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Confused regarding payment options

During a multi-year period of unemployment, I withdrew funds from my IRA several times to make mortgage payments. Taxes on last year's withdrawals are due - and I will not be able to pay them on April 15th.

The process for negotiating payment terms is not clear to me. On one web site I read the recommendation to file, pay nothing, and wait for a bill - at that point fill out a form requesting a payment plan. Another website said I can defer payment for 120 (?) days, but I assume that means the entire amount will be due - I will not be in a position to make that several thousand dollar payment.

Is there a clear directive somewhere?

Thanks in advance to you all - a very helpful group.

Reply to
Plunker
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If you don't pay on time you are subject to late payment penalties and interest with one exception.

The IRS does have an informal payment plan if you can pay the balance within 120 days. The IRS has a formal program called an Installment Payment Agreement (IPA). There is fee to start one of these and you have a few years to pay it back. Here comes the exception: The IRS recently announced that for those individuals who meet the definition of financial hardship, you can file for a 6 month extension to pay in full. You avoid the penalties but are still subject to interest. See the following link for who qualifies for financial hardship.

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on the IPA is here:
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$3335,00.html

Reply to
Alan

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