Home |IRS Tax Return | Unexpectedly owing $13k+ for marketplace misunderstanding. We don’t really have it. I know I can go on a payment plan with IRS. How likely are they to work with me? The interest accrued already has been quite a bit.

Unexpectedly owing $13k+ for marketplace misunderstanding. We don’t really have it. I know I can go on a payment plan with IRS. How likely are they to work with me? The interest accrued already has been quite a bit.

Robert James, 20+ years of experience in IRS matters
Answered on September 16,2023

As long as you filed the return and it's been processed you can easily apply online for a payment plan:

Apply Online for a Payment Plan

If you are married the spouse listed first on the tax return is the one who needs to apply.

With a balance under $25k you shouldn't have any problem getting approved. You'll probably need to pay about $200 a month.

You can make a payment now using IRS Direct Pay - select Balance Due, Income tax - Form 1040, and the tax year.

Your payments are first applied to any user fee, then the tax balance due, then penalties, then interest. So paying more when you can helps lower the penalties and interest.

You may qualify for First time penalty abatement, which means IRS will waive the Failure to Pay penalties. The best time to request this is after you've paid the original tax balance due and only have penalties and interest left to pay.

Penalty Relief due to First Time Abate or Other Administrative Waiver

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