How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lev Your Own Question

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 23169
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I am just now filing my 2011 Federal income tax return. Since

Resolved Question:

I am just now filing my 2011 Federal income tax return. Since my husband died it has been difficult for me to figure things out because he had ALL withholdings done with his paycheck. I had no with holding of income tax from my pension, social security disability (I am disabled and retired) and ultimately the pension for spouses from my husband's union.

So the problem being, since he died in April of 2011 there were NO MORE WITHHOLDINGS. Consequently, I have discovered a huge income tax liability for 2011 (nearly $5,000 for Federal and $2,000 for State). I don't have that kind of money available to me since I used my savings to pay the tax liability for 2012, although it was late.

I will need to ask for a PAYMENT PLAN for my 2011 tax liability. Can you tell me how to do it and what I need to ENSURE they will allow it? Also, what happens if they deny me a payment plan? :\
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Lev :

Hi and welcome to our site!
The first step would be - to prepare your tax returns - and determine your actual tax liability - it might be less than the IRS determined - in this case - you may simply file your tax returns - and your tax liability (and corresponding penalties and interest charges) could be reduced substantially.
To prevent the IRS from garnishing your wages - generally - you need to establish payment plan. This agreement would allow you to pay your full debt in smaller, more manageable amounts. Installment agreements generally require equal monthly payments. The amount of your installment payments and the number you make will be based on the amount you owe and your ability to pay that amount within the time the IRS can legally collect payment from you. You will find more information and references to forms on this page - http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Fresh-Start-Installment-Agreements

Lev :

In order your your installment agreement to be accepted - the maximum term should be not more than 72 months. Before you apply:



  • File all required tax returns;

  • Consider other sources (loan or credit card) to pay your tax debt in full to save money;

  • Determine the largest monthly payment you can make ($25 minimum); and

  • Know that your future refunds will be applied to your tax debt until it is paid in full.


Fees for setting up an installment agreement:



  • $52 for a direct debit agreement;

  • $105 for a standard agreement or payroll deduction agreement; or

  • $43 if your income is below a certain level.



If you are not comfortable using online application - Complete and mail Form 9465, Installment Agreement Request


 

Lev :

If you will not be able to reach any agreement with the IRS - your income and assets might be garnished to satisfy the tax debt. So - you better to avoid such situation.

Customer:

Within the link you provided it says:


The Streamlined Installment Agreement criteria is divided into two categories, balance due of $25,000 or less, and balance due $25,001 to $50,000.


The criteria to qualify for streamlined installment agreements with a balance due of $25,000 or less are:



  • You owe $25,000 or less, at the time the agreement is established. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.

  • The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.

  • You must be compliant with all filing and payment requirements.

  • Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).

  • Defunct businesses, including any type of entity and any type tax (Form 940, 941, 943, etc.).

  • Operating businesses are limited to income tax liabilities only (Form 1120).

Customer:

Noting the 2 things I highlighted - What is the Collection Statute Expiration Date? and How do I know if I'm compliant with all filing and payment requirements? Will you please answer these clarification questions? Thank you

Lev :

the Collection Statute Expiration Date is ten years after the tax liability is assessed. So if you have the tax liability only from 2011 - and do not have any earlier tax liability - that should not be your concern. What you need in connection with this item - file your 2011 and 2012 tax return - so your tax liability is clearly identified.

Customer:

Do you know if this applies to state tax returns also? I live in Minnesota.

Lev :

In general - yes - but you need to apply for state installment agreement separately.

Customer:

Thank you so very much, you've been a great help. God bless you!!!

Lev :

Here is the publication which might be helpful - http://www.revenue.state.mn.us/collections/factsheets/Installment_Payment_Plans.pdf

Lev :

You have the option of setting up a payment agreement online using the department’s payment agreement system.

Customer:

Thank you for that link. It looks like it presupposes I have filed the return already, which I have not. So do I file my state return with no payment at this time? I'm confused, I'm sorry.

Lev :

Yes - all tax returns must be filed before you start application for installment agreement.
You need to know the exact amount of your tax liability - that you do not know if you have not file tax returns.

Customer:

ok thank you.

Lev, Tax Advisor
Category: Tax
Satisfied Customers: 23169
Experience: Taxes, Immigration, Labor Relations
Lev and 4 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Lev
Lev
Retired
19289 Satisfied Customers
Taxes, Immigration, Labor Relations