My son is self employed, and confided he's stressed about being behind in paying income tax. I think he had an extention already,and he hasn't told me how much he owes to the IRS. This news surprised me because it's not like him at all (to owe). Does anybody here know anything about whether the IRS lets you make payments or works with you on this? Or have suggestions?
What to do when you owe the IRS a lot?
By starling02 - Posted on November 28th, 2007
The IRS has district agents for just this sort of thing. They definitely accept payments. I'd suggest going to them before they come to you, because if you ignore them, they'll garnish any money they can find. If you're open and honest, they can be very helpful.
I made payments before..this would be the best way to resolve this...ignoring it won't be a good idea. I agree with what suzanne says.
The IRS isnt as scary as they use to be. They have actual human beings working for them now. If your courteous and honest with them they can be helpful. If you lie or are nasty, well, they can be nasty too.
Did your son have an accountant prepare his taxes, or H&R block? While Block is good, I wouldnt go to them for anything complicated as many of their preparers are not experienced and may miss deductions. I strongly recommend having a good accountant take a look at the return.
Either way, do call the IRS and get a payment plan in place and look at estimates for this year. If there is a problem with the return, you can amend it and the payment plan as well.
Offer in compromise information. http://www.irs.gov/businesses/small/article/0,,id=109630,00.html
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Dottie
starling - the IRS has been very reasonable anytime I've dealt with them. But I'm sure your son has heard some of the same horror stories I have. So now that he's not done everything right - he's probably very concerned (afraid?).
I'd just tell him that he can make the call, tell them he has a problem and ask for help getting it straightened out. Then stop talking and see what they offer.
IF he gets a nasty person, then he has a problem, but not yet.
My Mom's a cpa. She's said many times that you have to pay your taxes and talk to the IRS if there is a problem. The way I understand it is they give you alot of leeway until they file on you. Then it's over.