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June 4, 2019
Solved

I'm not sure how to file my federal taxes if we already owe federal back taxes and cannot afford to pay 2016 federal tax due. We are already paying on installment.

  • June 4, 2019
  • 1 reply
  • 0 views
We have a 2016 state refund.
Best answer by MichaelL1

#1.  Make sure you file the 2016 return on time.

#2.  Pay what you can with the 2016 return.  The Installment agreement will technically be in default if you cannot pay the 2016 taxes, as all subsequent years are to be timely filed and paid.  So do what you can to pay this in full, and if you can't IRS will contact you with a new installment agreement for the past due amount and the 2016 taxes due.

#3.  You need to adjust the taxes withheld for 2017 so you do not have this problem again a year from now. 

1 reply

MichaelL1
MichaelL1Answer
Employee
June 4, 2019

#1.  Make sure you file the 2016 return on time.

#2.  Pay what you can with the 2016 return.  The Installment agreement will technically be in default if you cannot pay the 2016 taxes, as all subsequent years are to be timely filed and paid.  So do what you can to pay this in full, and if you can't IRS will contact you with a new installment agreement for the past due amount and the 2016 taxes due.

#3.  You need to adjust the taxes withheld for 2017 so you do not have this problem again a year from now.