I was going through a rough financial period and blocked federal taxes from my check for a couple months and now im scared ill have to pay back a huge amount. I havent calculated what ill owe because im trying to avoid the shock of it =/ i know it will probably be around a thousand dollars and i know the IRS has a payment plan but im currently in a worse financial spot because im about to have a baby and i really cant afford another expense. I know its my fault but i dont know if i should wait to file until next year when i will get more because im claiming a child or just bite the bullet and file this year?
2007-03-11 06:57:33 · 6 answers · asked by g2makeit 1 in Business & Finance ➔ Taxes ➔ United States
Waiting until next year won't help. Your 2007 income will go on that return, not your 2006 income. And if you don't file for 2006, at some point the IRS will contact you and probably just send you a bill for what you owe, and by then you'll owe more, for penalties and interest.
You might as well get it over with, calculate your taxes and see how much you owe. It won't get better if you wait
Filing for an extension just gives you longer to file your return. The tax is still due April 17, so that won't really help you any.
2007-03-11 07:22:14 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
I am no expert, but did the same stupid thing! I went to H&R Block, the guy figured I will owe about $1,500 (ouch). You can set up a payment plan, a friend who did this in past year said she took two years to pay back what she owed. But, to buy six months, or even 12 months, you can FILE for an extension, but you must do it before April 15th, or actually 17th this year. You can then file for a second six month extension, but at that point you have to file your return and begin the payment plan. You cannot wait and just not file if you owe any amount for 2006. You will then be hit with high interest and penalty, don't even think about that. Take your W-2's now to Block or Jackson Hewitt and they will figure where you stand, and not charge for that! Don't punish yourself with worry! JL
2007-03-11 14:12:08 · answer #2 · answered by Impeachthemall! 1 · 0⤊ 0⤋
If you owe taxes and don't pay by April 15th you'll be charged a penalty. Better to find out now and make arrangements, rather than have a bigger shock later.
Don't forget that if you were having that rough of a time, that perhaps you have some deductible expenses that can be considered. Let a tax preparer do your taxes for you.
2007-03-11 14:02:00 · answer #3 · answered by Venita Peyton 6 · 1⤊ 0⤋
File now, failure to file by April 17th will result in a penalty for failure to file being charged.
The IRS will work with you on a feasible payment plan. get the return in, once you receieve notice of the balance due call them right away to make arrangements.
2007-03-11 14:02:36 · answer #4 · answered by Rob 7 · 1⤊ 0⤋
No you have to file or the penalties are worse! I just read about that on Yahoo home page! If you're on line check it out now!!
2007-03-11 14:05:32 · answer #5 · answered by Sunday P 5 · 0⤊ 0⤋
READ THIS ARTICLE ... IT'S REALLY HELPFUL
YAHOO: What if I Can't Pay My Taxes?
http://biz.yahoo.com/ap/070227/good_question.html?.v=1&.pf=taxes
2007-03-11 14:13:45 · answer #6 · answered by Anonymous · 0⤊ 1⤋