Will the IRS let me do this?

Question

Okay, so I owed $601.00 last year to the IRS. I entered a payment plan where I was paying $50.00 a month. Everything was going well, but then I had a new Student Loan to start paying on. I kind of let the IRS Payments go. Now, I got my taxes done this year and I owe $2437.00. I want to pay these amounts, but I am a little scared. If I write them a letter of apology and explain to them what happened and tell them that I want to pay it, and maybe send like $100.00 or something with it, do you think they will give me a second chance? I know there will be fees and penalties, but do you think they would let me have another chance to pay?

Answer 1

I would definitely call them and find out if there is any way that they would let you add what you owe this year onto the remaining balance of last year's taxes. Your monthly payment would probably have to be larger since you are adding on such a significant amount. Here's an article that also talks about what may happen if you miss payments on your Installment Agreement with the IRS:

http://www.irs.gov/businesses/small/article/0,,id=156483,00.html

I hope they don't penalize you since you did not call right away and explain your situation as to why you were missing payments. Hopefully they will work out another payment plan for you this year too. Good luck!

EDIT: I just found this link on the IRS website that says you can combine last year's agreement with on for this year! But it does say this "If an installment agreement is modified, reinstated or restructured, a $45 user fee may be charged."


Here's the link:
http://www.irs.gov/businesses/small/article/0,,id=156495,00.html

Answer 2

They may allow you to include the new amount with what you owe. But you are going to be required to adjust your W4 or start making estimated payments (if your income is from self employment) to have the correct amount withheld so that you do not owe again next year. Failure to make the correction to the cause of you owing 2 years in a row can result in the IRS ordering your employer to LOCK IN the withholding rate, which would be single with -0- exemptions, and a fine against you for 500.00. You need to contact the IRS immediately, since you stated that you stopped making payments to the IRS , you no longer have a payment arrangement with them, let them know that you owe again for 2006 and the total amount that you owe on the new return.

1-800-829-1040

Answer 3

If you haven't got the money to pay it all, they'll most likely set up a payment plan for you. Obviously since you owe a lot more, you'll have to pay more than $50 a month this time.

You might as well contact them to talk about this - otherwise they'll be contacting YOU.

Answer 4

they will probably offer to do an "Offer in Compromise" in which they will settle the account for a certain amount if you can send it in right away. They probably won't enter into another installment agreement with you but suggest an offer in compromise and be ready with a dollar amount to offer a hundred more than your original balance. They sometimes do this to make small debts go away!

Answer 5

yes,, Jo thinks they will give you a chance to pay.
but,, Jo thinks IRS wants to hear no explanation from you,, they just want you to pay your taxes. (in full asap)