Looking for advice on big tax bill coming up

For the very first time in my life, it looks like I'm going to have a pretty sizable (to me anyway) tax bill for 2012. Up front it's looking like it's going to be $20,000. To address the questions on the "why," let me just fall on my sword from the beginning and say I made some stupid financial decisions and didn't plan very well. I figure with changing my W-4 immediately and using some accrued savings that I can whittle it down to $10,000 that I won't be able to pay immediately upon filing.

So this is where I get confused. From my research, it sounds like I could request an installment agreement with the IRS. Paying back $10,000 over several years won't be a problem, it's just that I don't understand what kind of installment plan I would qualify for. It initially doesn't sound like I could use the "Guaranteed Installment Agreement" because my total tax bill would be over $10,000. If they're counting just what I can't pay immediately, maybe I would? If I can't use this option, it sounds like I could use the "Streamlined Installment Agreement." It is my understanding that if either payment plan is approved they won't put a tax lien on me?

I know I'll have to speak to an accountant when it comes time to file this year's taxes, but I'm just hoping to get some preliminary advice before then so I can start planning.

Reply to
Roy
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You are well within the limit for an automatic agreement.

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9373,00.html$50K or less and you can apply on line. If I recall correctly, 60 months is the maximum standard agreement. For $10,000 you'd be best off doing this in 2 years or less.

Reply to
JoeTaxpayer

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