I owe 35k to irs..?

Question

i owe 35k to irs..17k for 06..and 18k for 07..i already have a installment plan to pay for my 06 tax..can i ask them to roll over my 07 debt of 18k into that payment plan too? i dont have money to pay them in full..can someone please help..what are my options?

Answer 1

The 2007 balance will default the agreement. As Wartz noted, you'll probably have to give the IRS a financial statement. This means that you will have to pay the amount it shows, which may or may not be less than what you're paying now. A lien will also have to be filed which will impact your credit rating. You can avoid this by paying the debt down to below $25,000--but if you're going to owe big for 2008 as well, there's probably not much point in doing that.

Answer 2

You have defaulted on your agreement by not making your current tax payments.  My crystal ball tells me that you have also not paid the first two installments of your 2008 tax so probably really owe about $9K more than you stated and the meter keeps running.  

You are automatically entitled to an installment agreement if you owe less than $25,000.  Now that you have gone over that figure you will have to provide comprehensive financial information and be subject to IRS allowable expense standards that are more stringent than the do it yourself deal you get at the lower dollar level.  You are going to need to completely reorder your lifestyle to deal with the problem and keep it from getting worse.  

As an enrolled agent, I am licensed to represent people with your kind of problem.  If you would like information outside this forum, you can email me through my profile.

Answer 3

Per your installment agreement (if you read yours) it states that any future balances must be paid in full.

But IRS does allow you to add the new liability but with the amount you owe you will need to provide Form 433-F Collection Information Statement and you will need to increase your monthly payment.  (download Form 433-F from the IRS website and have it completed when you call IRS you will be to answer all their questions or they will even allow you to fax it to them while you stay on the line with them and then your request can be processed.

contact IRS at 1-800-829-7650 for more information and assistance.

Good luck, IRS will also send a Withholding compliance notice to your employer, which your employer will have to lockin you withhold at the rate IRS request.