We owe $2,022. to CA 2008 and 9,831. for 2009. Will they let us add 2009 to the installment plan? We cannot pay all now. 1 Answers as of November 15, 2010We need help with both our State and Federal taxes. We borrowed from our 401K to pay off bills, now our tax bills are so high that we cannot pay all at once and have installment plans for 2008. we just filed 2009 in Oct and now we owe a lot for both. The State of Ca sent us a notice to contact them since we now owe for 2009 and they say you can only have one installment account open at on time. We owe the state $2.022. for 2008 and now owe $9,831. for 2009. If we can raise the 2008 amount and pay it off I need to know if they will let us pay 2009 with an installment plan.
Should we get a tax attorney? Is this something that a tax attorney helps with? We are in the same situation with Federal taxes as well.
Givner & Kaye | Bruce Givner
If you cannot pay the money then the State will have no choice but to accept payments from you. However, that will not prevent the State from filing liens on your assets. You do not necessarily need a tax attorney. Some CPAs specialize in working out payment agreements for their clients. Then there are people who used to work for the IRS or FTB who specialize in working out payment agreements with both branches of government, e.g., former IRS chief of collections in L.A.
Answer Applies to: California