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    Fullspan's Avatar
    Fullspan Posts: 16, Reputation: 1
    New Member
    		  
    #1

    Feb 17, 2008, 09:26 AM
    Tax payments
    HI
    I have question regarding my taxes. Actually there were some inconsistencies last year with my payrolls and now I have to pay some taxes to IRS. Federal taxes are around 2400 $ and state taxes are around 900$ that I need to pay this year. I can't pay that much money at once.
    Can I pay in installments? How do I do that? How do they decide interest rate?
    Please help me.
    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 29, 2008, 02:36 PM
    Recommend you PAY the state and set up a payment plan with the IRS. They willcharge about $70 to set up the plan, then you pay it offin onthly payments just like a car loan.

    They will charge about 8% annually in interest.

    The state will probably also set up a payment plan, but paying off $900 over time is not worth the effort In my opinion.
    Fullspan's Avatar
    Fullspan Posts: 16, Reputation: 1
    New Member
    		  
    #3

    Feb 29, 2008, 06:09 PM
    Thanks Atlantis.. I will do the same as you said. I will pay off state Tax but go with installment with Federal.
    Really appreciate your response.
    Thanks
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