Tax Problem

[skkuchipudi]

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Hi, I have calculated the tax for the year 2009 from turbotax and I came to know that I owe $7000 to federal and state tax and revenue. Since it's a big money which I can't effort now, is there any suggestion to avoid this crisis? Please advice me. My employer didn't pay the taxes for the state ( I realized when I saw my W2O).

If anyone could help me, it would be great and thankful.

thanks,
Kumar

[Jim]

Assuming your tax returns were computed correctly, there isn't much you can do at this point to avoid "this crisis". The IRS, and I assume most states, have programs where you can pay your taxes over a period of time. To set up a IRS plan you need to submit IRS Form 9465, Installment Agreement Request. Contact your state tax agency to see what is available for your state tax. Be advised that there is a charge for setting up installment payments and interest accrues while you are paying off the debt.

You also need to change your withholding, federal and state, so you don't have the same problem next year.