Potenially Behind on my Taxes - Any Suggestions?

Question

I have had a relatively short working career, the part-time and temp jobs I did through college yielded little income.

Since then (The past 5 to 6 years) I have had somewhat steady employment as a contract designer and no real way to track my income ( I have changed addresses a few times - companies I worked for kept sporadic records etc.) until this past year where I landed a management level position - yet still as a contracted worker with no benefits or taxes taken out to my knowledge.

I now feel it's time to move on to payroll and into the benefits package - but that won't occur until late October of this year.

I'm currently making 45K (annually) and do not want to jeopardize what little money a make by potentially alerting the IRS to my situation before I get my expenses and receipts together.

I'm confident I can "get right" with my tax situation - what's my best course of action?



Thanks again for your time and interest.

Answer 1

The best thing to do now is to

1. Balance your books and get organized. you should have all your stuff together
2. Figure out your bottom line: How much income did you make
3. hire a prive tax consultant to do your taxes. Give him all your reciepts)
4. He can get them ready to file for when the time comes. His fee will be about 300 per return, but it will be well worth it as he will find awesome ways to save you money.

Answer 2

You will likely need to file tax returns for the past five to six years. Income and payment information can be requested from the IRS, which will show any income that was reported to them under your social security number and any payments made by you for the years in question. Records can also be requested that show if the IRS has filed any returns for you and if there are any current assesments against you. If you are filing a tax return to replace a return filed by the IRS, the process is very different. You need to make sure it is being done correctly so as to not have your tax returns lost in the void for months. The absolute worst thing you can do is ignore the IRS! An arrangement can be made that works for you. If you need questions answered I have a very informative website at: www.etaxrelief.com. You can also feel free to call me if you would like assistance with resolving your situation. Best of luck to you.

eTaxrelief.com

Answer 3

Are you saying that you've been working as an independent contractor for 5 or 6 years, have not kept track of your income or expenses (your responsibility, not the companies who pay you!) and from the sound of things haven't filed any tax returns? And you've been making around $45k per year? OUCH! That is going to get REAL expensive!

In your situation, the only sane thing to do is to retain a CPA or EA to assist you in getting your financial house in order and filing the missing returns. From the numbers you gave, if I'm interpreting things right, your tax debt could easily be over 6 figures now with penalties and interest added in.

Answer 4

Take the time to find all of the paperwork you can. Put it into the best order you can, and carry it in proper file folders. Go to the closest IRS office, and ask to speak to someone who can help you 'get your tax situation in order' that day. When you meet that person, give him/her your file folders and tell him/her that you are very sorry for being so lax, but you are now trying to get your 'life in order' and BECAUSE your files are so messed up and incomplete, you don't know quite what to do to make your 'late payments', you REALLY need his/her help. The last thing you should do is pull out some money ... it doesn't need to be a lot ($1 is the minimum, up to $20) but you are prepared to 'start making regular payments today.' BE SURE that you say you are NOT offering a 'bribe' but that you know how ridiculous it is to hand in 'greenbacks' but you do have a checkbook and are willing to write a check as long as the 'payment' can be minimal ...
I know ... the 'flashing cash' is a JOKE, which is why it must be no more than $20, but it WILL show that you are hoping for a 'reasonable payment schedule' and that you know how 'ridiculous' it is for you to get into this 'sad state of affairs' ...
By the way, if you make 'an effort' and you take the stuff to the IRS before they start after you with warrants and court cases, and you pay at least $1 a year, you'll probably be give low monthly payments for any 'back taxes' and you'll be put on a 'do not audit' list as long as you pay your future taxes by the date taxes are due and your 'debt' is paid off.

Answer 5

FIRST THING TO REMEMBER, ALWAYS BE HONEST ABOUT INCOME AND TAXES. THESE PEOPLE DO NT PLAY AND THEY WILL GARNISH YOUR WAGES IF NEED BE. YOU DO NEED TO GET ALL OF YOUR BUSINESS UP TO DATE BECAUSE THAT WILL BE QUESTIONS THEY WILL ASK YOU ABOUT WHEN YOU CONTACT THEM. BUT DO NT DELAY YOU DO NT WANT TO HAVE TO PAY PENALTIES AND INTEREST FEES.THAT COULD BE COSTLY. ITS ALWAYS BETTER TO HAVE WHAT YOU HAVE NOW AND IT REALLY BE YOURS THAN TO HAVE WHAT YOU HAVE AND IT REALLY BE SOMEONE ELSES. GOOD LUCK AND PUT GOD FIRST.