Would it be cheaper to borrow (bank loan) than pay the irs installment agreement?

IRS is charging 3% interest plus 3% late payment penalty. Amortization of any loan is based on how big your payments are. If you have a low payment installment agreement they will cheerfully accept extra payments.

Unless your credit is in the stellar regions -- over 750 FICO with a very strong debt to income ratio -- you will likely pay less in interest and penalties on an IRS payment plan than on a personal loan. The current interest rate is 3% and the penalty rate is as low as another 3% if you have a payment plan that allows the IRS to take the payments directly from your bank account. That's effectively a 6% APR and few folks can get an unsecured loan at that low of a rate.

On the other hand, if you default on a personal loan while your credit will take a hit, nobody will be slapping a levy on your wages. A levy can take MUCH more of your income than a garnishment can unless your income is VERY low. Either way your credit is messed up but the ramifications are not nearly as onerous with a defaulted bank loan than a defaulted payment plan with the IRS.

It costs about $100 to get an installment agreement from the IRS (some exceptions). You can also pay more than the minimum and get a reduction. The IRS interest rate is 6% right now.

If you can get a loan with no application fee and the interest rate is no more than the IRS, that is cheaper. Otherwise the IRS is cheaper.

Pay Irs Installment

Just be sure you actually pay the installment agreement on time.

1. The interest rate changes by quarter, but it's been 3-4% for quite a while.

2. The FTP rate is initially 3% (1/4 of 1% per month) but will jump to 12% if you default and reinstate.

Even then, 16% can be less than what you would pay to use a credit card to pay it.

I believe the interest rate charged by IRS is less

if you want to pay this off earlier, you might increase the payment amount you pay IRS

a personal loan at a bank is probably higher interest rate than IRS charges

And you do not know how to make the payment online to them at this time in your life for this time and purpose. Pay Your Tax Bill www.irs.gov/Payments/Make-a-Payment There may be a reinstatement fee if your agreement goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, contact the IRS immediately. The IRS will generally not take enforced collection actions: Pay at least your minimum monthly payment when it's due (direct debit or payroll deductions make this easy); Include your name, address, SSN, daytime phone number, tax year and return type on your payment; www.irs.gov/Individuals/Payment-Plans,... Hope that you find the above enclosed information useful. 05/16/2013

The interest charged by the IRS is generally much lower than what be charged on a personal loan if you even could get a personal loan. Banks generally don't do personal loans any longer.

the IRS charges a late fee for every month you have a balance and they charge a half percent a month interest on the unpaid balance. but that is a lot less than getting a loan to pay your taxes.

if you happen to talk to the right person at the IRS, they will set up a payment plan to suit your needs

without having to pay the fee to set up the payment plan. even if you don't set up a plan, the IRS will take anything you send them without coming after you. you just need to make sure what you send is more than the penalty and interest charges, or you aren't getting anywhere.

Not a credit card loan OK only when you could qualify to get a low interest loan rate for this purpose and time in your life from a bank may be at that time. BUT you will really have to be very careful when you do this at this time in your life OK.

Hope that you find the above enclosed information useful. 08/20/2013