I think you can request a payment plan online. It's easy, they're fair.

Anonymous wrote:Exact same thing happened to us. we took a personal loan to pay taxes, and made monthly payments to our credit union 3.5% for 24 months.

It happened to me, too. I paid it with a cash advance on a 0% credit card, and paid it off before the promotional rate ran out.

Let's just say the following year, we fixed our withholding!!

Remember they will charge you interest and penalties on anything you pay late.

It was very easy. Almost too easy. I expected a mess from the Feds. I asked for a payment plan and I pretty much set my own terms. I requested a small payment ($150) and paid more most months. And even that didn't freak them out.

I called and setup a payment plan for the $4000 I owed. I pay $400/month and am almost done.

Very nice.

Don't let this concern stop you from filing on time. File anyway, and pay what you can; otherwise, penalties and interest accrue and those can add a lot to what you owe.

Once you file (assuming it's correct), you at least fix what you owe. As PPs have said, they'll work with you on a plan to pay it back, or you can take a loan from other sources and pay that over time.

I had a similar situation my first year of being a 1099 employee. I didn't call the IRS, I just filed my return, and paid late. The penalty (for roughly the same owed amount) was about $100 if I recall correctly.

Side note, have you checked into putting some money into a SEP IRA? One year I owed something like $8K, but if I put $5K into my SEP, it lowered the amount of taxes to about $5K. I figured even though I was out $2K more up front, at least $3K ($5K total) was now going to me, instead of IRS.

Ditto on the above advice. I was surprised at how nice they were, and didn't have to "cancel Christmas" as we light too say (far too often) around my house.

I'm hoping NJ is the same, since I have to pay them soon too.

Exact same thing happened to us. we took a personal loan to pay taxes, and made monthly payments to our credit union 3.5% for 24 months.

it takes them a while to catch up with you.

Normally, they will send notices for a couple years before any tangible action. Not that you should ignore the notices but also don't panic.

You can charge the payment or you can set up the payment plan. They are suprisingly pretty flexible on those.

Call them and you can arrange a payment plan if necessary. We are currently paying $100 a month because of mistakes I made on our initial return. They were very nice and it hasn't been difficult or scary.

give me some insight on how it works. 2013 was my spouse's first year of being self-employed, and although we tried to be very careful about withholding, for various reasons it appears we will owe the IRS at least $5000 when it's all said and done. If we paid it immediately it would almost clean out our savings and we will have no way to replenish them for another 1.5-2 years. What kind of payment plans do they offer? What is the procedure?