Attached is a link breaking down the calculations used by the IRS to calculate payments and interest. Some of the penalties offset other ones, further complicating the system.
It is important to note on payment plans that if too little is paid, it may take a very long time to pay the amount owed back since IRS interest is not waived for a payment plan. A good rule of thumb is not to set up a payment plan for more than 3 years. If it takes more than 3 years to pay it back, you will pay too much interest and it really isn’t worth it.
https://www.irs.gov/businesses/small-businesses-self-employed/understanding-penalties-and-interest
Penalties can be waived and often are, but it’s a good idea to work with a professional when negotiating these. I specialize in looking at your information and asking the right questions when communicating with the IRS to maximize the amount that can be waived or forgiven and get you the best opportunity for this.
Please contact Fleig Financials LLC at 585 353-8096 with any questions.
June 22, 2020
Laura Fleig
www.fleigfinancialsllc.com
