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tough times......should I report income

Discussion in 'Questions and Answers' started by Seeking Answers, Mar 27, 2010.

  1. Seeking Answers

    Seeking Answers New Member

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    I have not filed taxes for the last 3 years....2007, 2008, 2009

    I have not been contacted by the government(IRS) at all.

    I own a business that had employees in 2007 with gross receipts of over 1 mill. There are 1099's for the company totaling under 100,000. How do I know this...........asked for and obtained transcripts for all three years business and personal.

    Never filed because it has taken every penny to stay above water and I didn't have $1000 per year to do my taxes.....plus did I mention I was lazy:up:

    Recently I sought the advise of an accountant who informed me that even though I do not owe taxes for the corporation for 2007, 2008, 2009 that I will be given a penalty of $85 for every month I have not filed per year up to a maximum of $480 a year or $1440.00. This is money I simply do not have.

    So here is my question. There is no 1099's, no w2's, no anything to support any income for 2008 or 2009 both business and personally. Should I file 0 returns for those years??? How would the IRS know any different???

    For 2007 I could easily get a refund personally to more then offset the penalty to the business.

    What should I do?
     
  2. Section126

    Section126 We are better than you. Luxury Box

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    You are going to spend all of that and possibly more "working" this out.

    Might as well pay the fines.

    Unless of course...you don't mind them collecting.

    if you have a business that has a bank account that has a balance...YOU MUST FILE. Period.

    you are asking for trouble if you don't. especially with THIS IRS.
     
  3. BigDogsHunt

    BigDogsHunt Enough talk...prove it!

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    Do you think we are Acorn or something???


    File and properly account for it all!!!!!
     
  4. Seeking Answers

    Seeking Answers New Member

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    I'm gonna not pay anything....its the American way:tongue2:
     
    steveincolorado likes this.
  5. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    Yep, good luck with that.
    I have a friend that got caught in a similar situation.
    He is financially screwed for a long long time. They have their fingers in everything he does.
     
    dolphindebby likes this.
  6. Seeking Answers

    Seeking Answers New Member

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    Who is they...........The IRS

    I will file small returns easily written off.....then I will file Bankruptcy and tell all my creditors to go to hell

    Love America:up:
     
  7. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    Yep, the IRS is correct.

    Do whatchu gotta do. Bankruptcy isnt such a good answer either, but if you have no alternative........
     
  8. Seeking Answers

    Seeking Answers New Member

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    I don't, that is the problem. Times are really bad and the cash is just not flowing in to the business. Getting ready to loose house if I don't do something.

    The interesting thing is you would think the IRS would want you to comply. I simply cannot afford 450 dollars a return......to comply. Then I am going to get penalties when I do not owe anything......and neither does the corporation. If there was help I would have already done it.
     
  9. RGF

    RGF THE FINSTER Club Member

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    I spoke to my accountant recently about a similar situation to yours. He stated that the government has a right to apply hefty fines to individuals or companies that fail to file taxes EVEN IF THEY WERE LEGALLY OWED REFUNDS AND DO NOT ACTUALLY OWE MONEY FOR ANY INCOMES. In other words you would think that the IRS would have more tolerance for anyone not filing taxes if they had indeed over-paid and had a refund allowance. Not the case,my friend. The IRS doesnt care if you owe or the government owes you. YOU MUST file or your financial status for years to come is classified as a NC- 117. Which means you are a Non-Compliant. Not too good on anyones resume,to say the least. Oh,and trying to go bankrupt and opening a new businesss under a different name is no longer a fail-proof idea. Anyone who fails to file,their S.S. # is automatically tagged.

    .I would say this, it would be a good idea to do what it takes ( contact an IRS rep.) and take the penalties. With any luck a payment plan is issued. Its just a suggestion but I must say its a better idea than your recipe for disaster.
     
    Stitches and alen1 like this.
  10. BigDogsHunt

    BigDogsHunt Enough talk...prove it!

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    Who said its the American Way to not file and pay any taxes you owe?

    The American Way is to become educated about your options, and maximize your legal deductions and understand legal methods to minimize your taxable income.

    Avoiding your obligation to FILE is the worst idea ever, especially if you are claiming you cant afford to file. Everyone can afford to file, no one is forcing you to pay someone to do your taxes. You have FREE options, use them.

    This is the perfect example of making excuses which only compounds the problems.....file and be accountable to your actions. Not doing so is a clear detriment to your financial future (Personal and Professional).
     
    RickyBobby and late again like this.
  11. Seeking Answers

    Seeking Answers New Member

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    I was referring to the 48% who don't pay a nickle in taxes.

    I am not avoiding the obligation if I was I wouldn't have started this thread.

    I am trying to see if anyone here has some information that may be beneficial to help me fill the obligation. You talk of free options but stop short of saying what they are.

    I have one post that is of some benefit and that is the rating the guy talks about.....about being non compliant..............that is great infomation (thanks)
     
    BigDogsHunt likes this.
  12. BigDogsHunt

    BigDogsHunt Enough talk...prove it!

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    But they file....the IRS offers free services. You should start there. Sadly, if the IRS mis-informs you could still be liable....but do you have a Lawyer on retainer for your Business? Just saying, if you are a businessman you know yourself that decision comes with risks that you must accept, and avoidance is never the answer. Contact the IRS directly and if you have a Lawyer or tax accountant, use them pro-bono if you can negotiate that, and any monies you get back from IRS after you file and get caught up on past tax years - turn over to them. Set up a payment plan on any monies owed to Lawyer or Tax Acct or IRS.

    Get caught up. Pay any fines you legally owe...you are responsible for getting into this and out of this. You can do it....it will work out in the end. Have the faith, and trust in yourself.
     
    Boik14 likes this.
  13. Seeking Answers

    Seeking Answers New Member

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    I do want to do the right thing, however it has not been easy. Thanks for your insight:up:
     
  14. my 2 cents

    my 2 cents Well-Known Member

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    File the personal as accurate as possible and dissolve the company if you have no assets...you avoid BK and the credit line implication.....if you are still in business....start with a new name, oh and pay your taxes going forward..........................if you have assets....liquidate and/or transfer the assets to a new ownership group that will sell it back to you at cost in a year or two.....good to have a wife sometimes......
     
  15. steveincolorado

    steveincolorado Spook, Storme & Pebbles

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    That is not the american way, the american way is to make as much money, screw anybody that gets in your way.:sad:

    This country is about greed, not everybody, but most. Sorry, but I'm not a big fan of this country at this time. Right now, if I were to win a 100 million lottery, I'd take my money and move to another country. I would donate 1 mil to the Human Society and try to help my family out, but after that, this country hasn't proven to me that I need to spend 1 cent more than I have to.:sad:
     
  16. Seeking Answers

    Seeking Answers New Member

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    Good insight....I appreciate it
     
  17. RickyBobby

    RickyBobby VIP DIY

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    You had a chance to do something...file your taxes on time, you would not have run into this problem.
     
  18. DeDolfan

    DeDolfan Premium Member Luxury Box

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    Better be careful filing BR. If you file for your biz, you may not always wind up being protected personally. What I mean is that if you file just to avoid debt, be very careful of opening another biz under a different name, especially if it's the same kind of biz. All it takes is for one creditor to be able to pierce the corporate veil and you're in deep doo doo as it makes you liable personally for corporate debt. On top of that, criminal charges may be files as well. You may get by if you start a new biz but I wouldn't count on it.
     
  19. KeyFin

    KeyFin Well-Known Member

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    I just completed an eight year battle with the IRS, and believe me when I tell you there is no other entity within this country that makes you feel less proud to be an American than the IRS.

    To make a long story short, my accountant screwed up and mixed my tax ID number with someone else's shortly before I closed my restaurant. In 2003 I had my indivisual tax returns seized with no explaination, and by 2006 I was having paychecks garnished $260 a week without even a warning. I fought this for eight years explaining that I did not owe the taxes, all the while penalties and interest continued to build that eventually equalled more than the principal itself. In the past eight years I promise you that I have no less than 300 hours invested in phone calls, letters, and mostly waiting on hold to be transferred to someone else.

    To top it off, when I settled this late last year the IRS said that since it has been over 36 months since the error they would not refund anything! It's finally straightened out and I was refunded with interest...but I swear I was within an inch of leaving the United States because of how something a six year old could plainly see on paper utterly destroyed my life. I was not even in business for much of the accused usage, they were collecting from another business at the same location, but after hundreds of calls and letters it was like I was speaking to a pack of wolves.

    Do not be so foolish to think that you have any rights as a business owner or even as an American for that matter...the IRS answers to no one and follows a set of rules that would be considered loan sharking and organized crime within any other US entity. If you owe them, pay them now before they destroy your life like they did mine.

    This is not a laughing matter; once they slap leins on all your assets then take the majority of your income, you're f&^ked in every sense of the word.
     
  20. DeDolfan

    DeDolfan Premium Member Luxury Box

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    I feel ya but ultimately, it is the responsibility of the taxpayer to verify all info in the return. The accountants only prepare your taxes and if they make a mistake and you don't catch it, then you made the mistake, not the accountant. I don't really agree with that but that's the way it is. If someone uses a paid preparer then they should have a little bit more recourse. But, tough break for ya and I know that sucks big time.
     

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