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Discussion Starter · #1 ·
So,

We owe just around $2K in federal taxes this year. (We also owe some state taxes but I'm too depressed right now to even start those yet so I don't have a definite figure on that...)

My DH did a lot of 1099 work last year and that's what has us in this situation. (Along with a reduction in work hours which did not allow us to prepare for this by putting money aside...)

We won't have the money to pay until this summer after he works a job in May/June. Does anyone know if I can put off paying until then? Is there some sort of extension that can be filed? It's not that I'm trying to get out of paying, it's that I simply don't have the money...anywhere...unless I want to cancel my homebirth and pay taxes instead of paying a midwife and go for the cheaper (but not desireable) hospital birth.


I can hardly express how bummed out I am right now. Any suggestions are welcome.
 

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Go ahead and file your return and file a 9645 installment plan request. Put in the minimium you CAN pay per month and at least start paying it after you file on April 14. It gerenrally takes them 4-6 months to accept or propose a more aggressive monthly amount.

I would think that if you started with 50-75 a month (but you have to pay every month without fail) most likley they will not say anything and accept your plan.

I had the same thing happen to me 7 years ago when i made way more in my 1099 "job" that i expected... and I owed 3K or something I said I could pay $100 a month and they accepted it and the next year my the just got the balance covered from my tax return the next year.
 

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thanks blazer! I'll look into that right away...you've given me a bit of hope!
 

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What a bummer that they're wanting to charge an enrollment fee PLUS interest every month on your balance until it's paid...they really don't make this a very friendly process for those of us struggling to make ends meet...
 

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We have had to make payment plans before. It sucks, but not like we had much of a choice.
 

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I would cancel the homebirth and pay the taxes, sucky as it is. I am sorry you're in this situation, but debt suuuucks, and it's better to start ff with a new baby without debt, IMO.
 

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You are probably best filing on time, paying as much as you can. Balance due returns don't get processed until after all the refund returns are done so the first round of bills doesn't go out until June anyway. There will be penalties and interest on anything paid after 4/15, regardless of extension, as sunnysandiegan said.

If you need more time after you receive your bill, you can then call up and get a Full Pay Agreement for up to 120 days with no fee or an installment agreement (monthly payment plan) with a fee of $105 ($52 if you set is up as a direct deposit). Interest and penalties do accrue with either of these options, although the rate of penalty does drop once you are on a plan.

Once you have paid in full, write a letter explaining why you were unable to pay timely. Be very specific---if there was illness, give dates and doctor notes/hospital paperwork, whatever you have. If you have a good filing history, you can likely get all of your penalties reversed. The IRS has no authority to reverse interest, but if penalties are abated, the interest that was charged on that amount with self-adjust.
 

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Quote:

Originally Posted by MissinNYC View Post
I would cancel the homebirth and pay the taxes, sucky as it is. I am sorry you're in this situation, but debt suuuucks, and it's better to start ff with a new baby without debt, IMO.

Me too.
 

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Can you consult an attorney who consults for free? We've done this before and got three free consultations with three different attorneys. My dad is a financial advisor and he said he's got clients who have not paid the IRS back in 8 years and nothing has really happened. NOT that you'd want to go that route... What about also waiting until the last minute to file your taxes so that you're closer to having the money and then file for the extension on payments?

Another option...maybe again wait until the last minute to file or extension on when you have to file, pay your taxes, and see if your midwife would accept a payment plan.
 

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Quote:

Originally Posted by sunnysandiegan View Post
Just an FYI: The extension is an extension to file. It is not an extension to pay.
doh! that makes sense. sorry. I've never been in this situation, but I would try to put off paying it as long as possible if I didn't have the funds.

Not sure I would cancel the homebirth, though, and this coming from someone with 4 c-sections. If it's important to you, taxes can wait, IMO.
 

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Quote:

Originally Posted by buttercups.nest View Post
I am in Canada so I can't give you any advice...BUT we too are in serious debt...personal taxes, business taxes, GST...the list goes on.

I totally understand your stress!
s
Same here. It's my first year working as a self employed contractor and I had been religiously putting money aside for taxes. But then I found out I was pregnant and was going to have to take unpaid time off, so I used all that money to pay off the rest of our debt. But now, obviously. I have NO money for taxes and it's going to be at least $13,000. Probably more. I'm either going to have to make payments or drain my retirement fund.

I feel your pain
 

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Honestly, IME, the IRS is very accomodating and (about 9 people out of 10), were very friendly and informative on the phone.

I was very pregnant, very broke, and learned I owed them 10K that I didn't have. They accepted $100/month without a problem. I think there was interest charged on it though, but I don't think it was a high rate.

I work a 1099 and some years I still need to do a payment plan. They're usually fine with working with you.

Some tips:

BE COOL on the phone, this one was tough for me to learn......but once I learned to stay rational and stay to the facts (and express how much I want to pay them
), they were fine!

And, as the saying goes, "They can't squeeze blood from a stone"...you'll pay what you can and that's all you can do.

FWIW, I wouldn't go to a hospital birth over it.
 

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Quote:

Originally Posted by weliveintheforest View Post
I would way rather have debt than a hospital birth. I hope you can work it out with a payment plan.
Me too. It's two grand. The taxes aren't going anywhere, but the birth only happens once.
 
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