What will happen to me? filed irs amended form now i owe 381.00, how long do i have to pay this?

Question

I filed my amended return and now i owe 381.00 . State 32.00. My husband took money 500.00 out of a ira and he did work for a township for one week. I know you have three years to file an amended return, but what if you owe? Sent out 100.00 and return. that's all i had . 2007 w-2.

Answer 1

The IRS expects payment now, so the sooner you can pay it off, the sooner they will get off your back, and the less interest and penalty you will have to pay.

That said, most likely the IRS will just send you letters asking you for payment and updating the amount you owe with the additional penalty and interest amounts.  If you keep sending regular payments, (monthly or every two weeks) they will probably leave you alone if you pay it off by December.  Just don't ignore the letter they are sending you - read them, send a payment and if the letters start getting threatening, then give them a call.

They don't haul people off to jail until they owe $30,000 or so I have heard...  

They do have a way to pay via credit card, but that will cost more than the penalty and interest the IRS will charge.

Answer 2

When you get the next bill calculate when you think you can pay it totally off.

The IRS *will* grant a 120-day extension to pay (taking you to November) before demanding that you either pay or set up a payment plan.  Since the payment plan has a set up fee of $105 (or $43 if you are deemed low income), if you can pay by November anyway, just do the extension.  (You call and ask.)

Some people don't even call until the get the CP504.  They just send what they can with each demand letter.

Answer 3

If you owed money as a result of the amendment and did not pay you are subject to penalty and interest until it is paid.

Answer 4

They'll send you a bill for the rest, with a "pay by" date on it.  If you can't pay by then they'll set up a payment plan, but there's a fee for setting it up so you'd be wise to try and find the money somewhere.

Answer 5

file the amended return and since you owe $381 do you send the what you can afford and then request an extension to pay by either 30 days, 60 days, 90 days or 120 days.  Interest and penalties will continue to accrue until you pay the amount you owe in full.  When you are ready to pay call 1-800-829-0922 to request the pay off amount.

If you request an installment agreement you will be charge a User Fee of $105.00.

Answer 6

If the IRS owes you money, it doesn't matter if you file late or amend your return later.  But if you owe money after the April 15 deadline, you should include payment when you file (and they would just tell you how much penalty/interest).  If you do not pay it then, interest keeps adding on.

You should really calculate your taxes early, to give you time to make sure they are done right.  Then if refund, file early.  If you owe, put off filing until near April 15.