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Tax returns done -- no money to pay

A friend of mine has his federal income tax returns completed and he owes about $1,500 to the IRS. But, he does not have the $1,500 that he needs to pay them. He did his State return and owed about $70, but he was able to pay that so he sent that in with the payment.

For his federal return, my guess would be that he should just file his tax return without the payment and then expect that the IRS will send him something saying how much he owes, what the interest and/or penalties will be etc. But, I have no idea if that is the correct way to do it.

He has a low income and virtually no assets and he just recently applied for social services benefits, so he probably would need to do some kind of payment plan to even pay the $1,500 that he owes.

Is there something specific that he should do now to request a payment plan or whatever rather than just sending in his federal return with no payment at all?

Thanks.

Reply to
Jake29
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is a great reference for your friend. He can request a payment plan via form 9465 for this amount, and the plan is approved automatically.

Reply to
JoeTaxpayer

Reply to
Alan

Didn't that 120-day option used to be posted at the IRS web site? I was looking for it a few days ago and couldn't find it, but I did remember it from prior years being an option.

Reply to
Mark Bole

I saw it in one of their brochures. Other than that you just do a search at irs.gov on what if i can't pay my taxes. You get a reference to a short-term extension. However, you never get the phone number I listed.

Reply to
Alan

IRS Pub 4853.... it looks like a bookmark (2" x 8.5") brochure.

Reply to
Alan

Thanks Joe, Alan, and Mark.

I passed the information on to my friend. It turns out that he owes less than I thought -- a little less than $1,000. And, he said he can pay it off in less than 120 days. So, his plan is to call the IRS first at the number that you suggested and explain that he is filing his return and that will be able to pay the balance due is less than 120 days. He thinks he should be able to send in a partial payment with his return to reduce the amount that he will owe. Depending on what they say when he calls, he may attach a note with the return also explaining that he will pay the balance owed in less than 120 days.

I did some searching to see if I could find more information about the

120-day option and found a couple of links in addition to the one that Alan just posted (the "brochure"). One was the on the Form 9465 installment plan form (which my friend will not be using). It says on the form: "Caution: Do not file this form if you are currently making payments on an installment agreement or can pay your balance in full within 120 days. Instead, call 1-800-829-1040." The other link was at:
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. On that page, it says, "If you cannot pay in full immediately, the IRS offers additional time, up to 120 days, to pay in full. No fee will be charged for entering this type of arrangement, however, interest and any applicable penalties will continue to accrue until the liability is paid in full."
Reply to
Jake29

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