if you owe 2,400.00 to the IRS and another 3,000.00 of a school loan plus 200.00 in

[rufus20126]

interests every year? (every year after). I pay 75.00 a month and that only pays the fees, not the principle. My husband and I are with diabetes and lots of Dr. and Prescription bills. My husband sent the IRS and letter explaining our situation upon paying the 75.00 month and they sent a letter back saying "they can not reduce any of the charges until the taxes are payed in full" (WHAT?).
They make it impossible to try, you would think they would want there money and if we die they get nothing..its like lone sharks..what to do?

 

[CathiK]

Sounds like you mishandled money. You could have a little bit more taken from your paychecks. You wont miss a little there and it will add up.You can cut some unnecessary spending. Cable and cell phones are not necessary.

 

[ataxlady]

When you owe the IRS, you owe not only the tax, but penalties and interest. After the tax is paid, the IRS ****may**** waive the penalties. They won't waive interest.

I think you are misreading the monthly statement. The penalty is .005 per month (2400 *.005 = $12) unless you've already missed payments, then it doubles ($24). The interest rate is currently 5% per year. (2400 * .05 /12 = $10) That adds up to $34 which is less than $75. (In reality, all money is applied to the tax debt first as it lowers the interest and penalties, but you do have traction as the payments are more than it's goint up each month).