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Old 01-23-2007, 10:50 AM
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What can i do if I owe taxes to IRS and cant pay?

I owe about $3,000 to the IRS due to some mix up at work that caused me to withhold less tax in 2006. I just found out I owe this huge amount and I dont have the money to pay.

I dont want to get in trouble with the IRS so pls help me out here. I am a single mom with limited resources. Tks..


Btw, a great forum TaxGuru,



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Old 01-24-2007, 02:25 AM
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Dear Sarah,

You are not alone in this situation. I would strongly advise you talk to a good CPA in your area and have him negotiate an installment agreement.

Alternatively, if you are resources are tight, write a nice letter to the IRS outlining your personal problems with cashflow, and they will enquire about your job, income and bank to verify your story.

After that, what they will do is to analyse your financial situation and propose to you a monthly repayment of your tax liability. Usually, they may offer you 6 months to pay off the balance, in certain circumstances they would work out a longer period. Try on your own first and see what you can do.

And, please let me know how it works out for you.



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Old 01-28-2007, 08:10 PM
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Thank you for getting back to me, and I am taking your advise and having a CPA handle this problem for me.

I have provided the CPA with my personal financial situation and he said it was smart of me to try and negogiate a payment plan with the IRS.

Thanks again!

PS Your site has improved remarkably since I first posted, I saw a lot of useful information and downloads too.



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