Owe over 45,000 from '05 and need advise
2007-02-03 15:44:46 · 5 answers · asked by Scott A 1 in Business & Finance ➔ Taxes ➔ United States
Your best bet is to file your taxes and NOT pay. The penalty for not paying is .5% interest a month on what you owe. However, if you DON'T file, the penalty is 5% per month! You may be able to get on an automatic installment plan, so make sure to call their toll-free number to ask the relevant questions. It's not like you're the first guy who couldn't pay, right?
2007-02-03 15:54:20 · answer #1 · answered by Steve 4 · 0⤊ 3⤋
what you need to do is contact the IRS and let them know your intentions. tell them you cannot pay in this amount all at once, but youd like to set up a payment plan, where you can make monthly payments, or have them directly debited from your bank account. the most important thing is that you communicate with them. they will work with you. if you keep ignoring them, interest and penalties will keep accruing and before you know it, there will be tax liens on your assets and your accounts may even be frozen.
trust me, you dont want to ignore this one. work something out, even if you can only make a small payment at a time. if they see that you are making an effort and keep current with your payments, they may even reduce some of the tax liability.
2007-02-04 00:00:15 · answer #2 · answered by tma 6 · 2⤊ 1⤋
Set up a payment plan, and make the payments on time. Given the income that you must have to owe that much for one year, and given the amount you owe, the payments won't be small.
2007-02-04 00:31:21 · answer #3 · answered by Judy 7 · 0⤊ 2⤋
Best way to keep them off your back is to communicate with them..tell them what you can afford to pay, and make timely payments.
Not paying ANYTHING tends to make them cranky.
I hear they also take credit cards now...
2007-02-03 23:48:47 · answer #4 · answered by Anonymous · 0⤊ 1⤋
wow....Well obviously $45,000 isnt something you can pull out of your pocket and pay them, simply because it is alot of money! And they want that money! You really cant get them off your back.....
....... my anwser would be GOOD LUCK! ..... I also have a friend in Canada.....He sais its very nice up there.... hint, hint
2007-02-03 23:53:21 · answer #5 · answered by kyle w 2 · 0⤊ 3⤋