you can work out terms with the IRS by writing them a letter when you submit your taxes and telling them you could not pay it all...they will hit you with fine but it is accepted that you deserve the fine for not paying in full.....then they accept monthly payments until your out of debt.

it is pretty steep that you accumulated $4000 in debt to IRS in new job...how long have you been working there? That is a large amount of money for a new job to generate so quickly...more like a six month period of working without taxes....make sure to re write the W-4 statement about taxes being with held at your employer...you can do that at any time....I usually have them take an extra $5 or $10 per pay period so that at the end I get a refund not owe the feds money....that is a line on the W-4 that you write in extra amount of withholdings you want per pay period....after you tell them how many deductions you plan for dependents....I use just 1 withholding which means I am single...no kids....of course if I wanted less taken from me I could write in either Zero or 2? I am not sure which direction moves the money upwards I think it is Zero...but hey that might move it downwards...I do not know....I just know that line that says added amount per pay period you want removed for taxes each pay it allows you to bump the tax withholdings upwards by whatever amount per pay period....

you can always add more into that withholding line too for feds at any time....and they should have a line about state extra withholdings too....

There is a form to fill out if you owe money. I owed that amount when I was going through a divorce years ago.

The forms will let you set up a monthly payment plan and will tell you to avoid interest to make the payments as high as possible. Don't let that make you commit to something you can't fulfill. Make payments that you can afford.

And don't think it has to be paid in one year. It took me four years. I ended up adjusting my W-2 so more would come out and when tax time came around the refund went to what I owed...

It isn't that difficult to do and I had a good experience working with the IRS and settling up that bill... better then some collections I went through....

Thank you all for the replies. I had actually started 7 months ago. They took out everything else medicare, etc and I just never looked at the withholding. I certainly take the blame for this. I am hoping to have it paid my April with some extreme skimping.

I also refilled out my W4 as well and added in the withholding.

Thank you again!