Help! We owe on our taxes
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  1. #1

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    Default Help! We owe on our taxes

    For the first time ever we owe. I wasn't aware DH changed his forms from claiming "0" to "2" . He did it to bring home more money for bills but never said anything to me (*sigh*). Anyway we have been hit with payments to both the state and Federal Govt.

    Can anyone advise us on how to do this? Do we have to pay in one lump sum (don't have it) or can we make payments? How do others pay off unexpected taxes?

    TIA.

    New Here and appreciating any info.

    Thanks!

  2. #2

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    if you dont pay the full amount by the due date they will charge you interest on remaining unpaid balance. I dont know what the rate is.
    DO NOT mess with the IRS. they have real power and can ruin your life and even seize your assets, bank account.

    and more.

  3. #3

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    ps if my husband did that I'd be furious with him.

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    Registered User bee9984's Avatar
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    We owe as well but I am in Canada so I am not sure how it works in the States. I feel your pain though.

    I would call them first thing tomorrow to find out exactly what you can do, it will give you a peace of mind.

    Let us know how it goes or maybe someone here can give you more information

  6. #5

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    You can, very easily, make payment arrangements with the IRS. I know because I have made payment arrangements myself. They will charge you interest, but it's less than most credit cards. Don't panic if you owe, you will be able to pay them out. They are just like any other creditor, if you keep in touch with them they will work with you. Just call and tell them you are going to owe, and they will send you the right form to fill out. Good luck and don't worry! Don't forget to have hubby change his W-2's.

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    Registered User dianne9106's Avatar
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    First - did you get a professional to prepare your taxes? Yes - it does cost a little money but in the long run it's worth it! This year is the first time we have ever had to pay - our situation changed, so we got a recommended professional. Yes H&R Block has it's place, as well as other tax services, but when you owe you need to get a certified public accountant's opinion on the best way to go about it. We were going to owe a great deal - if we had done it on our own, but our accountant showed us things like the interest on our home, certain moving and travel expenses to deduct - all legal. There are things that professional know that the computer program does not know or how to search for the answers.
    If you do owe- try to pay as much as possible up front to avoid the interest and possible penalties. You have a month - so perhaps you could have a yard sale, sell some stuff on eBay or something creative to raise the money - it's what we did. Good luck and feel your pain!
    Dianne

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    Registered User larabelle's Avatar
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    Yes you can make payments. Below is the information taken from the IRS website on how to do so.
    http://www.irs.gov/faqs/faq1-5.html

    Can I make installment payments on the amount I owe?

    Yes. If you cannot pay the full amount due as shown on your return, you can ask to make monthly installment payments. However, you will be charged a one time user fee of $105.00, as well as interest on any tax not paid by its due date, and you can be charged a late payment penalty unless you can show reasonable cause for not paying the tax by the due date (April 15, 2008 for individual income tax returns) even if your request to pay in installments is granted. Penalty will be charged until it reaches 25% of the original balance due and interest will be charged until the account is fully paid. Before requesting an installment agreement, you should consider less costly alternatives such as a bank loan.

    To request an installment agreement send Form 9465 (PDF), Installment Agreement Request, with your return or call (800) 829-1040. If you call you can also request a direct debit agreement or a payroll deduction agreement. You should receive a response within 30 days if you submit the form with your return. For more details on installment payments, refer to Tax Topic 202, What to do if You Can't Pay Your Tax, or Publication 594 (PDF), Understanding the Collection Process.

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    Registered User larabelle's Avatar
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    Quote Originally Posted by M55FF View Post
    DO NOT mess with the IRS. they have real power and can ruin your life and even seize your assets, bank account.
    I agree with this. I have had friends who made payment plans with the IRS and then did not honor the payment plans. The IRS took their entire paycheck until their balance owed was completely paid. DO NOT mess with the IRS!!!! They can take your entire paycheck and leave you with nothing.

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    Registered User Holly's Avatar
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    There was a mix up in 2005 and we have just got notice.
    We called them and they set us up with a payment plan.
    We will have it paid a lot sooner than the plan .
    They we're very easy for us to talk to]and get it straightened out.
    So take a deep breath and call them.

  11. #10

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    who said the IRS is like any other creditor? wow are you wrong on that. Most creditors have no where near the power the IRS does.

    To the woman who started this thread, make your husband get another job for awhile to quickly pay the IRS back.

  12. #11

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    who said the IRS is like any other creditor? wow are you wrong on that. Most creditors have no where near the power the IRS does.
    That was me that said the IRS is like other creditors in that if you contact them they will work with you. I know this from my own experience. I don't appreciate being called wrong when I have dealt with them myself and you apparently have not. I am trying to encourage OP and not worry her. If she makes arrangements and follows up with them she will not have a problem. Even if she contacts them if she has trouble paying they will work with her, problems come when you do not make payments and do not contact them.

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    Registered User StartingOver's Avatar
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    This is the first year we owe the IRS in 18yrs of marriage.

    But our tax preparer told us that the stimulus check we would have been getting in May or June will be directly applied to our outstanding IRS debt. That took care of a big chuck of it, and we still owe $400

    Good luck, it will work out, things always do. I have a co-worker who owed the IRS money last year, and she was able to make arrangements with them to pay them back. She said it was a lot easier that she thought it would be.

  14. #13

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    the scary thing about the IRS is, they will get there money no matter what, no matter how long it takes... you cannot file bankrupcy and even in the event of some major catastophe, they will take it from your assets in the event of your death. They are like a bad dream a person can't wake up from and will wait around tac-ing on interest all the while.
    Best to pay them off quickly...

    that is what I meant by they are not like any other creditor... also is the fact they can seize things like personal property to be sold to pay taxes.
    yeesh, like a legal loan shark.. only they won't shoot you to end it all.


  15. #14

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    Quote Originally Posted by M55FF View Post
    the scary thing about the IRS is, they will get there money no matter what, no matter how long it takes... you cannot file bankrupcy and even in the event of some major catastophe, they will take it from your assets in the event of your death. They are like a bad dream a person can't wake up from and will wait around tac-ing on interest all the while.
    Best to pay them off quickly...
    Very true, even if you decide not to pay them, they will get it one way or another.

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