Question

E-filed taxes in July. I owed, and was approved for a short term payment plan. But the IRS.gov STILL says my return has not been processed, anyone else with this issue?

Forum|Forum|5 years ago
November 9, 2020
1 reply
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My final payment is due tomorrow, but because the return has not yet been processed (even though according to TurboTax it was accepted back in July), I don't know how much I actually need to pay (including payment plan fees and such). I've tried calling the IRS to no avail, it simply says they have too many calls and can't take my call and then hangs up. I don't know what I should do. I don't want to get penalized for not paying by the due date, but the IRS has not even processed the return yet, apparently.

TurboTax Self Employed Online

Critter-3

Just make the last payment and when they get around to finally processing the return they will bill you for any penalties or interest they believe you owe. There's nothing you can do until they get their act together.

S

spencerbackmanAuthor

Thank you! I guess I'll just do that. 🙄

O

Opus 17

Employee

Interest is about 1/3% per month, and the penalty is 1/2% per month. I believe the penalty is half if you have an approved payment plan (i.e. 1/4% per month).

If you wait for a bill, there will be additional interest on the unpaid amount. For example, if your interest and penalties are $100 now, and it takes 6 months for the IRS to bill you, you would owe an additional $2 interest on the unpaid interest and penalties. That sounds stupid, but it's how it works. The penalty may stop if you pay the taxes in full but the interest accumulates by law until you pay it, even if you pay it late due to problems at the IRS. (On the other hand, you have the use of the money until then and could invest it, etc.)

Point is, the amount extra you may owe if you wait for the IRS to bill you won't be very much more than whatever you already owe, whereas if you try and make an extra overpayment, the IRS will eventually send you back the excess but there's no way of knowing how long it will take.