3016654
My spouses company did not with hold federal income taxes and now I am faced with a large tax bill, how can I make installments without IRS penalties and interest ?
I tried contacting the IRS to discuss - they keep transferring me to a number that says go online for tax answers which is why I was calling them directly is because they are not online ... Aaaargh ..
We asked my spouses employer why they did not take out withholding:
"Back in 2020 the government changed the way we got our taxes. Instead of getting big returns they have adjusted the brackets so that we receive more money through out the year. In 2022 the changed the tax brackets to help with inflation, which resulted in people seeing little to no taxes taken out. You can consult a tax account for further explanation or go to the IRS website at IRS.gov. This is nation wide it is not just "
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Not sure why you expect the IRS will give you a payment plan without interest. Your spouse should have been aware that no tax was being withheld all year. It is too late to fix that for 2022. Your spouse needs to submit a new W-4 to the employer to have tax withheld going forward.
https://www.irs.gov/individuals/tax-withholding-estimator
https://www.irs.gov/pub/irs-pdf/fw4.pdf
To apply for a payment plan with the IRS
Apply Online for a Payment Plan
For starters it is a requirement by law that the employer do withholding.
https://www.irs.gov/payments/tax-withholding
There is no stipulation that anyone must look at their check and decide whether it is proper or not so whether my spouse looked at the check amounts or not or knew what those things were or not - is irrelevant.
So that is why I would expect that the IRS would consider that the employer did not fulfill their part, therefore I should not be held accountable for their error.
Did the employer ask your spouse to fill out a W-4?
Yes they did.
If they didn't implement the withholding requested by your wife on the W-4 then you might have a case to make with them to pay for the interest.
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