I got a 1099, out of the blue, and extremely late from a past employer and have no money to pay taxes on it for the current season- I know I can file for an extension, but have heard that would mean I still have to pay 90% of the amount. My past employer sent this extremely late, what can I do to delay payment?
2007-03-15 04:28:59 · 10 answers · asked by SEM guy 1 in Business & Finance ➔ Taxes ➔ United States
You must file an amended return and pay the additional tax by April 17, 2007. If you do it any later than that, there will be penalties and interest for late payment of taxes.
If you haven't filed your return yet you can file for an extension of time to file the return but this does NOT exend the due date for the payment of any tax due. You must include a sufficient payment with the extension to cover your tax liability or you will face penalties and interest for late payment of taxes.
BTW, don't blame the payer for this. You are required to keep accurate financial records throughout the year. You should not depend upon the receipt of any 1099 forms to prepare your tax return.
You are also required to make quarterly estimated tax payments using Form 1040ES. Taxes are due when the income is earned, NOTon the filing deadline.
2007-03-15 04:34:08 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You can delay the payment, but expect to pay penalties and interest for late payment and late filing.
Just because your employer sent a 1099 late, does not give you cause to send in the payment late.
At time of filing an extension which is by the normal due date of a return, which is April 15th or actually April 17th this year, you are required to pay not 90% of the tax due - but 100% of the tax due. An extension is an extension to file,
not to pay.
Since you cannot afford to pay the additional tax at the time of filing an extension, put in what you can afford, even if its only $ 10.00. On the
extension where it says total tax liability, put in the total of your federal
withholdings plus $ 10.00. Where it says total payments, put in just your federal withholdings. The difference is the amount you will pay with the extension.
The more you can afford to pay with the extension, the less your penalties and interest will be after you file. Penalties and interest are calculated from
April 15th to the date your payment is received.
As an alternative, consider redoing your tax return by including the additional 1099. Whatever the additional tax is that you cannot afford to pay, enclose
an "installment agreement request" with the return. The IRS can give you time to pay your liability - maybe, small monthly payments that you can afford to pay.
2007-03-15 12:38:00 · answer #2 · answered by bold4bs 4 · 0⤊ 0⤋
There's nothing you can really do except file the return showing the income. If you don't have the money, the IRS will set up a payment plan. You'll pay interest on it.
The form was received late - but you're responsible for keeping records that would let you know your total income, whether you received the 1099 on time, late, or not at all.
2007-03-15 23:40:59 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
If you have already filed the tax return on the information then you have met the deadline and then file an amendment to the return and pay to tax that is due on that 1099 later. But it would be better to file that form by 8/31/07.
If you have not filed as yet then you are correct that you will have to pay the 90% due.
2007-03-15 11:37:41 · answer #4 · answered by Aliz 6 · 0⤊ 0⤋
a filing update for 2005 would require sending in an amended return.
If it is for 2006 and you already filed, you need to file an amended return for 2006.
If you used Turbotax, you can redo the return and submit as amended it will fill out the appropriate forms.
If you are required to pay and can't you have to make arrangements with the IRS to direct deposit payments over time.
The liability is on you not the former employer.
2007-03-15 11:54:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Nothing. There is nothing you can do to delay payment. If you do not pay, you will owe interest and penalties. Filing an extension will not help.
Since you cannot pay, file the return on time. At least you will not have a failure to file penalty making your situation worse.
2007-03-15 11:35:10 · answer #6 · answered by ninasgramma 7 · 0⤊ 1⤋
Go to IRS.GOV and get the forms to file for an extension, or an amended Tax Return if you already filed one for 2006.
2007-03-15 11:33:31 · answer #7 · answered by robert.zvonar 1 · 0⤊ 1⤋
Contact the IRS to make a payment plan that would be acceptable to both, while filing an extension.
2007-03-15 12:13:49 · answer #8 · answered by Sgt 524 5 · 0⤊ 2⤋
It's never a good idea to pay the IRS late.
2007-03-15 11:39:08 · answer #9 · answered by spacebuff2001 3 · 0⤊ 0⤋
....
2007-03-15 11:31:43 · answer #10 · answered by Betty 2 · 0⤊ 1⤋