Can you please help me, I was 1099 and not I am W-2. So as 1099 I did not have any taxes taken out so (according to Turbo tax) I owe $9,000. However Now I am W-2 and have a ton taken out each month, I was thinking I could not file this year and then file both next year and pay the difference. Is this wise? If not, any suggestions? I can't afford $9,000. As well, if I did a payment plan how do I set it up and how long is it amortized for...thanks so much for the advise/help
2007-04-09 10:31:50 · 5 answers · asked by roybfizbo 2 in Business & Finance ➔ Taxes ➔ United States
No. The best thing to do is to go ahead and file. Send what you can in with your return. The IRS will make arrangements with you, and you can advise them that part of your repayment plan is by your withholding this year. Remember, if you can afford to withhold so high, perhaps instead you can re-direct that to what you owe the IRS.
Your penalties and interest are accruing daily....if you could afford a loan to PIF the IRS, you will be better off all around.
It is never wise to ignore a debt that large, especially with the IRS.
http://www.irs.gov/efile/article/0,,id=151880,00.html
good luck & bless
2007-04-09 10:43:19 · answer #1 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 0⤋
There is a form on the irs.gov website you can complete for a payment plan. They will charge you interest and penalties. If you are doing your taxes yourself, are you sure you included all of your business expenses? Phone, mileage, supplies, uniforms, labor. You can take any deduction you want, you will only have to prove it if you get audited. I'm not encouraging you to take things you shouldn't but make sure you take all of your expenses.
2007-04-09 10:37:51 · answer #2 · answered by Justthefacts 2 · 0⤊ 0⤋
If you do not file this year you will still owe the $9,000, plus you will then owe penalties and interest.
2007-04-09 10:37:20 · answer #3 · answered by smartypants909 7 · 0⤊ 0⤋
File the return.
The failure to file and failure to pay penalties are very steep and will add a ton to the bill.
If you can not pay, enter in to an installment agreement with the IRS.
2007-04-09 10:35:41 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
you make very little sense. what is this "and not i am W-2" stuff? do you even know what a W-2 is? if not, you should probably have someone prepare your taxes, and if you really do owe $9000, file for an extention... asap
2007-04-09 10:39:01 · answer #5 · answered by Missy 2 · 0⤊ 2⤋