2007-02-09 07:46:21 · 12 answers · asked by Tim 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Call the IRS number on the tax form and work out a payment plan; they will try and work with you, but get them BEFORE the taxes are late.
2007-02-09 07:50:23 · answer #1 · answered by wizjp 7 · 0⤊ 0⤋
You will need to fill out a Schedule C and deduct any expenses against that 4888. If you have no expenses you will owe $691 in self employment tax and $0 in income tax. Self employment tax is the social security and medicare payments that weren't paid through payroll deductions. The only way you can lower that $691 is to lower your net profit on that 1099 income and you do that by deducting expenses on Schedule C. You can request an installement agreement from the IRS to make payments monthly if needed. Penalties and interest accrue until it's paid in full. If you don't file and pay they will catch up with you. If you don't make attempts to pay they can levy your bank account (essentially any time you deposit any money they'll take it). There is some good news though. If you keep your earned income over $3000 (the net profit on your Schedule C) then you can qualify for the stimulus rebate. You must have filed a return to receive this. You would be limited to $300 but that can be applied to your balance.
2016-05-24 02:17:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
File your return on time anyway - otherwise you'll owe additional amounts for penalties. The IRS will set up a payment plan for you to pay off what you owe. Be sure to keep current with those payments. And make sure that enough is taken out for 2007 so you don't wind up in this same fix next year.
2007-02-09 07:50:57 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
The IRS will work out a payment plan. Of course they will charge penalty and interest.
2007-02-09 07:55:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The IRS will start charging you interest at the rate of 10%.
Eventually they will garnish your paychecks and bank accounts.
Pay now or pay later!
2007-02-09 07:49:59 · answer #5 · answered by charlotte q 2 · 0⤊ 0⤋
Get and extention and then ask for a payment plan. It always works for me!! But, whatever you decide, do not, and I repeat, do not avoid filing because Uncle Sam will either get you now or later but he will get you.
2007-02-09 07:51:57 · answer #6 · answered by Resse 2 · 1⤊ 0⤋
What ever you do, don't run from it. Just contact the IRS and they will make arrangements for you to make payments based on what you can afford.
2007-02-09 07:54:48 · answer #7 · answered by Aunt Bee 6 · 1⤊ 0⤋
You can call IRS and ask for a monthly installment.
2007-02-09 07:55:35 · answer #8 · answered by Mrs Apple 6 · 0⤊ 0⤋
They garnish your wages at work. depending what you owe, they can come after any assests that you may have.
2007-02-09 07:49:56 · answer #9 · answered by Isis 3 · 0⤊ 0⤋
interest baby and lots of it,,pay what you can,, i filed bankrupcty against the irs,, but it was 134,000 dollars,, yes they got rid of it
2007-02-09 10:11:24 · answer #10 · answered by Anonymous · 0⤊ 0⤋