<prompt> Human: I went through divorce and left with nothing so I decided to take out my IRA so i could have money to rebuild my life. I did my ex and Is joint taxes and failed to report the 18K as income a big mistake. Now the IRS wants 26K in payment which includes tax owed, interest and penalties - much more than what I initially took out. I dont know what I should do. I cant afford to pay that amount of money.  <response>: Now the IRS wants 26K in payment which includes tax owed, interest and penalties - much more than what I initially took out. I dont know what I should do. I cant afford to pay that amount of money.Something is screwy, theres no way to owe that much based on the amount you took out. You need to look at the notice and see exactly what else theyre saying changed, because its not just the amount of IRA distributions. 