I have a friend who failed to set aside money for quarterly tax payments on her spousal support last year (2015). The total IRS debt due is approximately $8,500. What payment options are available to her that would not negatively impact her credit, OTHER THAN paying in full? If her income is close to her living expenses, what does the IRS like to see in terms of a proposed payment plan? ($/month x months)
Also - on an $8,500 debt are interest and penalties as a % likely to be higher than say a low interest loan from a Credit Union or USAA?
Thanks in advance for any help on options! I do understand that legally it is NOT tax advice. :) Just looking for direction and options on what you would do.
Thank you for reaching out in Community. I would highly recommend to speak with an experienced tax advisor – they will know since they have experience with how the IRS operates.
Also, I will have a bank team member reach out to you in regards to the interest rate. Thank you again.