I am a sef employed messenger, I am filing my taxes late in july, I tried to use e-file, it shows I owed $1350

Question

My question is;

can I make a partial payments, I do not have $1350, if I make $600 now with 1040 what the IRS do?

Answer 1

Pay as much as you can with the return. If you can pay the balance within 4 months of getting the balance due notice, you'll avoid the installment agreement user fee.

Answer 2

Yep, send you a bill.  As long as you keep in communication with them and send them money regularly.  They will not serve you with liens, judgements or prison.  Actually the best people to owe money to as long as you are working with them.   It's when you turn a deaf ear that they can get nasty.   Real nasty!

Answer 3

If you don't pay in full, IRS will send you a bill.

Answer 4

Yes, you can make partial payment and the sooner the better.  You have been incurring a Late Filing Penalty AND a Late Paying Penalty since April 15.  Both are based on the amount you owe and are both based on how many months late.  So if you pay what you can ASAP, you stop the Late Filing Penalty from adding up, and you cut the monthly late payment penalty in half.

Just send the $600 in with your return.  You could include the IRS form to set up installment payments but that really doesn't accomplish anything.  The IRS will send you a bill including penalties.  In with that bill will be that same installment setup form.  So just fill it out and tell them how much you can pay per month.

The good news this year is that you have a stimulus check coming once you file your 2007 taxes and they will apply that money to your balance due - at least $300.  But give that some time.

You have learned that since you don't have an employer withholding taxes for you, that you have to pay them on your own.  If you are still self-employed,  you need to educate your self on the topic of quarterly estimated payment or you will have another kind of penalty to worry about too - underwithholding penalty.  A good starting point would be to download Form 1040-ES from www.irs.gov and look through the instructions.

Answer 5

They'll send you a bill for the rest, and if you can't pay it all at once, will set up a payment plan for you.

If you are still self employed, you should be making quarterly estimated payments, or you'll pay additional penalties along with the tax you owe.

Answer 6

Read about self employed taxes: http://taxipay.blogspot.com/2008/04/tax-...

Answer 7

The IRS will send you a bill.  You will have to pay penalties and interest, so you should pay it off as quickly as you can.

If you filed a self-employed return by yourself, and now you owe, why not have that return reviewed by an experienced preparer to see if your taxes can be amended and reduced?  There may be deductions you missed.