Have a Tax Question? Ask a Tax Expert
JACUSTOMER, did your husband tell you what kind of mistake was made at his job? Did he fill out his W-4 incorrectly or did the employer just not withhold? Also, did the employer withhold social security and medicare taxes?
My husband sells time share for the Marriott - it is common practice amongst the sales people to change their tax status when they are expecting a bonus check to get more money and less taxes taken out, when he did this he then filed a reverse request for his status to go back to what it was before but the office person he handed the request sheet to did not file it - soo for most of 2010 federal tax was not taken out or very little. I did not know of this until this AM
How much do you owe (at this point) for 2006? How much do you think you will owe for 2010?
we are still paying on about $22,000 for 2006, I would imagine we will owe at least $25,000 for this year
Are you current with your payments? Have you considered whether or not you may be eligible for an offer-in-compromise?
have not thought about that - with this new information this AM it may be the way to go - how do we know if we qualify. 14 years ago when we got married I learned he was way behind with his taxes and he had to do that for a much higher amount
you cannot do offer and comp for taxes you are already in a payment plan for right (like our 2006 taxes we are paying on)
You have to meet one of the requirements to file an OIC. 1. The tax is not correct. 2. There is no way you would ever be able to pay all the taxes. or 3. An exceptional circumstance applies to you.?
No, you do have to make sure you meet the qualifications. If you are going to file as "unable to pay", you have to make sure you are truly unable to satisfy the requirements. There are some IRS pages that can assist you with OIC information, whether you qualify, and how you go about filing. I'll provide you with some links.
If you do not qualify for an OIC, you may be better to file a joint return. If you earned a very small amount of money, it may reduce what you owe to file joint. The IRS has a process for putting liens in effect. Part of the process is you disregarding your tax obligations. However, recurring years of unpaid taxes when due can result in several types of penalties which may tack on a lot more money to what you already owe. You should be very careful to avoid not paying taxes throughout the year from now on.
I hope this helps you. Please let me know if I can assist you further.