Can you pay in taxes the following year??

Question

I was self employed for a while in 2006. I kept all of my receipts for all expenses in a folder. Time to file, can't find that foler. So now I have about $15,000 in untaxed income and no reciepts to backup my expenses. I'm looking at paying in somewhere around $3,000. I don't have $3,000 to give them. With all of my expenses and other exemptions, I was expecting to pay about $500. What can I do, if anything, to pay it?

Answer 1

You really only need the receipts if you are audited.

Estimate your expenses and be conservative.

You can pay off your tax bill over time but the IRS will charge interest.

Answer 2

Have you included all out-of-pocket expenses?

There is a Sec 179 expense deduction for certain assets bought and placed into service in 2006. Did you take depreciation expense into consideration?

Don't forget you can deduct your health insurance premiums in full on the face of your Form 1040.

Consider setting up a SEP retirement plan. You can contribute and get a tax deduction for your contributions. Or you may be able to get a tax deduction for a contribution to a traditional IRA. You have until the filing date of your tax return (including extensions) to open up either of these accounts and make a contribution for 2006.

Answer 3

Go to your local IRS office and talk to them or you can file for an extension to your return. Just fyi if you are due a refund you have 3 years to claim it.