If you owe the irs about 6,500 from 1099's then whats the interest etc,with them ?

Question

And do they right away,get into your bank accounts and stuff or do they wait and see if your gonna pay or not?or should i say how long before they attack your bank accounts?

Answer 1

there will be penalties and interest and the penalties alone can get to 25% quickly - contact them and work out a payment plan and remember in the future if you get paid as a1099 person and not as a weekly paycheck where they withhold taxes - you have to take care of your own taxes AND make QUARTERLY estimated tax payments to avoid penalties - see a CPA

Answer 2

If you have set up a payment plan and make all your payments on time, they aren't likely to attach assets like your bank account. If you haven't set up a payment plan, or if you don't make payments as promised, then they can and will take the whole amount you owe from your bank account if you have that much, or will clean out the account if it's less than what you owe

I believe their interest is running around 8%. There might be additional penalties accruing though, for underwithholding, not sending your quarterly payments to them in the first place.

Answer 3

If you have the ability to pay the balance due within three years, you will automatically be granted an installment agreement. Call the IRS phone number on your latest notice to set it up. If you do nothing, IRS will take the initiative and levy on your bank accounts or other income. Also make sure that you are paying your current year's tax as it accrues and not making the situation worse.

Answer 4

Don't assume the IRS will wait. By the time you receive notice that they are seizing your bank accounts, it may be too late to help yourself.

Have your situation reviewed by someone with the appropriate knowledge. Then set up a payment agreement with the IRS and stick to that agreement to avoid seizure of your assets.

Answer 5

The best bet is to file your taxes and to pay them what you can afford. They will charge you interest/penalties, but the rate will be about half of what you would incur if you pay the bill with VISA or whatever. They won't attach your property or your employment earnings unless it appears to them that you have no intention of paying them. They will be glad to work out a payment plan, provided that you stick to it.

Answer 6

dr83ms,
if u need real advice, Get a tax attorney and a good CPA. Get 2 more jobs, sell every thing of value not blood related. keep ur cash in cash save everything and when the bill comes DUE - pay it.