One month of relief and now more problems
I realize this is all my fault, but I have been trying to get a payment plan for back taxes since last May. I have spent hundreds of hours on the phone and had to send a couple of years in twice by certified mail and they still don't have them listed on my account.
But last month I felt like I hit the jackpot and finally got a payment plan. I sent a nice letter with the agent's identification number and the name she used.
So I've been scrambling to get money together to file and pay this year's income taxes. Even though I changed my withholding, I accidentally did one to my state, so the federal amount was short by $2100.
I just made my first installment payment according to the payment plan. My 2025 taxes filed and paid in full. I thought I was finally in good shape and could relax.
Yesterday I got a letter from the IRS CP22A saying they made an adjustment to my account and I owe another $3615 for interest and the interest is charge up to March 31. I have until April 27 to pay it and I have no money left.
It's so discouraging and there is still one year for which they didn't receive my tax form and I've sent that twice since June.
It's so discouraging because I will have to start calling again for this adjustment and if they ever get my taxes for the missing year, make calls again.
I understand that they are swamped because of firing workers. But if they did things a little differently they would have way less work to do.
I feel like sending them a suggestion that would save workers a lot of time and trouble. I was behind on the State of California taxes, too. Around the 3rd year they sent me a letter with a one time offer of a payment plan. I signed it and set up a direct payment from my bank and got it all paid back with no problems or calls.