Form 1040-v - paying my tax to the IRS for $4.8K?
I just did my tax for 2007 at H&R block and I have $4,824 due to the IRS. This was because I was on a 1099 for 6 months, and then later became a W2. Is it possible that I can pay that that off $1,000 monthly by check? How would that work? I know I can write a check to the IRS for $4,824 in full, but how do I split the payment monthly for 5 months? I was on1099 because that was my probation period. I am currently working for the same company. So, if I want to pay monthly, I would have to incur interest? In that case, it would be cheaper for me to pay all at once in full right?
Public Comments
- 1. Send what you can. Anything still outstanding after 4/15 is subject to penalty and interest. 2. When the first bill comes, send more money. You can call at that point and request a 120 day extension.
- First, there is no such thing as an extension to pay the tax due. The extension only applies for extra time to file. Now, to the question. Yes you can get a payment plan. You stated that you wanted to pay by check; so, the cost of the payment plan would be $105. But, you would also have penalties and interest on the amount due. The penalty for paying late is 1/2% of the amount due per month or part of a month, capped at 6%. The current interest rate starting 4-1-08 is 6% compounded daily. There is something else in your question that raised my eyebrows. You say that you were paid on a 1099 for 6 months and, "then later became a W2". What you didn't say if it was for the same company doing the same job. The reason I bring this up is if this is the case then the company might have a problem that would work in your favor. A company is not legally allowed to have people doing the same job that they pay by different means. And, if you where a contract employee something had to change to make you regular employee, or you would be considered a regular employee from the start. Hope this helps
