22 What about if you can't afford the monthly payments they want? My friend got hit with a huge tax bill and the minimum monthly payment was still too high for him.

3 If the standard monthly payment is too high, you can request a lower payment amount based on your financial situation. The IRS offers something called an "Offer in Compromise" for extreme cases where you truly cannot pay the full amount, or they can set up a plan based on what you can reasonably afford after necessary living expenses. Your friend should complete Form 433-F (Collection Information Statement) which details income, expenses, and assets. Based on this, the IRS may agree to lower monthly payments. In some cases, they might even temporarily classify the account as "Currently Not Collectible" if there's genuine financial hardship.

14 Good point! State tax agencies are actually sometimes harder to deal with than the IRS in my experience. My state wanted a higher monthly payment and shorter term than the feds did.

22 That's a great point I hadn't considered. So even if I get a smaller refund filing jointly, I might still be paying less taxes overall?

11 Exactly! The refund is just the difference between what you already paid throughout the year and your final tax bill. A smaller refund with a lower total tax bill is better than a bigger refund where you paid more tax overall. For example, if you paid $15,000 in taxes throughout the year and your actual tax bill is $13,000, you'd get a $2,000 refund. But if you paid $10,000 throughout the year and your tax bill is $9,000, you'd only get a $1,000 refund - but you'd have paid $4,000 less in taxes overall ($9,000 vs $13,000)!

14 Do the advance Child Tax Credit payments still exist? I thought those were just a COVID thing and they stopped doing them in 2022?

This is really helpful advice. If I take this approach, should I let my current accountant know before tax season starts that I'll be requesting drafts for a second review? I don't want to spring it on them last minute and create tension.

Yes, definitely give them advance notice, ideally now, well before tax season gets into full swing. Frame it as a risk management practice for your business rather than a lack of confidence in their work. Most professionals understand that businesses your size often have multiple layers of review for important financial matters. When you do request the drafts, be specific about the timeline you need, allowing enough time for both the review and any potential revisions before filing deadlines. This approach keeps everything professional and gives your current accountant the opportunity to address any issues before another firm sees them, which they'll appreciate.

We did switch after a second opinion revealed our previous firm missed substantial R&D credits we qualified for over 3 years. It was awkward initially, but we framed it as our business needs evolving rather than dissatisfaction with their work. We still maintained a good relationship - even sent them a client referral later. Professional accountants understand business decisions aren't personal.

I had no idea about losing all those credits! That's super helpful info - I think we'd definitely lose more than we'd gain by filing separately. Can you explain more about the IRA contribution part? My husband maxes out his IRA every year.

For IRA contributions, when you're married filing separately, if you lived with your spouse at any time during the year, the income limit for deducting traditional IRA contributions is much lower - phasing out starting at just $10,000 of modified AGI. And for Roth IRAs, the contribution limit phases out between $0-$10,000 if you're MFS and lived together. So if your husband is making more than $10,000 (which it sounds like he is), his ability to make deductible traditional IRA contributions would be reduced or eliminated when filing separately. With a Roth IRA, he might not be able to contribute at all if filing separately. This is one of those "marriage penalties" built into the tax code that makes MFS disadvantageous for many couples.

We've done both over the years depending on our situation. You're right that the prep is way more involved for MFS. The year we did it, we had to literally create spreadsheets to divide household expenses appropriately. Our tax guy charged us more too because it was basically preparing two separate returns. The student loan IDR benefit can be huge though. My wife's payments dropped about $300/month, which more than made up for the slightly higher tax bill. Just weigh all the factors carefully!

I did this last year! Had a $3400 tax bill with about $400 in penalties. Called the IRS, mentioned "First Time Penalty Abatement" specifically, and they checked my history. Since I had a clean record for the previous 3 years, they approved it on the spot. Still had to pay the tax and interest, but getting the penalties removed helped a lot. Definitely worth asking for!

Thanks for sharing your experience! That's really encouraging to hear. Did you have to fill out any specific forms or did you just request it verbally over the phone? I've been a good taxpayer for years and this is my first time owing, so hopefully they'll do the same for me. I'll definitely make sure to specifically mention "First Time Penalty Abatement" when I call. Did they give you any pushback or was it a pretty straightforward process?

OMG this!!! I made this mistake last year and got HAMMERED with the failure-to-file penalty. Ended up owing like 20% more just because I was scared to file without having the money to pay. Worst decision ever. File on time people, even if you can't pay a dime!