I owe taxes can't pay what I owe asked for tax extention in April?

Question

Does the IRS work with you with this.

Answer 1

Work with a tax advisor on this as the rules have changed. You have to make a deposit to the IRS (20%, I think, but may be wrong on that) with your proposal. The IRS is under no obligation to accept your proposal and they will NOT refund your deposit if they refuse it, although it will be applied against your debt with them.

They will work with you on it -- kinda sorta -- but if they think you're blowing smoke they'll slap you with liens and forced collection actions in a heartbeat.

BTW, the extension you filed was an extension of time to file your return, NOT to pay the taxes. The taxes were due and payable on April 17th this year. (April 15th was on a Saturday.)

Answer 2

An extension is just a longer time to FILE, not to pay. You'll owe interest back to the original due date.

But yes, they definitely work with you on a payment plan. Lots of people can't pay what they owe when it's due, so this isn't at all an unusual situation for the IRS people to deal with - it's pretty routine for them.

File as soon as you can. If you don't pay, they'll send you a letter telling you what to do from there, and how to contact them if you don't pay the full amount. Then they'll work with you from there.

Answer 3

Yes, the IRS will work with you. They want your tax money & you want to give it to them just not all in one sum. It's ok they will take regular monthly payments but don't skip any unless you have spoken with an agent & have a good reason for not being able to pay.

Answer 4

If you make a proposal on what you can actually send they will usually allow to make payments, but remember there will still be interest charges applied. Once again what you can actually send dont make an outrageous proposal that you cannot fufill

Answer 5

Of course they will. Call and set up a payment plan.

Make sure your withholding is adjusted for this year so you don't end up owing again.