What should I do.?

Question

I am young just about 12 months out college and make a decent salary. I claimed many deductions on my income. I just found I may owe close to 8k in taxes. Is there any way to avoid paying these income taxes. I am extremley close to buying several income properties as investment and fear this will be a huge setback. I hate the IRS and will do anything excluding going to jail to avoid paying these income taxes. Should I create Phony deductions, charity scams. I will not give the IRS all this money so it can be misspent on stupid federal goverment burecratic programs. Please help

Answer 1

If you owe the IRS you are going to have to pay. I would work out a payment plan with the IRS instead of avoiding paying them at all, even if you disagree how they are spending your tax dollars (vote in the next election so that you can show that you want to have a change in the Government).

Making up deductions is the wrong thing to do. It is tax fraud. Tax fraud is how they caught Al Capone, plus if you do it and get audited you will owe what you originally owed plus penalites, fees, and interest.

I'd suggest doing some tax planning so that you will not have this happen again.

Answer 2

double check your return and make sure you have the standard or itemized deduction. did you pay any tuition? if so, get the HOPE credit. did you pay any student loan interest? it is a separate deduction. did your employer report your withholding taxes accurately? if so, it sounds like you need to have a lot more withheld. you need to give your employer a new Form W-4. did you make a contribution to an IRA? if so, did you show it as a reduction of taxable income? finally, you should prioritize getting right with the IRS, before you jump into the properties, or (assuming you are borrowing for the investments) borrow the additional funds necessary to pay the IRS.

Answer 3

You either give it to them now or you would have to give them much more later. Byte the bullet and pay up. None of us like paying taxes, but it is the price we pay for living in this country.

Making up phoney deductions is considered fraud and not just an accidental error. Committing fraud can end you up in jail.....plus you still have to pay the taxes, penalties and interest.

If you can't pay all at once, work out a payment plan with the IRS. In this aspect they are pretty good to deal with. If you start making up phoney deductions, you will be on their $hitlist for a very long time.

Answer 4

Either quit your job TODAY and try to live off of the "stupid programs" or change your W-4 form with your employer and only claim 1 or 0 allowances. That will take care of next year. For now, postpone buying the properties and PAY YOUR FAIR SHARE of taxes like everybody else. Everybody sometimes disagrees with the way our tax dollars are spent - You're young - Run for public office and change things !!!!!

Answer 5

If you make the money, you have to pay the taxes. In the future, you should attempt to estimate how much money you are earning in order you can set aside the appropriate amount for taxes (estimated payments). Whether you like how the government spends your money or not is irrevelant.

Answer 6

Two wrongs dont make a right!

Just because you claimed too many allowances on your W-4 does not give you the "priviledge" of committing "fraudulent acts".

You dont need any help.

You just need a psychiatric evaluation.