IRS Deficiency Notice For $4,893 From 2022 Return - Can I Set Up Payment Plan Instead Of Paying Full Amount?
Got a notice from the IRS saying I owe money from my 2022 return. I just received a "Notice of Deficiency - proposed change to your tax" letter that outlines the proposed changes to my 2022 income tax and informs me about my right to challenge these changes. The IRS says my income tax needs to be adjusted because of information they received from others like my employer or bank. They noticed differences between what I reported on my tax form and what they received from these third parties. According to the notice, I have a "Proposed tax you owe (deficiency)" of $5,994. This is quite a bit more than I can pay right now. The notice says "You can contest the changes by filing a petition in the U.S. Tax Court. The last date to file a petition with the Tax Court is April 29, 2025." Under "Next steps," it says "If you agree with our changes, fill out and return the enclosed Form 5564 to indicate your agreement." If I agree to the amount they say I owe, will they demand the full payment or can I set up some kind of payment plan? Really nervous about this whole situation and don't want them garnishing my wages. I don't have nearly $6,000 available to pay immediately, and I'm worried about what happens if I acknowledge I owe this money but can't pay it all at once.
13 comments
Paolo Rizzo
Tax pro here - dont worry! The IRS actually has several payment options. You can setup an installment agreement online through their website. If you owe less than 50k, you can usually get approved automatically. The minimum monthly payment depends on how much you owe but its usually pretty reasonable.
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Keisha Williams
omg thank you! That makes me feel so much better. Do you know what the interest rate is?
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Paolo Rizzo
Current rate is around 7% plus a small setup fee. Way better than credit cards or letting it go to collections!
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Amina Sy
Hey, you should check out taxr.ai - its this new tool that analyzes your transcript and tells you exactly what payment plans youre eligible for and helps estimate your monthly payments. costs $4.99 but saved me hours of research. https://taxr.ai
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Oliver Fischer
Does it really work? Sounds too good to be true
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Amina Sy
100% legit! It breaks everything down in plain english and even shows you how to apply. Best $5 I ever spent on tax stuff fr fr
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Natasha Ivanova
in the same boat rn 😭 owe like 8k and im STRESSED
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NebulaNomad
Whatever you do DONT ignore it. That's what I did and ended up owing wayyy more in penalties. Just be upfront with them and theyll usually work with you.
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Javier Garcia
fr fr the IRS actually pretty chill if you communicate with them 💯
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Emma Taylor
you might qualify for an Offer in Compromise if you can prove financial hardship. Worth looking into tbh
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Malik Robinson
This! My cousin got his debt reduced by like 60% doing this
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Isabella Silva
Bruh just call them. The wait times are crazy but once you get someone on the line they usually pretty helpful ngl
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Ravi Choudhury
☠️ tried calling yesterday, was on hold for 2 hours then got disconnected lmaooo
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