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we have been taking more exemptions because we have been saving

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for a downpayment on a...
we have been taking more exemptions because we have been saving for a downpayment on a house. We are now scheduled to close on the house Oct 22nd. However, we estimate that we will be behind/owe $20,000 in taxes. We will have $10 to $12,000 of that amount after all the moving/closing costs are completed.
Our question is what is the best way to pay this off? We will be able to save up and pay off several thousand dollars more (but probably not the full $20,000. Also, do we have to (mostly) have it paid off by the end of the year or by April 15th? We have excellent credit scores and very good income/debt ratios, we simply calculated that putting down the full 20% on our house was worth handling our taxes this way. Thanks!
Submitted: 7 years ago.Category: Tax
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10/1/2010
Tax Professional: Richard, Tax Attorney replied 7 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,790
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Good morning. The best way for you to deal with this is to contact the IRS and work out an intallment payment arrangement. The IRS is used to this and is pretty willing to work with you. You should download Form 433-A off the IRS website in preparation of this because this is the form you will need to submit. Also, because of the amount, you can also just arrange to delay the payment up to 90 days.

 

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard
Richard, Tax Attorney
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