Hi, Let me be sure I understand what you are saying. You are saying that if I wait for the IRS to process my amended 1040X before paying, I could be waiting so long that additional interest will accrue, right?
This topic didn't get a reply for a while so I did call the IRS. They told me the problem with a payment plan is that I won't know the total number I owe before they process the return (due to unknown interest and penalties for a $2000 difference in what I paid for 2021 and what I owe). They said to send in the largest down payment I can afford and then wait for a letter from the IRS to instruct me.
However, I believe that the interest rate is lower once you make the payment plan. And I don't see why it would do any harm to set up a payment plan with a slightly smaller number than the total amount due... I'm sure they have a way to revise it and will send me a letter instructing me what to do.
I like your solution best because the interest rate is lower on the payment plan. Oh, another problem with the payment plan is that there's no way to indicate what return you are paying on. Could be 2021 or 2022 for all they know. I don't know if that's a problem.
Thanks.
