Interest and Penalties for IRS Payment Plan?

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- burt.demchick
  
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posted
8 years ago

Wed, Nov 25, 2015 7:01 AM

Hi Everyone,

I expect to owe a lot in taxes this coming April from stock I sold to make a down payment on a condo in 2015. The IRS offers a payment plan of up to 6 years but irs.gov does not say what interest rate and penalties they will charge.

Any idea what ballpark amounts we are talking about here? Any other options I should consider?

Thanks, Burt

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- paultry
  
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posted
8 years ago

Wed, Nov 25, 2015 3:05 PM

See IRM 5.14.1.2

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Also IRM 5.14.5.2

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- D. Stussy
  
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posted
8 years ago

Mon, Dec 7, 2015 10:47 PM

Any idea what ballpark amounts we are talking about here? Any other options I should consider? ============== The interest rate is set by statute. It is currently 3% and cannot go lower. It is likely to increase soon, at least to Fed. Chairwoman J. Yellen's "doublespeak." The penalty is also set by statute. It is fixed at 0.5% per month, capped at 25 months.