Good morning guys! I'm sorry if this is the wrong place for this, but I am in need of some advice/ information about payment plans and such with the IRS.
So, someone I know sold some bitcoin this time last year and made quite a bit of money off of it. I think it was somewhere around $200k. They immediately put all of it into a 5 year CD that cannot be touched. They put aside some money for the taxes, but because they were a student for most of the year and have now been waiting on a security clearance to come through before they start working full time, they did not make much money and had to end up using the money set aside for bills and such.
Now, they are concerned about not paying the full amount owed by the tax deadline, which I think is something like $50k-$60k, and any fees and interest they may have to pay. I was wondering what the IRS policy is regarding payment plans and reasonable cause and such. I tried to do some research on my own to help out, but a lot of this stuff is over my head! I think I read there is a penalty each month, but that it can be waived if there is reasonable cause. I'm not entirely sure what that means.
If anybody could help guide me in the right direction that would be very appreciated it! Thank you so much!
Again, if this is the wrong place for this, please let me know! I don't want to break any rules or anything!
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