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Can you explain this IRS question I have?

Asked by Dutchess_III (46830points) March 11th, 2015

I’m going to talk to our tax preparer about this, but thought maybe some of you could give me some insight.

So I get a statement every month. I originally owed $3745. Had fees and interest of $94 and $100, so the balance was then $3939.

I’ve made 8 payments of between the minimum of $80 up to $200, but the remaining balance isn’t going down.

I sat on hold for an hour yesterday. When I finally talked to an agent he said my balance is now $3937. I paid $200 last month and it only reduced my balance by $2.00.

They kept talking about fines and interest. He told me they accrue at a rate of about $20 a month.
So I said, “OK, if I pay $80 then $60 of it should go to the principal.”
He said, “No it all goes to the principal.”
“So why isn’t my balance going down?”
He said something about going to the IRS website to see how the
“congressionally approved” fees and interest works.

WTH is going on? It’s the same bill, same amounts, every month.

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