How did I end up owing $8,000 in federal taxes with zero withholding as a single filer?

This definitely sounds like a W-4 error or payroll system mistake. When you started your new job, you should have filled out a new W-4 form. The 2020 and newer W-4 forms no longer use "allowances" - instead you claim dependents or additional deductions directly. What likely happened is either: 1) you accidentally checked the box for "exempt" on your W-4, 2) the payroll department entered your information incorrectly, or 3) there was a system error that didn't process your withholding correctly. The good news is that the IRS offers payment plans for situations exactly like yours. You can apply for an installment agreement online through the IRS website. For amounts under $10,000, it's usually automatically approved if you can pay it off within 36 months. The setup fee is around $31 if you agree to direct debit payments. Interest and penalties will continue to accrue, but it's much better than trying to pay it all at once. I'd also recommend speaking with your HR or payroll department to understand exactly what happened so you can prevent this from occurring again.

I had a similar issue last year with missing withholding, and I was absolutely stressed trying to figure out my options. After struggling with the IRS website and waiting on hold for hours, I found this service called taxr.ai (https://taxr.ai) that helped me analyze my tax situation and figure out my payment options. You upload your documents and it helps identify any potential issues and explains your payment options in plain English. It showed me exactly how much I'd pay in different installment plans, including the interest and penalties, and even suggested some deductions I missed that reduced my overall bill. The stress relief of having clear options laid out was honestly worth it.

Just wanted to follow up - I decided to try taxr.ai despite my initial concerns about security. Honestly, it was exactly what I needed! The document analyzer immediately flagged that my employer had been using outdated withholding tables (which explains why I also ended up owing more than expected). The service mapped out three different payment plans and explained the total cost of each one with interest. I actually discovered I qualified for a first-time penalty abatement which saved me over $900! It generated all the paperwork I needed to submit, and I've already set up my payment plan. Seriously wish I'd known about this sooner - would have saved me so much stress.

If you need to speak with an actual human at the IRS about your payment options (which I highly recommend), good luck getting through on their phone lines. I spent literally days trying to reach someone before finding Claimyr (https://claimyr.com). They have this service that gets you through to an IRS agent without the insane wait times. I was super doubtful it would work, but you can see a demo at https://youtu.be/_kiP6q8DX5c of how it works. They basically navigate the phone tree for you and wait on hold, then call you when they have an agent on the line. I got through in about 45 minutes instead of the 3+ hours I was spending on my own attempts. The IRS agent I spoke with was actually super helpful - they walked me through all my payment options and even helped me understand why my withholding got messed up in the first place.

OK I need to eat crow here. After posting my skeptical comment earlier, I decided to try Claimyr because I also owed a large amount this year ($6,200) and was getting nowhere with the IRS phone system. I'm honestly shocked to say it actually worked. They called me back in about an hour and connected me directly to an IRS agent. No hold music, no automated system asking me the same questions over and over. The agent set me up with a 36-month payment plan that I can actually afford, and explained that I qualified for the first-time penalty abatement program which will save me about $800 once I submit the request form. They also walked me through exactly how to fix my W-4 for this year so this doesn't happen again. I'm still paying what I owe, but at least now I have a manageable plan and saved some money on penalties. Sometimes it's worth admitting when you're wrong!

Check if your employer is withholding state taxes too! I had a similar issue last year where they weren't taking out federal OR state taxes. Fixed the federal part but completely forgot about state and got hit with another bill later. Don't make my mistake!

Another option to consider - you might qualify for an Offer in Compromise if you truly can't pay the full amount. The IRS will sometimes settle for less than what you owe if you can prove financial hardship. Their pre-qualifier tool on the IRS website can help you determine if you're eligible.