“#1 Set up a payment plan. As i understand it, I would be charged around 5% interest plus some fees. What I dont understand is how they would charge me. Would it be 5% of 5000 ....$250 . All together?? or Every month im charged 5% on the balance?”--->I guess basically, it is up to you;however, you can make monthly payments through an installment agreement if you're not financially able to pay your tax debt immediately. However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full. Before you apply you need to file all required tax returns; consider other sources ,loan or credit card to pay your tax debt in full to save money; determine the largest monthly payment you can make ,$25 minimum; and know that your future refunds will be applied to your tax debt until it is paid in full.The IRS would not automatically grant an installment agreement, you would need to provide Form 433-F Collection Information Statement for Individuals, and if you are a business then you would provide Form 433-B Collection Information Statement for Businesses. IRS would review you financial Statement and If you are able to get an equity loan or pay down the balance owed then IRS would work with you at a monthly payment, IRS doesn't take into consideration any credit card payments you pay each month. IRS would go by your mortgage loan, auto payment, utility bill, home phone bill or business phone bill etc. IRS would leave you so much money to live off each month to get groceries and pay bills the rest they would request you send it to them.
Please visit the IRS website:
http://www.irs.gov/individuals/artic...0.html]Payment Plans, Installment Agreements
; #2 Refinance my house; #3 Borrow from Granny; #4 Move to Costa Rica?”------>It depends on your personal choice.
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