I was late filing for 2006 taxes, of course my fault. I filed late and my taxes owed were $52,000. CPA filed for me and sent off my initial payment of $10,000. I had no official payment arrangements with IRS, but, thought I would have a little time to arrange official payment arrangements.
I am in compliance with all other years.
CPA recieved a letter on my behalf today saying total 2006 taxes are now $75,283.
I was 100% honest on 2006 taxes and the $52,000 owed was not questioned. My question is , could this extra $23,000 be just failure to file fees and compunded interest ? Seems like a lot if that is the case.
I do not think I would qualify for an offer in compromise, I am relatively young and have decent future earning potential. However, I am in the Real Estate business and this past year has left me struggling with a certain further decline in income through 2009. I do not trust the companies on TV who say they can get you paid with pennies on the dollar.
CPA had my power of attorney and says the next letter will be an intent to levy, I don't have much right now, so, not too concerned about that. She also feels they will issue me a federal tax lien, again, out of my control if they do.
I am not trying to avoid the original taxes, but, the extra penalty is beyond my ability to ever pay , just looking for anyone who may have any advice or have possibly been in a similar circumstance.
State of Florida
Thanks to anyone who responds !