is not the Internal Revenue Service

Toll Free Phone

*****Our Philosophy******
How to Keep From Getting Ripped Off

Is This the Death of the Offer Program?

Taxpayer Advocate Slams IRS OIC Program

IRS Warning on Offer in Compromise Promoters

Stay Away from These Tax Resolution Firms

Respected Tax Resolution Firms

IRS Dumping Huge Number of Offers

Offer in Compromise

Free tax consultation

Offer Article for NAEA

IRS Enforcement Action Heats Up

eBay & Taxes

IRS Related Stress,
Don't Let it Destroy You

Can the IRS Collect Taxes Forever?

Steve Kassel in the Media

Who Should I Hire?

Shouldn't I Hire an Attorney?

Testimony on Capitol Hill

Payment Agreements

Can I File Bankruptcy?

IRS Tax Lien & Levy

I Haven't Filed

Can the IRS Take My Property?

Penalties & Interest

IRS Food & Clothing

IRS Housing & Utility Expenses

IRS Transportation Expenses

Download IRS Forms 
433-A & 433-B

Get Copy of Your Tax Return, Extension or Any Other Tax Form

General Tax Questions

Tax Links & Other Stuff

Maps & Directions to

Privacy Notice

Steve Kassel
in the spotlight:

Good Morning America
1999 Picture/Transcript

New York Times:
October 10, 1999
New York Times
July 20, 1999
New York Times
July 18, 1999
EA Journal
Nov-Dec, 1999
August 4, 1999

Meet the Staff of


Toll Free Phone

We're NOT the IRS, but we do help people with IRS tax problems
Call the IRS at 800.829.1040 IRS Tax Help, Internal Revenue Service Solutions

Are IRS payment agreements bad?

The most common way to settle an Internal Revenue Service tax liability is to pay the debt off through monthly installment payments. But, is that the best idea? It really depends on how much you owe and how much you are paying back each month. Remember, that penalties and interest continue to accrue even while you are on the payment agreement. Currently (as of April 1, 1999), the interest rate on taxes owed to the IRS is 8%. That amount fluctuates with general interest rates.

The only penalty that you'll be hit with after a payment agreement is in place is the Failure to Pay penalty. It ranges from .5% to 1% per month to a maximum of 25% of the tax due. Starting on January 1, 2000, the penalty will be cut in half *if* the return was filed on time and certain other conditions are met. However, even under the best circumstances, the rate of penalties and interest will be a combined 12% per year.

If you owe $10,000 and can afford to pay $150 per month, it will take 110 months (over 9 years) to get the taxes paid in full! While the $150 might seem like a large monthly payment, it barely touches the principal, resulting in that dreadfully long period to get the taxes paid off. Under new rules which just went into effect a few weeks ago, it is much easier to get a payment agreement approved. But, if it takes so long to get the taxes paid, an Offer in Compromise is often the better choice.