I owe over 10k. Can I still e file? Also, the payment section says to apply for installments only if under 10k through Turbo Tax.

[AnthonyC · Accepted solution]

Yes, you can still e-file whenever your forms are available and ready to file.

You can just apply for an agreement online directly with the IRS.  I actually recommend you follow this route because the fees the IRS charges to set up an agreement are less with this method and you get an immediate response to your application.  You can file your return as normal through TurboTax and then instead of making a payment, you will tell the program you are going to pay by check and then ignore the voucher that prints out (or you can make a partial payment with it).  Then, go to the link below and file an installment agreement with the IRS.  Be sure that you include the current tax year (2017) in any agreement.

https://www.irs.gov/individuals/online-payment-agreement-application (link to application process)

https://www.irs.gov/individuals/payment-plans-installment-agreements (link for general information) 

[sudbina2]

Thank you so very much!

[sudbina2]

Also, would you happen to know if I file my taxes next year as normal (even if set up on the IRS long term installment)?

[AnthonyC]

You're welcome.  Yes, you will just file your taxes normally.  The one caveat being that if you are owed a refund next year (or in any year that you have an installment agreement) the IRS will automatically apply that refund to your balance.  But, you will still file your taxes normally, just don't expect to receive any tax refunds while you have an active installment agreement.

[sudbina2]

Sure, that makes sense. Again, thank you so very much.

[AnthonyC]

One more thing - part of your installment agreement is going to contain a clause relating to you promising not to owe taxes during the agreement on future returns.  I am not sure how strictly they enforce it but you are definitely not going to want to owe 10K again next year or they could cancel your agreement.  So, make sure to make estimated tax payments if you think you are going to owe that much again.  And, keep that in mind when you come up with a monthly payment amount (if you need to also make estimated tax payments).

Heres a link for more information on that process -

<a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes">https://www.irs.gov/b...>

[sudbina2]

Thank for the information. - this is really good to know. This is an early retirement withdrawal penalty...so, there shouldn’t be any future tax issues (I hope). However, we don’t know what future holds (hopefully all good, and happy things) but, just in case this is very good to know. I truly appreciate your time and your help. Thank you so much.