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$5,000 owed to the IRS

View More Debt Management QuestionsPosted 5/27/10 at 12:27am by davidwestAC
My mom is in a pretty bad situation and owes $5,000 to the IRS. She collected alimony from my dad and wasn't aware that it was taxed again and now she's in this mess. What are her best options? There's no possible way she can pay this amount off without a lot of time.
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User Contributed Answers (2)

Hate to say it but she may need an attorney to negotiate on her behalf
I think they work on a percentage of money owed
good luck
Posted 6/2/10 at 5:15pmWas this answer helpful?   Yes / No
If the extra income hasn't been declared to the IRS, the first step is to file. Not declaring the income could result in heavy penalties (up to 25% additional, I believe). If she doesn't have the money to pay, the IRS will work with her on installment payments. Look into Form 9465 (the Installment Agreement Request). They'll charge you a small setup fee and some interest, but it's a legal way of paying off the tax debt over multiple months. Before taking any action, I'd recommend contacting a tax accountant and getting legal advice.

Good luck!
Posted by Harry Maugans (hmaugans) - 6/10/10 at 2:35amWas this answer helpful?   Yes / No
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