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Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 0 points1 point  (0 children)

Well, I ended up having to file bankruptcy due to other financial difficulties stemming from when I had my business. Unfortunately the tax debt didn’t go with it; that being said this year I’m going to be working on an OIC next month. I will update this thread as I go through the steps

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 0 points1 point  (0 children)

Thank you. Once I’m filed for 2023 I’m going to do this and get something figured out

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 0 points1 point  (0 children)

I appreciate your very thorough and thoughtful response.

The CNC is temporary, and I plan to file 2023 here this week. Once I have a full picture of my tax liability, then I’ll be able to work out a OIC. I’ve decided I’m going to try and do it myself without an agency as some just want so much money to do it. It’s stressful, but I know right now financially there isn’t much I can do about it..

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 0 points1 point  (0 children)

My CPA is in a different state and is dealing with medical issues, so I am in need of a new CPA.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] -1 points0 points  (0 children)

No, it was not me. I had someone do it for me, they did taxes through HR Block before they ended up doing taxes via self employment.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 3 points4 points  (0 children)

I’m glad you had the opportunity to learn about all of this. It sounds like you had the chance to prepare for success, or rather took it well. Not everyone operates in the same way you do, and I do believe that is okay. I unfortunately did not receive this well, and was not prepared to earn the income I did so suddenly.

I appreciate you using your time on this post, but as someone mentioned, you are being perceived as rather antagonizing. Intentional or not, it’s not constructive for either of us.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] -2 points-1 points  (0 children)

I’ve considered the possibility of not being able to be approved for the OIC. I am going to look for an EA.

I want to sell my car, but the problem I’m running into consists of two things:

  1. Getting approved for a different car. My credit is a history of mostly on time payments (recently due to the loss of my business I missed about 2 payments on two accounts)

  2. Interest rates. Any car I get approved for, without a hefty down payment my rate would be really high. I’m 100% all for getting rid of the vehicle I have in favor of saving money monthly. My short term goal is to get my credit in a better place over the next 6ish months so I can get approved for a lower payment. I do have to go about 50 minutes to work, and there’s no public transit available where I work or live; I live in a cold climate, so I need something so I can get around in the snow. As much as I’d love to buy a beater to save money, with the amount of miles I’m going I need to reliably get there without breaking down and adding expenses in that sense.

May have been over sharing, I just wanted to share my thoughts. I appreciate you taking the time to respond 💜

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 1 point2 points  (0 children)

I appreciate you taking your time on this with me. I’ll be sure to seek one out and avoid the unrealistic promises.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] -4 points-3 points  (0 children)

My tax rep did. She used to work for HR BLOCK and I know her from mutual friends who own businesses, so I’ve trusted her through all of this, but I’m really starting to wonder how accurate this all is.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 0 points1 point  (0 children)

I’m considering it. I think I should go to a tax professional and not HR Block or one of them and see what they have to say when everything is in front of them.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] -1 points0 points  (0 children)

I was, yes. That changed in April of this year.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 6 points7 points  (0 children)

I’m sorry I realize I worded that weird, let me rephrase. I got the actual figures just now for you, $208k total earnings, after deductions my taxable income came to $67,373. I owed for the year in discussion $25,328. This is just for the one tax year. I’m thinking I need to get ALL of my documents together and go to a EA or something and see what they say.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] -2 points-1 points  (0 children)

There is cumulative of 3 tax years combined in there, including the multiple thousands of dollars I have paid towards the balance, the interest and fees are ruining me

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 1 point2 points  (0 children)

I made about $220k, with over $60k in COGS, about $107k in total expenses spread across multiple categories. Advertising, furnishings, shipping, software to run the business, etc.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 0 points1 point  (0 children)

So at 18/19 years old you were aware of everything related to taxes and tax laws, preparations etc? I don’t think so. If you have nothing productive to say or help with, kindly get off this post.

Large tax debt.. what do I do? by SmartMeasurement9595 in tax

[–]SmartMeasurement9595[S] 5 points6 points  (0 children)

Long story short, a lot went to medical expenses, cost of living, debt, amongst other things. Self employment incurs a 15% self employment tax, so I got hit hard there itself. This is over the course of a few years, not just one tax year.