2007-03-11 09:18:02 · 5 answers · asked by Cesar G 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Can you pay it over time? Like in 2 years? Then submit a payment proposal to the IRS, and start making payments. There's a form, I forget the number. Then start making payments as if they had accepted the agreement.
If $40k is completely impossible, seek out an offer in compromise like the others mentioned.
By the way, file your return anyway, even if you can't pay. Penalties are far higher if you don't file, then if you file, but can't pay.
Now for my personal tirade. What the heck is up with you people? You obviously are making good moola, otherwise you wouldn't owe $40k. Why are so many people failing to make estimated tax payments, or at least put the money aside to pay the taxes. You know they are coming! Plan for it like you would your mortgage or any other necessity.
2007-03-11 11:08:37 · answer #1 · answered by Uncle Pennybags 7 · 3⤊ 0⤋
Assuming that you don't have any ability to get a personal loan, you're going to need to go to the IRS and claim undue hardship would occur if you paid back the full $40,000. You might be able to negotiate the amount down some, depending on what caused this tax bill (sometimes they're willing to negotiate the penalties and interest, but not the tax liability). Also, the IRS will set you up on a payment plan, but you should consider that only as a short term solution. Unless you specifically tell the IRS to apply your installment payments against the principal of the amount, you'll just keep paying and paying interest, virtually never paying off the loan.
2007-03-11 16:23:02 · answer #2 · answered by SuzeY 5 · 1⤊ 1⤋
If you can't come up with the $40,000 then you only have three choices:
Installment Agreement
currently not collectable
offer in compromise
It all depends on your monthly income vs expenses and equity in assets. All of the information needed to resolve your problem is available through the IRS website. If you can read and want to do this on your own, all of the information is there. There is no need to pay a company or a CPA thousands to do this for you. Go to IRS.gov and download the 433-A (financial statement). This is what the IRS uses to determine someones ability to pay.
2007-03-12 14:31:24 · answer #3 · answered by richard3770 1 · 0⤊ 0⤋
YOU NEED A CPA TO DO AN "OFFER IN COMPRISE."
NEVER HAVE A FIRM THAT SPECIALIZES IN THESE
THAT ADVERTISE ON TV ETC. DO THIS FOR YOU.
THE IRS ONLY ACCEPTS 18% OF THESE OFFERS BY THIER OWN ADMISSION AND THESE ARE PREPARED BY CPA'S. THEY ARE EXPENSIVE. BE PREPARED TO SPEND 5-10 THOUSAND DOLLARS.
2007-03-11 16:25:46 · answer #4 · answered by charlotte q 2 · 1⤊ 0⤋
Get the hell out of USA.........Move to Panama.
I'm telling you, The IRS can make your life miserable.
2007-03-11 18:07:58 · answer #5 · answered by ewf20612 2 · 2⤊ 0⤋