I just found out I owe roughly between $9,000 to $11,000 in state and federal income taxes for 2006 from a failed business venture. I checked this with an accountant, and I definitely owe the taxes. The company already filed it's return and my K-1, showing I had the income, so the IRS theoretically knows about it. I'm 24, have no assets or property, already have $2,000 in credit card debt, and have been unemployed for over seven months. I'm starting a job next month that will pay me $1,900 a month, so I was excited to get back on my feet. But I'm worried that paying off the IRS debt in installments will wreck me and ruin any chances I have to save up.
1) If I set up a payment arrangement, how much should I expect to pay per month, and for how long?
2)I haven't filed my return yet (got extension). How long b4 IRS comes after me?
3)What happens (realistically) if I ignore it? Could I claim Chapter 7 to erase it (making only $30,000 a year)?
I really need realistic advice here.Thanks!
2007-08-12
20:25:05
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6 answers
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asked by
Markarian
2
in
United States