what happens if you owe the IRS for 2006

[quietsound]

what happens after you find out after you do your taxes that you OWE the IRS ....and you already declared 13 and you have already started making your first couple of payments......what happens then..........i mean being on a strict budget is bad enough ...how does one find the extra money to pay the taxes...

[lrprn]

what happens after you find out after you do your taxes that you OWE the IRS ....and you already declared 13 and you have already started making your first couple of payments......what happens then..........i mean being on a strict budget is bad enough ...how does one find the extra money to pay the taxes...

If the amount owed is low enough that you can cut corners to save it up over the next four months, then you pay it that way.

If the amount is too much, then you can ask your lawyer to approach your trustee NOW and explain that you will owe taxes for 2006 and how those can best be accommodated in your plan. Some trustees will allow you to push a payment or two to pay the taxes, others will insist on a formally filed plan amendment to accommodate paying your taxes. Call your lawyer today and find out what he/she suggests as your best option.

Last thing - go to http://www.irs.gov/pub/irs-pdf/p919.pdf and use the IRS form to change your payroll deductions as soon as possible so this doesn't happen again for 2007. The goal is to set your withholdings to get small refunds from federal and state (less than $250 if you can manage it), and not to owe any federal or state taxes.