along with any penalty?

jgdarragh2285 :

Hi my name is XXXXX XXXXX I will be helping you today with your tax question. When did you file your tax return?

Customer:

Hi, I filed my tax return in May/June 2013 (after getting an extension in April 2013) but did not pay full amount due

jgdarragh2285 :

Okay that is very strange that they have yet to contact you with your balance due letter. You have two options to determine your balance. First you can call the IRS individual number at 1800.829.1040. Your second option is to go into an IRS taxpayer service center in person, but if you do be prepared to wait a bit to meet with somebody. There is definitely something up if they havent sent you the letter yet. Either it got lost in the mail, they have a bad address for you, or they never processed the return. Once a return is posted with a balance a letter is computer generated and sent immediately. If you can tell me the balance of your unpaid tax I can give you a round about figure as to what you will owe them.

Customer:

unpaid tax balance is usd 17k

jgdarragh2285 :

Okay, the failure to pay penalty is 1/2 percent per month calculated from April 15th forward (tax due on 4/15 even if extension filed), so your failure to pay penalty is $595 and the interest you owe is about $396 so your total owed as of right now is $17,995

jgdarragh2285 :

Because your balance is under $25,000 you will qualify for a streamline payment plan, so if you called up the IRS tomorrow and requested a payment plan they will grant it as long as all your other returns are filed, they wont file a tax lien and they wont require any financial information as long as your plan full pays within 72 months.

Customer:

okay thanks!\

jgdarragh2285 :

So if you cant pay in full, you can ask them to pay as little as $275/month and they will grant it for you right then on the phone

CFEPro789 and 7 other Tax Specialists are ready to help you
Customer: replied 3 years ago.

If I agree a payment plan over 72 months what will be penalty and interest charged during that period on outstanding balance? Will the penalty and interest be charged on just the original balance or also on the cumulative penalty and interest? Is it best to call them/go seem them or is there a website where I can apply for a payment plan as well and make a payment online? thank you

if you get a payment plan interest will be about 4 percent a year and failure to pay penalty is 1/2 a percent each month. it will accrue on the unpaid tax only. your payments will go to tax first and once that is paid then penalties and interest. you can make payments electronically if you go to eftps.gov and create an account, they will send you a pin itll take a few weeks. any other online payment sites will charge you a fee for processing your payment so use that one if any. you can mail the irs the payment plan request but it is better to call because you want to confirm they have your return, you shouldve received a letter by now so you want to talk to a person and make sure everything is ok
CFEPro789 and 7 other Tax Specialists are ready to help you
Hello,

Just wanted to followup and see how everything went with the IRS. Were they able to confirm that they received your return and give you your balance?
Customer: replied 3 years ago.

tried to call but estimated wait time on call was 30 minutes! is there a "good" time to call them when the wait time is less?

surprisingly, 30 minutes isnt too bad considering it is generally an hour wait. if you call first thing in the morning at 8am that is your best bet. i suggest calling and waiting on hold, put the phone on speaker and go about your day.