What if someone can't pay the amount on their 1040?

Question

How does this work? As an example, if the return indcates a tax due of $50,000, and you only send in $10,000 with the return, what happens next? Does the IRS then send you a bill, where you can then request an Installment plan? What's the best way to do this?

Thanks for the help!!!

Answer 1

YES, you can request an installment plan, generally over three years. I have no idea what the dollar amount is. If you owe that much, you SERIOUSLY need to contact a lawyer if you cannot pay. A tax attorney might be able to help you to even lower the dollar amount and settle for pennies on the dollar. I am NOT a tax expert, so that's why I say to consult a tax attorney. I have made an installment agreement with the IRS before, but I believe you can only do this yourself if you owe less than $10,000. If you owe $50,000 I would seek the advice of a tax attorney ASAP! Before the IRS comes after you.

Answer 2

You should definitely get in touch with an IRS agent (maybe through an accountant) to set up a payment schedule. Letting it go will only create more interest to accrue on the balance due.

Answer 3

Installment plans are available. The link below is to the IRS site covering installment plans.

Answer 4

Yes, the IRS will contact you to set up a payment plan.

Answer 5

Visit this IRS link, as it gives you a lot of info about installment agreements, including which forms to use. http://www.irs.gov/faqs/faq-kw93.html.

Answer 6

you can make payment arrangements with the IRS

Answer 7

i believe they will put you on a payment plan