How understanding is the IRS with back payments???

Question

I haven't filed my taxes in the last 5 years... I was always accustomed to getting a refund but when I filed five years ago I ended up owing.. someone had advised me to claim 2 dependents that year because of my daughter but her dad ended up claiming her, not me, so claiming 2 dependents backfired. I was young and stupid and didn't make payment arrangements at the time like I should have. The next few years I put off changing how many dependents I claimed and the same thing happened each year. They've finally come after me and I'm terrified. The amount is now twice as much as it would have been ($2,772.79), which I don't protest to at all, but there's no way I can pay it one lump sum... I live paycheck to paycheck/no savings. I want to resolve this but am very worried about how understanding they'll be with payment arrangements in the end... the most I could make is $100/month but even that puts quite a strain on my finances. Will they force me to pay more than that?

Answer 1

all I have to say....

is good luck my friend.

the IRS aint no joke.

Answer 2

You say you haven't filed in 5 years, IRS will not grant an installment agreement without you being in full compliance, file all your tax returns, once all filed then request an installment agreement (form 9465 Installment Agreement Request) IRS charges $105.00 user Fee for IA that you mail in your payment or If you choose Direct Debit IA then the USER FEE IS $52.00.  IRS grants Installment Agreement and usually allow 60 months to pay.  $100 would be a good payment amount this the int/pen continue to accrue until the amount due is full paid.  

File all your taxes if you need w2 contact IRS at 1-800-829-0922 and they will send you w2's, and give you a date by when you should have all returns filed.

Good luck, Don't IGNORE IRS any longer.

Answer 3

Contact the IRS and see if you can work anything out.  Sometimes they will cut you some slack as long as they do not expect or see 'fraud' in what you have done.

But.. keep in mind that if they see you have the assets to pay the bill you will have an uphill road.

You may also wish to see a tax attorney on this..

Bottom line, if you work out some kind of fixed payment or schedule you may offset future interest (which, like the energizer bunny, just keeps on going and going and going..)

.

Answer 4

They'll set up a payment plan, and would be likely to accept $100 a month or maybe even less.  You'll pay interest until it's paid off.

Good luck

Answer 5

If you can pay the liability in full within five years, IRS will give you an installment agreement with no fuss.  $100 per month will do fine. Just call the number on your latest bill.

Answer 6

Work up a payment plan. They can continue adding penalties.

Answer 7

Call them and set up a payment plan. Tell them what you can afford each month. They're very understanding and will work with people.