October 20, 2025 • 44 mins
TaxTalk4U.com Missed Tax Deadline IRS Deadlines when to file, pay estimated taxes, estimated tax due dates. Getting all your deductions that save you money on taxes. For truckers, business owners or individuals the tax requirements and deadlines. Owner-operators and business owners can file as self-employed business owners. Missed tax deadline IRS penalties, Missed S-Corp or partnership deadline. Settling IRS debt. Bookkeeping made simple to get every deduction.
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Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).
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Episode Transcript
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Speaker 1 (00:00):
The topics and opinions express in the following show are
solely those of the hosts and their guests, and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicitor implies shall be extended to W FOURCY Radio
or its employees are affiliates. Any questions or comments should
be directed to those show hosts. Thank you for choosing
(00:20):
W FOURCY Radio.
Speaker 3 (00:27):
Barry G.
Speaker 2 (00:28):
Fowler EA brings you tax talk for you right here
on W four CY Radio and Talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 3 (00:58):
Barry G.
Speaker 1 (00:59):
Fowler.
Speaker 3 (01:02):
Hey, good morning and welcome.
Speaker 4 (01:05):
It's another great day, you know to be here talking
taxes and uh you know today we're talking about you
missed the tax deadline. You know now what to be
honest with you didn't know show prep just coming out here.
We're just going to wing it today and answer any
questions you have. But first and foremost, you.
Speaker 3 (01:23):
Missed the deadline.
Speaker 4 (01:24):
Now what you know, what are you going to do now? Well,
if the I R S owes you a refund, just
get your taxes filed and you know they're going to
give you the refund and they're going to give you interest. Now,
maybe you missed and you hadn't a filed, not just
twenty twenty four's tax return, twenty freeze tax return, maybe
(01:45):
twenty twenty two's tax return. Well you get those filed
and there's a refund, you're going to get that money. Unfortunately,
go beyond that, and the I R. S Is now
keeping your money. It was your money, but after three
years that money seems to evaporate and go away.
Speaker 3 (02:07):
Now amazing.
Speaker 4 (02:08):
You know, if you owe them money, they're still coming
after their money or your money that you owe them.
But if they owe you, they don't have to pay.
It's not a two way street. It's kind of one way.
It's their way and it's the only way. And that's
you know, per Congress and everything, because hey, they want
(02:29):
you to file, and they want you to file timely,
and then you know they've spent the money anyway, so
you know, hey, they're not getting back. Now that being said,
you know, you can get the refunds and everything, and
they're going to pay the interest on those as well.
Speaker 3 (02:46):
Not as much as what you.
Speaker 4 (02:47):
Would probably make out right now investing elsewhere, but you're
going to get that money back plus refund. A friend
of mine, a client of ours, actually came up over
to us and started using us. Well, the prior firm
that he was using didn't file his twenty three tax
(03:08):
return for both his personal and business. It didn't do
anything for twenty twenty four. They built him quite a bit,
but didn't get anything done. We come to find out
that he's got about forty thousand dollars coming back, which
is really nice, and so you know, unfortunately that means
(03:29):
the IRS has been sitting on that money and he
hasn't had the money to invest or use personally because
it's sitting there at the irs. Well, that is not
the way you want to go, so you never want
to leave the irs. So that kind of money sitting
there even for a year until you file, what you
really want to do is make sure you're doing your
(03:51):
tax planning so that when you file, and hopefully you
file by April fifteenth, or you file by October fifteen,
that maybe there's a little bit of money coming back
to you, or you know, if you're filing by April fifteenth,
maybe you're paying.
Speaker 3 (04:04):
In just a little bit of money. But you don't
want to.
Speaker 4 (04:07):
Be in a situation where you've paid in you know,
ten twenty thirty thousand dollars way too much or even
underpaid by that and then have the IRS just refund
your money, because if you file April fifteenth, they're just
giving you the money that you have there, they're giving
it back no interest. They get to keep that. You know,
in October, yeah, they're going to pay you maybe a
(04:29):
little bit of interest, but they're you know, they've earned
a lot more than what you did because you've had
a whole year that you've been putting this money there
and you haven't earned anything for the money that's sitting
there at the IRS.
Speaker 3 (04:42):
So you know, they're never a.
Speaker 4 (04:44):
Goal to overpay, at least not overpaid by a lot
of money, and it's never a goal to underpay by
a lot of money. You know, you want to make
sure your estimates are right. You want to make sure
you're paying the right amount of money, and then you
can go you know from there. You using that as
an example, you know, you're looking at, you know, somebody
(05:04):
that gave away, you know, twelve or thirteen or fifteen
hundred dollars in interest income, not to mention much more
than that that they probably could have earned.
Speaker 3 (05:12):
On them by themselves.
Speaker 4 (05:14):
Or let's say you got a credit card debt or
something else out there that's now high interest rate, when
you think you could have taken that kind of forty
thousand dollars and paid off quite a bit of debt
and saved you a lot of interest out even on
your credit cards. So you know, those are the kind
of things that you've got to look at and really
really make a decision of, hey, how much money am
(05:37):
I paying in, how much money am I getting back,
and then modify that each year or so that you're
only paying in the right amount of money, especially when
you're in business. So you know, if you're self employed,
you know, running a consulting business, maybe you run an escort,
maybe you run a LLC or multi member partnership. You know,
(05:58):
you got to really look at how much you're paying
in and estimated taxes or you know, if you're an
escort up in your own payroll, how much money are
you paying from there, and you know, run those estimates
and be as close to the amount of money that
you're going to ohe come April fifteenth every single year.
(06:20):
You know, don't just assume and paying a whole bunch.
Speaker 3 (06:23):
Hey, you know this is.
Speaker 4 (06:24):
What I love questions, and if you've got questions, please
send them in. We need as much help today's show
because it's all about you and the questions that you have.
And we got our first question, which from Greg. Hey, great,
do they tax that interest when they keep it? Now
they're not accumulating interests, they're just earning the interest off
(06:47):
the money or using that to pay down debt. So
you know, if you file April fifteenth, then let's just
say you're getting that forty thousand dollars back. They give
you your forty thousand, They keep all the rest of
the money that interest they would have earned or whatever
over the year. There's no tax on it. You're not
getting charged for it. You're they're not even acting as
if you earned it. They earned it or they paid
(07:10):
down of course debt. Wait a minute, we never paid
debt down around here in this country, do we. That's
just an unbeknownst thing here to our government. It's more
like get more in debt, not pay down debt. But
if they pay you the interest, yes, you got to
report that on your tax return. And what you'll see is,
(07:30):
in this client's case, he's going to get about forty
one thousand, five hundred or so dollars back, you know,
in interest, maybe a little.
Speaker 3 (07:39):
Bit more than that.
Speaker 4 (07:42):
So he's going to get tax on that extra you know,
roughly fifteen hundred dollars that he's going to get because
he received it. If they didn't pay you any interest,
you're not going to get a ten ninety nine for
the interest. You don't have to pay tax on it.
So you know you didn't really get it, you didn't
really earn it. So what happens now when you owe
(08:04):
does anybody guess? You know, they charge you penalties. If
it's under nine hundred dollars and you pay it, they're
not going to charge you. So if you filed, you know,
October fifteenth, and you know you got file timely and
you owed nine hundred dollars and you paid it. They're
not going to charge you penalties on that. They're going
to get you with some interest or something, but they're
(08:26):
not going to charge a penalty, which is really a
nice thing. Now any amount over that, then you get
the penalties an interest. If you don't file and you
miss the filing deadline, well then it's penalties after penalties
after penalty irs. Congress loves penalties almost as much as
they love taxing you and I. You know, I'm not
(08:46):
sure which one they love more. I think they get
more kicks out of taxing you and I then they
do out of giving us penalties. But hey, if you
miss the deadline, they're doing something kick you in the
rear end to make sure that you don't do it again.
So you get a failure to file penalty, and then
you get failure to pay penalty, and then they slap
(09:10):
you with interest on the money that you should have paid,
not just from April fifteenth, but then they go back
and look at your estimated tax payments, and you didn't
make your estimated tax payments, so therefore they hit you
with interest on the estimated tax payments that you should
have made, but you didn't make. That all adds up,
(09:30):
you know, if it isn't bad enough that they hit
you with the penalty, and then they hit you with
penalties after penalties, and they continue to accumulate those penalties
for a period of time for the failure to file,
and they hit you each month while you haven't filed,
and then of course they hit you with the penalties
for failure to pay and add to it every month
(09:50):
for a certain number of months out there, and then
they continue to add the interest. So somebody asked me
one day, how to ten thousand turn into twenty thousand
dollars T and I'll use an interest over time. So
you know, you kind of got to think about this.
You know, should I be making sure I make all
my tax payments and estimated tax payments?
Speaker 3 (10:11):
Absolutely?
Speaker 4 (10:13):
And then uh, you know, should I pay this off
sooner rather than later? Yes, if you got the wherewithal
to pay it, yes, you should always step up and
pay it. Have we got some other questions coming in,
We're going to take a short break and then we're
going to start maybe addressing some of those questions. It's
still talking about penalties, and then what can we do
(10:34):
to solve the tax problem before.
Speaker 3 (10:37):
It becomes too late, and we'll do that right after this.
Speaker 2 (10:41):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Fowler will be right back
with tax talk for you. If you own the I
R S or are going through an IRS audit, don't
go at it alone. Called Taxation Solutions tax Relief at
(11:01):
eight eight eight nine three zero one zero one six,
we are your solution for IRS debts, audits, back taxes, garnishments,
leans and levees. Whether you're an individual or business, you
need a solution and a strong, aggressive tax resolution. Don't
(11:21):
let the IRS walk all over you. Stop the IRS
now call eight eight eight nine three zero one zero
one six or go to Taxationsolutions dot net now for
a free no obligation consultation. Let's get back to tax
(11:42):
stock for you with more tax stock once again, here's
your host, Barry G.
Speaker 3 (11:48):
Feller.
Speaker 4 (11:50):
Hey, penalties, penalties, penalties, penalties. Everybody's gotta you know, charge
your penalties. If you're late paying a credit card, they
charge you penalty, and then h charge you interest, and
then they even increase the interest rate. In this case,
we're talking about taxes. And uh, you know, we had
a question from Jeff that came in and kind of
(12:12):
where you're getting there is how much is the penalty
and how long do the IRS charge these penalties if
you fail to file, well, the failure to file penalty
is charge it five percent of your unpaid tax for
each month or part of a month your return is late.
Speaker 3 (12:32):
So the sooner you file, the better. Now, if you've.
Speaker 4 (12:35):
Paid all your taxes and you got a refund, there's
no penalties. Now, this penalty only goes on for five months,
so it caps at twenty five percent. So if you
owed ten thousand dollars, you're going to get a five
percent penalty for five months. Twenty five percent penalty basically,
so another twenty five hundred. So you know, you kind
(12:58):
of got to look at this and say, hey, you know,
I've got to get this thing filed as soon as possible.
Now that goes Also is if you don't file an
extension and all of a sudden you owe money and
you thought you were getting a refund, well, and you
file by October, that's six months, they're going to charge
you that penalty over that period of time because it
(13:19):
was due April fifteenth, and you didn't file for an extension. Now,
remember extension is a time to file, but not a
time to pay. You're still supposed to pay by April fifteenth.
Now what happens also if you fail to pay, in
which you know, they're giving you the failure to file penalty.
I'm based on how much money owe. So again, if
(13:40):
you didn't know anything, you don't get the penalty. The
failure to pay penalty goes right on top of that
failure to file penalty, and it's typically half a percent
of your unpaid tax for each month or part of
a month retax remains unpaid. It continues until either the
tax is paid it hits the maximum cap of twenty
(14:02):
five percent of your unpaid taxes. So that's where we
now got to fifteen thousand dollars off of ten thousand
dollars tax. Now they also have a right to tax
you and increase this penalty up to one percent based
on different situations that you may be in. So you know,
(14:25):
you kind of got to see exactly what the IRS
is doing to you, and then they charge you interest.
Now they don't just charge your interest on that ten
thousand dollars tax, but to make matters worse, they charge
you interest on the tax and the penalties that are
outstanding until it's paid in full. There is no cap
(14:48):
on the interest they're going to charge you. Even when
you're on a payment plan, they continue to charge you
interest on both penalties and the taxes that are owed.
Credible little thing called penalties an interest in how it
accumulates that debt at such a high level. And we
(15:09):
had a great question come in Kevin. He asked, what
if they don't accept your business return but don't tell you,
why do they set all these penalties?
Speaker 3 (15:19):
Well, Kevin, here's the thing.
Speaker 4 (15:21):
The I R S should be telling you and sending
you a letter of exactly why your business return wasn't accepted.
So we're going to make some assumptions here, you know,
or you can ask the next question and tell me
what kind of company you have? Was it a partnership?
Was it an escort? Was a single member LLC? Was
(15:44):
it an ink? How are you set up? But now
I'm going to take some guesses here. So you're Kevin
in company INK and you file for your e I N.
They sent you an AI N letter. The EI N
letter came back and you didn't read it, and it said, hey,
if you want to be an escorp, you got to
file these forms. But right now you are set up
(16:07):
as an eleven twenty It means you are corporation and
it means you pay tax as a corporation. And the
tax form that you have to file was laid out
in the EI in letter and it said you need
to file eleven twenty by March fifteenth of the next year. Well,
you filed an eleven twenty s and it did not
(16:27):
get accepted. Yes, the IRS is now going to charge
you penalties until your corporate return is filed and tax
is paid. Because you're filing an eleven twenty means you
were a c corp and the corporation pays tax, not you.
Speaker 3 (16:43):
It's not a pass through entity.
Speaker 4 (16:45):
However, you could go back and file that eleven twenty
s with saying that this is your first year as
an es corp, saying here's the twenty five point fifty
three here is our letters saying we claim this net
income from the K one on our personal return, and
the I r S will take in the return, not
(17:08):
necessarily accept the return, but will process and then accept
the ESCORP and then accept the es CORP return. There's
little procedures you've got to go through. We can fix
that for you. We can help you with that here
at Taxation Solutions. If you give us a call at
eight eight eight nine three zero one zero one six.
Speaker 3 (17:30):
We'll talk to you about that.
Speaker 4 (17:32):
But you know, we can take care of doing the
return for you and then work on getting that es
CORP status approved as well. So again it's eight eight
eight nine three zero one zero one six. We also
helpe resolve all I r S problems and making sure
that you know we can resolve those issues and hopefully
(17:55):
get rid of some penalties and then get you in
the right plan for your Kevin came back and said
file the escort return the year before and not sure
how things are set up. So Kevin, what I would
say is go back and get that aim letter review it.
We can go back and do a complete tax analysis
(18:17):
for you for your corporation and yourself. We can come
back and refile that ESCORP return with all the attached documents,
asking for grace and guidance from the IRS, and get
that escort status put in place. Now, remember with that
ESCORP hopefully you've been doing payroll for yourself or any
(18:39):
other owners that are in the business that are working
in the business, because you are required to have a
reasonable salary for yourself in the business as well. One
other thing I would warn you if you don't remember
what was in that AI in letter, it gives you
a couple other things that you would need to file.
Speaker 3 (19:00):
Well.
Speaker 4 (19:01):
One of that is payroll taxes, which means it will
tell you if you've got to file nine forty three
nine one, nine forties. Those things are in that letter,
Especially if you put on the SS four when you
applied for that es CORE or I mean you applied
(19:21):
for the employer identification number that you're going to run
payroll sometime in the next year. They automatically assume that
you should be filing these forms, even if it's zero.
The IRS requires those to be filed as well, and
it takes them a little while to start generating penalties
and requests for those forms, but you would have to
(19:43):
watch out for those as well, so you know, it
becomes one of those difficult things that you need to
make sure of. When you're setting up your company, the
very first.
Speaker 3 (19:57):
Thing you've done is one you've.
Speaker 4 (20:00):
Went to the Secretary of State's office in your state,
and you set up Kevin in Company, Inc. Or Kevin
in Company LLC. Or Whidget's Inc. Whichet's LLC.
Speaker 3 (20:14):
And you fill out. After you get.
Speaker 4 (20:18):
That designation and everything, then you turn around and apply
for your employer Identification number. So once through the state,
once through federal government, and once you have your company name,
you file the SS four you get your employer Identification number,
and then it becomes one of those most important things.
Read that letter, Read what the IRS sends you, Read
(20:41):
what the IRS told you. If you did it online,
make sure that you're following through. We tell people all
the time. Sometimes help seems expensive, but it's more expensive
sometimes to go to loan and make a mess of
things and then have to go back and fix it.
So reading becomes a very When you do have somebody
(21:01):
working with you to file your tax return, give them
a copy of that letter. They should ask for that,
regardless when you first.
Speaker 3 (21:08):
Sign on with them. Here we get some more questions
coming in.
Speaker 4 (21:11):
We're going to continue answering those questions, and then we're
going to get back to talking about resolving that tax
issue that you created by filing late. Do that right
after the spring.
Speaker 2 (21:21):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax.
Speaker 3 (21:29):
Talk for you.
Speaker 2 (21:32):
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(22:17):
Let's get back to tax Stock for you with more
tax talk, and once again here's your host, Barry G.
Speaker 1 (22:24):
Fallon.
Speaker 4 (22:27):
Hey, you know again, if you've got questions, you know,
feel free to throw the men to us. We're going
to answer those questions. You're helping the show. You guys
are as much a part of the show as I am.
What do you guys need to know? How can we
help you. How can we resolve your tax problems? Or
maybe how can we help you get the most out
of your tax return and get the best refund and
(22:49):
get the money back that you're deserving. Right man, Maybe
you just messed up and you file late and you oh,
so now we got to resolve the tax issue. So
don't be afraid to give us a call. I get
a free consultation. Let us see what we can do
for you and how we can help you. Again, it's
eight eight eight nine three zero one zero one six
(23:09):
again eight eight eight nine three zero one zero one six.
Speaker 3 (23:13):
And we've got a question in from Leslie. Yep.
Speaker 4 (23:15):
We've been talking about the ZIM letters. She's asking if
you missed the letter and don't know what the corporation
is set up as, how can you figure it out?
One you've Hopefully, if you've kept the letter, you can
go back and try to find it. I know what
happens to a lot of IRS correspondence. Sometimes people just
throw them out and they don't pay attention. Or even
(23:39):
if you had a registered agent or somebody that filed
for you, they maybe gotten that letter and you'll be
able to contact them and they should be able to say, yeah,
I got a copy of it and give it to
you if you've done it all yourself and you lost
it or just have no idea where it is, the
next best thing would be to call the IRS. Be
ready to be able to give them that employer identification number,
(24:03):
which sure you have, give them the employer address, make
sure is the correct address for the business, and then
your information and what your ownership or work position is
within the company. Now the IRS will give you all
the information you need of what, where, when and why
(24:26):
you need to file, so they would be able to
answer the question for you saying, hey, your LLC was
set up as a single member sole proprietorship and therefore
you file on schedule see of your personal tax return
or it said that you filed as a multi member LLC.
(24:46):
It should be filing a partnership return and here's your deadline.
Speaker 3 (24:50):
Now.
Speaker 4 (24:51):
If you do call the I R S and ask
those a couple of things of how should I be filing,
make sure they look at everything reponsible to file. Payroll
texture maybe your trucking company. Are you required to file
the heavy hauling Heavy Highway Hauling Tax Return twenty two
ninety which is due in July of every year. IRS
(25:15):
may have those filing.
Speaker 3 (25:17):
Requirements down for you.
Speaker 4 (25:18):
Well, now, once you figure all that out in talking
with them, if you're not running payroll and you have
no employees and they say you have payroll taxes to
be filed, talk to the agent on the phone right
there and tell them I don't have employees, I am
not running payroll. They can remove that payroll filing requirement
(25:41):
for you and remove all the returns that have not
been filed.
Speaker 3 (25:46):
Now, if they've done substitute.
Speaker 4 (25:47):
For returns, you may have to go back and do
amended returns or do actual returns and show that it
was zero's let's just talk to the agent out there.
They're going to give you that information now. If you
don't have three four hours to sit on the phone
and wait for the IRS right now, maybe longer than that.
With only twenty five percent of their workforce working, you know,
(26:11):
we can do a complete tax analysis for you, for
you and your business and make sure that everything is correct,
which isn't a bad thing, and it's relatively expensive. Right now,
we have discounted tax analysis running for people currently across
the board. It's Taxation Solutions DOT net, or you can
(26:32):
just give us a call at eight eight eight nine
three zero one zero one six Again eight eight nine
three zero one zero one six give us a call.
We'll do that tax analysis for you. It's very deeply
discounted just to be able to help you. And just
make sure you reference the show Tax Talk.
Speaker 3 (26:52):
For You Andy.
Speaker 4 (26:53):
While we're talking about tax Talk for you, if you
go to tax Talk the number four letter you dot com,
you can follow us over there, follow us on Facebook,
and never ever miss an episode on for Tax Talk
for You dot com. I W four c Y Radio,
which we're here every Monday at ten am Eastern time.
(27:17):
But if you follow us, you'll never miss a show,
which is the best thing for you if you need
information about taxes. And we have open forums, so therefore,
if you have questions, we're going to answer those questions
that help you out. We have a question here from
looks like Joey heard a rumor that the I R
(27:39):
s will actually forgive taxes. Well, the answer to that is, yeah,
they do. If you can get through ten years, yeah,
ten years without the IRS doing elections and leving your bank.
Speaker 3 (27:52):
Account or we're doing a wage garnishment, or.
Speaker 4 (27:56):
If you're in social security, social security or pension, they
can harnish those as well. But in general, the IRS
has ten years to collect on unpaid TAKS debt. After that,
the debt is wipe clean from the books. The IRS
just writes it off. Now that's the ten year statute
of limitations. Now ten years isn't just ten years, So
(28:19):
ten years can be extended. So depending on if you
file for like a CDP hearing blacks and new process hearing,
you filed for non collectible status.
Speaker 3 (28:30):
Well anything is pending.
Speaker 4 (28:32):
It stops that collection activity, stops the statute of limitations
from running.
Speaker 3 (28:38):
Now that's statute of.
Speaker 4 (28:40):
Ten years is ten years from the day that you
file in the return accepted. So yes, if you filed
October fifteenth, twenty twenty four, and you owed ten twenty
fifty thousand dollars in October fifteenth of twenty thirty four,
if you got away without paying any that debt plus
(29:01):
penalties plus interest, it will all go away. Unless you
filed for offering compromise CEDP hearing non collectible status, then
that time period is going to continue to hold the
statute of limitations. So let's say you decided to file
for an offering compromise, I'm back tax debt, and it
(29:23):
sits out there and it's processed for let's say a year,
your statute limitations gets extended by that year. It could
be longer than that because it may take them two
or three more months to kick it out of the
offer status, and so then it's fourteen to fifteen months
that it's extended by. So you know, you got to
(29:46):
not just look at the time period, but how all
the different extensions to that statute of limitations. But if
you do nothing in the irs, you know, does it's
whatever it's going to do over the ten years and
you managed to ignore them, ignore them. They take a
little bit of money because they leve at your bank
account or you're not working in a finally levy against
(30:08):
Social Security and you let that role. Eventually it's going
to you know, that's going to fall off unpaid unless
the collections from Social Security is enough to.
Speaker 3 (30:18):
Pay it off.
Speaker 4 (30:19):
Then it's going to go away anyway, because you paid
it off. But if they happen to levey your bank
accounts or your pension or your IRA's or your four
to oh one k's, then you know you're really out
of luck, it's getting getting paid.
Speaker 3 (30:33):
You know.
Speaker 4 (30:34):
Yes, I've seen quite a few people go through and
work the system to get to the statute of limitations.
And we've had a lot of people that come to
us and we do tax analysis. And one of the
things that we're looking at when we do our tax
analysis is one, of course, have they filed everything? Have
they filed it correctly and timely? What penalties can we remove?
(30:57):
And then when is the statute of limitations running? And
then we go from there and look at what is
the best solution. So solutions to tax problems come in
various different plans and ideas. You know, the whole goal
is to reduce the debt down as much as we
(31:18):
can to be either affordable or to go away. So
you just filed this year, but you have other years
that you filed for in the past. Now, how do
you get this debt to go away? Well, you sit
and wait ten years? Statue of limitations right now? Okay,
maybe you can make it, but maybe you can't. What
are the true in real options? And where do you
(31:42):
go from here? You've seen it accumulate. You see the
debt get worse and worse. Now what do you need
to do to put a solution to your tax problem
once and for all. Hey, it's anybody's guess, but I know.
And right after we take this quick break, I'm gonna
give you some hints on what you can do. What
(32:03):
we can do solve your tax problem with the IRS.
We'll do that right after this.
Speaker 2 (32:09):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family. Stop
spending time doing paperwork. Go to Trucker tax tools dot
(32:29):
com a solution filled specifically for truckers. Trucker tax tools
dot Com makes your life run smoothly. Let's get back
to tax stock for you with more tax stock once again,
here's your host, Barry G.
Speaker 3 (32:47):
Fowler.
Speaker 4 (32:50):
Hey, you know a great way to end that last segment. Hey,
what's going to be a solution to your problem?
Speaker 3 (32:55):
Hey?
Speaker 4 (32:56):
But before I get into that, I had a question
from Jeremy what triggers the IRS to audit you? Because
I am going through an audit and don't know why
it was triggered. Well, without looking at your return, I
couldn't tell you. But the number one reason is underreporting
your income. So the I r S gets a lot
of income forms ten ninety nine's, W two's ten ninety
(33:20):
nine S, house sales, brokerage transactions. You know, any of
these things you have to report on your tax return.
These are all income, So any income you're earning, if
you don't report all your income, it's an easy trigger
for the I r S.
Speaker 3 (33:37):
And sometimes it's a correspondence out it. Other times it's
a full fledge audit that depends on what else is
on your return.
Speaker 4 (33:43):
So if you've taken excess business seductions, you know you
may get that full fledged audit because you underreported your
income where it may have flown floated right underneath the radar.
If you didn't do that, nobody knows. But the IRS
right now concentrates mostly on those earning more than two
(34:04):
hundred thousand, But if you are a schedule C you're
more apt to get audited as well, because, in my opinion,
the IRS thinks every business owner that reports on a
schedule CE lie sheets and steals and doesn't report all
their cash income everything else. So make sure that you're
reporting all your income. And take all legit deductions that
(34:28):
you can find, and that becomes really really important. So
how do we solve your IRS problems? Well, we all
hear on the radio and then offers and compromise that
means you settled your debt for less than so. And
it always makes it sound like everybody qualifies, Well not
everybody qualifies. If you can afford to pay. You can't
(34:50):
qualify even if you can't afford in your eyes, if
you can afford to pay in the IRS's eyes, because
they have different standards than you do or I do,
because they look at what is national standards. National standards
gives you a certain amount of money you don't exceed
for you know, housing and utilities. You know national standards
(35:15):
for food, and you know whatnot over there, national standards
for you know what your car payment cannot exceed or
car expenses cannot exceed. You know, school expenses for your kids,
whether they're in private school for high school or elementary
(35:37):
or middle school does not get included.
Speaker 3 (35:40):
There.
Speaker 4 (35:42):
Tuition, college tuition for your older kids, that does not
get included in any way, shape or form, and that
kind of amazing the government has. It's a two way street.
You failed a fast food for college, and your income
has to be counted for them even though they're over eighteen.
But yet when you have of IRS problems, they can't
(36:02):
count college tuition into your equation to set all your
tax Who wrote that in Congress? You know, it's just
their interpretation of what's right what's wrong. You know you
can only have two cars. If you've got cars for
your other kids and they're owned outright, they're considered assets
and you should sell them.
Speaker 3 (36:22):
So offering compromise isn't right.
Speaker 4 (36:23):
For everybody, and that's something we've got to go sit
down and go through a complete analysis. You can go
through and do an installment agreement. Most installment agreements that
the IRIS is looking to do is a full pay
when you call them, that's what they're going to give you.
Speaker 3 (36:38):
Now, you might be able to.
Speaker 4 (36:39):
Qualify for a partial pay installment agreement, meaning you're going
to pay less than what you owe over a period
of time, but you're going to pay now that they're
a little bit looser on the standards, you don't have
to meet the national standard. Your other expenses and stuff
are going to be included at least during the time
period that you're making these payments or at least the
time period that car payment and stuff is going to
(37:01):
be around, so be able to go possibly partial pay
installment agreement, and then maybe it's the non collectible status
and that's where you don't pay anything as long as
your income doesn't increase. Now, they may look at it
in a couple of years, and that's fine. If your
income hasn't changed, you're going to stay in that non
(37:22):
collectible status. Now, which one's right. Well, first thing, first,
first thing we're going to do is sit down and
look at what you owe, how much you owe, what
the statute of limitations are. Maybe you have a year
or two or some that are showing up in about
four to six months, that's a statute that's going to
run out. On that being the case, we may not
(37:43):
want a solution right away, or we might just go
after a partial pay installment agreement and let small payments
go and then that debt falls off. But we definitely
don't want to do anything to extend the statute of limitations,
and we don't necessarily want to file that offering compromise
right away because it starts extending that statute of limitations. Now,
(38:04):
the other fault with this offering compromise is it also
has a five year period of full compliance. That means
five years from when it's accepted. So if you stop
the statute of limitations running today and filing by filing
an offering compromise and they process that in a year,
you have from today until they accepted for another five
(38:28):
years after that that you've got to be one hundred
percent in compliance. And after that five you know, if
you're sometime during that five years you fail to stay
in compliance, all the debt comes flowing back with the
original statue of limitations starting from there, so wherever you
were in your statutes, it picks up. So sometimes that
(38:52):
is not the best course of action to take, especially
if you know for a fact that there's no way
you're going to stay one hundred percent in compliance with
the tax laws. So sometimes that partial pay installment agreement
works better. Sometimes that non collectible status, you know, works better.
Sometimes that full pay installment agreement is just the only
(39:13):
option for you. But it's one of those things that
we can sit down and look at doing and we
see this a lot for truckers, and we see this
a lot for small business owners, you know, across the
board that get into some small problems and it becomes
larger problems. And what's going to be the solution. Well,
you know, if you if you call up in one
of those radio ads tv ads, they're going to tell
(39:36):
you you're going to qualify for an offering compromise and
get you to sign up. But the whole thing they
said was before that possibly maybe nothing's for certain. It
depends on whether the IRS will accept it all excuses.
That's why sometimes it's best to go sit down and
go through a complete tax analysis where we can actually
design the program to say, hey, you're going to qualify
(39:58):
based on this or that, and then here's what the
cost is to get you into this program. And whether
you go with us or not, from that standpoint, at
least you are armed with the knowledge to be able
to determine what route you need to go to put
the best solution in place for you. Now we've even
(40:19):
told some people, hey, this is easy enough. You should
be able to do this, this, and this yourself and
get your tax problem resolved. We handle everybody case by case.
There is no cookie cutter to this. There are certain
people that we can look at and say today don't
qualify for an offering compromise. But when we get in it,
(40:40):
they left out a few things that we really needed
because they didn't think about them. And then we change
one or two things that they're doing in their life,
and all of a sudden they qualify to buy on
offer and compromise and settle a million dollars Taxidad or
(41:00):
somebody for far less than what they're going to owe,
because we are able to make changes to their life
to qualify better in the offering compromising something they can afford.
Danny Ass How long does tax analysis take? Well, there's
two steps to it. Now. The first step is going
(41:21):
to be calling the irs. We always put into our
tax analysis a hold with the IRS, and so we
get the hold, we get them to send us the
information about the debts that you owe, and then we
wait for the IRS to process that power of attorney
so our system can pull everything else from the IRS
(41:43):
in about two weeks, where we get all the c
said dates and everything else that's there, which is the
Statute of limitation dates and any other information that we
could not get from a revenue agent on the phone.
Speaker 3 (41:58):
So about two to.
Speaker 4 (41:59):
Three weeks and we've got all the stuff here to
be able to tell you where we go from there.
Tax analysis costs will vary, but we're right now we're
doing fifty percent of so call us at eight eight
eight nine three zero one zero one six jump in
today and take advantage of that. Harriet asked, does this
work for a small corp as well? Well, Harry, depends
(42:24):
on how you're reporting, and if you're reporting on eleven twenty, yes,
we can do certain things for you there. If you're
reporting as an S corp, then all the taxes actually
flow to your personal and yes, we take care of
you personally, and then we can do a tax analysis
for both of you and the business out there as well. Now,
(42:45):
payroll taxes, that's a whole nother story. We did a
whole segment on payroll taxes. So if you go look
at our podcasts, you can go to tax Talk for
you and do a search over there and you can
find a podcast about payroll taxes and how to deal
with those. Well, a matter of fact, you might have
another great discussion about payroll taxes here out there. And
(43:07):
our last question here, will this information bring up any
issues with the irs?
Speaker 3 (43:12):
And no, not at all.
Speaker 4 (43:14):
Hey join us every Monday ten am here Eastern time
on W four CRY Radio at tax Talk for You
dot Com.
Speaker 3 (43:24):
Again.
Speaker 4 (43:24):
It's tax Talk the number four letter dot com and
we'll see you every Monday right here again ten am
W four c I Radio.
Speaker 3 (43:34):
Don't miss it.
Speaker 4 (43:35):
Follow us on Facebook, follow us on Instagram, follow us
on tax Talk for you dot Com.
Speaker 3 (43:43):
Have a god bless glorious week. We'll see you next week.
Speaker 2 (43:47):
Are you an individual or business that wants to understand
taxes and how they affect you? Are you looking for
specific tax advice for self employed business owners in truckers?
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some relief,
(44:08):
then you need Tax Talk for You, hosted by tax
and trucker expert Barry G. Fowler EA. Tune in ten
am Eastern time every Monday right here on W four
CY Radio and Talk for TV. Don't forget to check
this and past episodes at tax talkforu dot com. See
(44:29):
you next week at W four cy dot com.
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(00:20):
W FOURCY Radio.
Speaker 3 (00:27):
Barry G.
Speaker 2 (00:28):
Fowler EA brings you tax talk for you right here
on W four CY Radio and Talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 3 (00:58):
Barry G.
Speaker 1 (00:59):
Fowler.
Speaker 3 (01:02):
Hey, good morning and welcome.
Speaker 4 (01:05):
It's another great day, you know to be here talking
taxes and uh you know today we're talking about you
missed the tax deadline. You know now what to be
honest with you didn't know show prep just coming out here.
We're just going to wing it today and answer any
questions you have. But first and foremost, you.
Speaker 3 (01:23):
Missed the deadline.
Speaker 4 (01:24):
Now what you know, what are you going to do now? Well,
if the I R S owes you a refund, just
get your taxes filed and you know they're going to
give you the refund and they're going to give you interest. Now,
maybe you missed and you hadn't a filed, not just
twenty twenty four's tax return, twenty freeze tax return, maybe
(01:45):
twenty twenty two's tax return. Well you get those filed
and there's a refund, you're going to get that money. Unfortunately,
go beyond that, and the I R. S Is now
keeping your money. It was your money, but after three
years that money seems to evaporate and go away.
Speaker 3 (02:07):
Now amazing.
Speaker 4 (02:08):
You know, if you owe them money, they're still coming
after their money or your money that you owe them.
But if they owe you, they don't have to pay.
It's not a two way street. It's kind of one way.
It's their way and it's the only way. And that's
you know, per Congress and everything, because hey, they want
(02:29):
you to file, and they want you to file timely,
and then you know they've spent the money anyway, so
you know, hey, they're not getting back. Now that being said,
you know, you can get the refunds and everything, and
they're going to pay the interest on those as well.
Speaker 3 (02:46):
Not as much as what you.
Speaker 4 (02:47):
Would probably make out right now investing elsewhere, but you're
going to get that money back plus refund. A friend
of mine, a client of ours, actually came up over
to us and started using us. Well, the prior firm
that he was using didn't file his twenty three tax
(03:08):
return for both his personal and business. It didn't do
anything for twenty twenty four. They built him quite a bit,
but didn't get anything done. We come to find out
that he's got about forty thousand dollars coming back, which
is really nice, and so you know, unfortunately that means
(03:29):
the IRS has been sitting on that money and he
hasn't had the money to invest or use personally because
it's sitting there at the irs. Well, that is not
the way you want to go, so you never want
to leave the irs. So that kind of money sitting
there even for a year until you file, what you
really want to do is make sure you're doing your
(03:51):
tax planning so that when you file, and hopefully you
file by April fifteenth, or you file by October fifteen,
that maybe there's a little bit of money coming back
to you, or you know, if you're filing by April fifteenth,
maybe you're paying.
Speaker 3 (04:04):
In just a little bit of money. But you don't
want to.
Speaker 4 (04:07):
Be in a situation where you've paid in you know,
ten twenty thirty thousand dollars way too much or even
underpaid by that and then have the IRS just refund
your money, because if you file April fifteenth, they're just
giving you the money that you have there, they're giving
it back no interest. They get to keep that. You know,
in October, yeah, they're going to pay you maybe a
(04:29):
little bit of interest, but they're you know, they've earned
a lot more than what you did because you've had
a whole year that you've been putting this money there
and you haven't earned anything for the money that's sitting
there at the IRS.
Speaker 3 (04:42):
So you know, they're never a.
Speaker 4 (04:44):
Goal to overpay, at least not overpaid by a lot
of money, and it's never a goal to underpay by
a lot of money. You know, you want to make
sure your estimates are right. You want to make sure
you're paying the right amount of money, and then you
can go you know from there. You using that as
an example, you know, you're looking at, you know, somebody
(05:04):
that gave away, you know, twelve or thirteen or fifteen
hundred dollars in interest income, not to mention much more
than that that they probably could have earned.
Speaker 3 (05:12):
On them by themselves.
Speaker 4 (05:14):
Or let's say you got a credit card debt or
something else out there that's now high interest rate, when
you think you could have taken that kind of forty
thousand dollars and paid off quite a bit of debt
and saved you a lot of interest out even on
your credit cards. So you know, those are the kind
of things that you've got to look at and really
really make a decision of, hey, how much money am
(05:37):
I paying in, how much money am I getting back,
and then modify that each year or so that you're
only paying in the right amount of money, especially when
you're in business. So you know, if you're self employed,
you know, running a consulting business, maybe you run an escort,
maybe you run a LLC or multi member partnership. You know,
(05:58):
you got to really look at how much you're paying
in and estimated taxes or you know, if you're an
escort up in your own payroll, how much money are
you paying from there, and you know, run those estimates
and be as close to the amount of money that
you're going to ohe come April fifteenth every single year.
(06:20):
You know, don't just assume and paying a whole bunch.
Speaker 3 (06:23):
Hey, you know this is.
Speaker 4 (06:24):
What I love questions, and if you've got questions, please
send them in. We need as much help today's show
because it's all about you and the questions that you have.
And we got our first question, which from Greg. Hey, great,
do they tax that interest when they keep it? Now
they're not accumulating interests, they're just earning the interest off
(06:47):
the money or using that to pay down debt. So
you know, if you file April fifteenth, then let's just
say you're getting that forty thousand dollars back. They give
you your forty thousand, They keep all the rest of
the money that interest they would have earned or whatever
over the year. There's no tax on it. You're not
getting charged for it. You're they're not even acting as
if you earned it. They earned it or they paid
(07:10):
down of course debt. Wait a minute, we never paid
debt down around here in this country, do we. That's
just an unbeknownst thing here to our government. It's more
like get more in debt, not pay down debt. But
if they pay you the interest, yes, you got to
report that on your tax return. And what you'll see is,
(07:30):
in this client's case, he's going to get about forty
one thousand, five hundred or so dollars back, you know,
in interest, maybe a little.
Speaker 3 (07:39):
Bit more than that.
Speaker 4 (07:42):
So he's going to get tax on that extra you know,
roughly fifteen hundred dollars that he's going to get because
he received it. If they didn't pay you any interest,
you're not going to get a ten ninety nine for
the interest. You don't have to pay tax on it.
So you know you didn't really get it, you didn't
really earn it. So what happens now when you owe
(08:04):
does anybody guess? You know, they charge you penalties. If
it's under nine hundred dollars and you pay it, they're
not going to charge you. So if you filed, you know,
October fifteenth, and you know you got file timely and
you owed nine hundred dollars and you paid it. They're
not going to charge you penalties on that. They're going
to get you with some interest or something, but they're
(08:26):
not going to charge a penalty, which is really a
nice thing. Now any amount over that, then you get
the penalties an interest. If you don't file and you
miss the filing deadline, well then it's penalties after penalties
after penalty irs. Congress loves penalties almost as much as
they love taxing you and I. You know, I'm not
(08:46):
sure which one they love more. I think they get
more kicks out of taxing you and I then they
do out of giving us penalties. But hey, if you
miss the deadline, they're doing something kick you in the
rear end to make sure that you don't do it again.
So you get a failure to file penalty, and then
you get failure to pay penalty, and then they slap
(09:10):
you with interest on the money that you should have paid,
not just from April fifteenth, but then they go back
and look at your estimated tax payments, and you didn't
make your estimated tax payments, so therefore they hit you
with interest on the estimated tax payments that you should
have made, but you didn't make. That all adds up,
(09:30):
you know, if it isn't bad enough that they hit
you with the penalty, and then they hit you with
penalties after penalties, and they continue to accumulate those penalties
for a period of time for the failure to file,
and they hit you each month while you haven't filed,
and then of course they hit you with the penalties
for failure to pay and add to it every month
(09:50):
for a certain number of months out there, and then
they continue to add the interest. So somebody asked me
one day, how to ten thousand turn into twenty thousand
dollars T and I'll use an interest over time. So
you know, you kind of got to think about this.
You know, should I be making sure I make all
my tax payments and estimated tax payments?
Speaker 3 (10:11):
Absolutely?
Speaker 4 (10:13):
And then uh, you know, should I pay this off
sooner rather than later? Yes, if you got the wherewithal
to pay it, yes, you should always step up and
pay it. Have we got some other questions coming in,
We're going to take a short break and then we're
going to start maybe addressing some of those questions. It's
still talking about penalties, and then what can we do
(10:34):
to solve the tax problem before.
Speaker 3 (10:37):
It becomes too late, and we'll do that right after this.
Speaker 2 (10:41):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Fowler will be right back
with tax talk for you. If you own the I
R S or are going through an IRS audit, don't
go at it alone. Called Taxation Solutions tax Relief at
(11:01):
eight eight eight nine three zero one zero one six,
we are your solution for IRS debts, audits, back taxes, garnishments,
leans and levees. Whether you're an individual or business, you
need a solution and a strong, aggressive tax resolution. Don't
(11:21):
let the IRS walk all over you. Stop the IRS
now call eight eight eight nine three zero one zero
one six or go to Taxationsolutions dot net now for
a free no obligation consultation. Let's get back to tax
(11:42):
stock for you with more tax stock once again, here's
your host, Barry G.
Speaker 3 (11:48):
Feller.
Speaker 4 (11:50):
Hey, penalties, penalties, penalties, penalties. Everybody's gotta you know, charge
your penalties. If you're late paying a credit card, they
charge you penalty, and then h charge you interest, and
then they even increase the interest rate. In this case,
we're talking about taxes. And uh, you know, we had
a question from Jeff that came in and kind of
(12:12):
where you're getting there is how much is the penalty
and how long do the IRS charge these penalties if
you fail to file, well, the failure to file penalty
is charge it five percent of your unpaid tax for
each month or part of a month your return is late.
Speaker 3 (12:32):
So the sooner you file, the better. Now, if you've.
Speaker 4 (12:35):
Paid all your taxes and you got a refund, there's
no penalties. Now, this penalty only goes on for five months,
so it caps at twenty five percent. So if you
owed ten thousand dollars, you're going to get a five
percent penalty for five months. Twenty five percent penalty basically,
so another twenty five hundred. So you know, you kind
(12:58):
of got to look at this and say, hey, you know,
I've got to get this thing filed as soon as possible.
Now that goes Also is if you don't file an
extension and all of a sudden you owe money and
you thought you were getting a refund, well, and you
file by October, that's six months, they're going to charge
you that penalty over that period of time because it
(13:19):
was due April fifteenth, and you didn't file for an extension. Now,
remember extension is a time to file, but not a
time to pay. You're still supposed to pay by April fifteenth.
Now what happens also if you fail to pay, in
which you know, they're giving you the failure to file penalty.
I'm based on how much money owe. So again, if
(13:40):
you didn't know anything, you don't get the penalty. The
failure to pay penalty goes right on top of that
failure to file penalty, and it's typically half a percent
of your unpaid tax for each month or part of
a month retax remains unpaid. It continues until either the
tax is paid it hits the maximum cap of twenty
(14:02):
five percent of your unpaid taxes. So that's where we
now got to fifteen thousand dollars off of ten thousand
dollars tax. Now they also have a right to tax
you and increase this penalty up to one percent based
on different situations that you may be in. So you know,
(14:25):
you kind of got to see exactly what the IRS
is doing to you, and then they charge you interest.
Now they don't just charge your interest on that ten
thousand dollars tax, but to make matters worse, they charge
you interest on the tax and the penalties that are
outstanding until it's paid in full. There is no cap
(14:48):
on the interest they're going to charge you. Even when
you're on a payment plan, they continue to charge you
interest on both penalties and the taxes that are owed.
Credible little thing called penalties an interest in how it
accumulates that debt at such a high level. And we
(15:09):
had a great question come in Kevin. He asked, what
if they don't accept your business return but don't tell you,
why do they set all these penalties?
Speaker 3 (15:19):
Well, Kevin, here's the thing.
Speaker 4 (15:21):
The I R S should be telling you and sending
you a letter of exactly why your business return wasn't accepted.
So we're going to make some assumptions here, you know,
or you can ask the next question and tell me
what kind of company you have? Was it a partnership?
Was it an escort? Was a single member LLC? Was
(15:44):
it an ink? How are you set up? But now
I'm going to take some guesses here. So you're Kevin
in company INK and you file for your e I N.
They sent you an AI N letter. The EI N
letter came back and you didn't read it, and it said, hey,
if you want to be an escorp, you got to
file these forms. But right now you are set up
(16:07):
as an eleven twenty It means you are corporation and
it means you pay tax as a corporation. And the
tax form that you have to file was laid out
in the EI in letter and it said you need
to file eleven twenty by March fifteenth of the next year. Well,
you filed an eleven twenty s and it did not
(16:27):
get accepted. Yes, the IRS is now going to charge
you penalties until your corporate return is filed and tax
is paid. Because you're filing an eleven twenty means you
were a c corp and the corporation pays tax, not you.
Speaker 3 (16:43):
It's not a pass through entity.
Speaker 4 (16:45):
However, you could go back and file that eleven twenty
s with saying that this is your first year as
an es corp, saying here's the twenty five point fifty
three here is our letters saying we claim this net
income from the K one on our personal return, and
the I r S will take in the return, not
(17:08):
necessarily accept the return, but will process and then accept
the ESCORP and then accept the es CORP return. There's
little procedures you've got to go through. We can fix
that for you. We can help you with that here
at Taxation Solutions. If you give us a call at
eight eight eight nine three zero one zero one six.
Speaker 3 (17:30):
We'll talk to you about that.
Speaker 4 (17:32):
But you know, we can take care of doing the
return for you and then work on getting that es
CORP status approved as well. So again it's eight eight
eight nine three zero one zero one six. We also
helpe resolve all I r S problems and making sure
that you know we can resolve those issues and hopefully
(17:55):
get rid of some penalties and then get you in
the right plan for your Kevin came back and said
file the escort return the year before and not sure
how things are set up. So Kevin, what I would
say is go back and get that aim letter review it.
We can go back and do a complete tax analysis
(18:17):
for you for your corporation and yourself. We can come
back and refile that ESCORP return with all the attached documents,
asking for grace and guidance from the IRS, and get
that escort status put in place. Now, remember with that
ESCORP hopefully you've been doing payroll for yourself or any
(18:39):
other owners that are in the business that are working
in the business, because you are required to have a
reasonable salary for yourself in the business as well. One
other thing I would warn you if you don't remember
what was in that AI in letter, it gives you
a couple other things that you would need to file.
Speaker 3 (19:00):
Well.
Speaker 4 (19:01):
One of that is payroll taxes, which means it will
tell you if you've got to file nine forty three
nine one, nine forties. Those things are in that letter,
Especially if you put on the SS four when you
applied for that es CORE or I mean you applied
(19:21):
for the employer identification number that you're going to run
payroll sometime in the next year. They automatically assume that
you should be filing these forms, even if it's zero.
The IRS requires those to be filed as well, and
it takes them a little while to start generating penalties
and requests for those forms, but you would have to
(19:43):
watch out for those as well, so you know, it
becomes one of those difficult things that you need to
make sure of. When you're setting up your company, the
very first.
Speaker 3 (19:57):
Thing you've done is one you've.
Speaker 4 (20:00):
Went to the Secretary of State's office in your state,
and you set up Kevin in Company, Inc. Or Kevin
in Company LLC. Or Whidget's Inc. Whichet's LLC.
Speaker 3 (20:14):
And you fill out. After you get.
Speaker 4 (20:18):
That designation and everything, then you turn around and apply
for your employer Identification number. So once through the state,
once through federal government, and once you have your company name,
you file the SS four you get your employer Identification number,
and then it becomes one of those most important things.
Read that letter, Read what the IRS sends you, Read
(20:41):
what the IRS told you. If you did it online,
make sure that you're following through. We tell people all
the time. Sometimes help seems expensive, but it's more expensive
sometimes to go to loan and make a mess of
things and then have to go back and fix it.
So reading becomes a very When you do have somebody
(21:01):
working with you to file your tax return, give them
a copy of that letter. They should ask for that,
regardless when you first.
Speaker 3 (21:08):
Sign on with them. Here we get some more questions
coming in.
Speaker 4 (21:11):
We're going to continue answering those questions, and then we're
going to get back to talking about resolving that tax
issue that you created by filing late. Do that right
after the spring.
Speaker 2 (21:21):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax.
Speaker 3 (21:29):
Talk for you.
Speaker 2 (21:32):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
bookkeeping and taxes. No matter what level trucker you are.
Life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Trucker Tax Tools makes your life run smoothly. Go to
(21:54):
Trucker Tax Tools dot com for a free guide that
will give you the tools to worry about your taxes again.
Call Trucker Tax Tools eight seven seven nine six six
two four seven seven or go to Trucker tax Tools
dot com now and let the experts keep you trucking.
(22:17):
Let's get back to tax Stock for you with more
tax talk, and once again here's your host, Barry G.
Speaker 1 (22:24):
Fallon.
Speaker 4 (22:27):
Hey, you know again, if you've got questions, you know,
feel free to throw the men to us. We're going
to answer those questions. You're helping the show. You guys
are as much a part of the show as I am.
What do you guys need to know? How can we
help you. How can we resolve your tax problems? Or
maybe how can we help you get the most out
of your tax return and get the best refund and
(22:49):
get the money back that you're deserving. Right man, Maybe
you just messed up and you file late and you oh,
so now we got to resolve the tax issue. So
don't be afraid to give us a call. I get
a free consultation. Let us see what we can do
for you and how we can help you. Again, it's
eight eight eight nine three zero one zero one six
(23:09):
again eight eight eight nine three zero one zero one six.
Speaker 3 (23:13):
And we've got a question in from Leslie. Yep.
Speaker 4 (23:15):
We've been talking about the ZIM letters. She's asking if
you missed the letter and don't know what the corporation
is set up as, how can you figure it out?
One you've Hopefully, if you've kept the letter, you can
go back and try to find it. I know what
happens to a lot of IRS correspondence. Sometimes people just
throw them out and they don't pay attention. Or even
(23:39):
if you had a registered agent or somebody that filed
for you, they maybe gotten that letter and you'll be
able to contact them and they should be able to say, yeah,
I got a copy of it and give it to
you if you've done it all yourself and you lost
it or just have no idea where it is, the
next best thing would be to call the IRS. Be
ready to be able to give them that employer identification number,
(24:03):
which sure you have, give them the employer address, make
sure is the correct address for the business, and then
your information and what your ownership or work position is
within the company. Now the IRS will give you all
the information you need of what, where, when and why
(24:26):
you need to file, so they would be able to
answer the question for you saying, hey, your LLC was
set up as a single member sole proprietorship and therefore
you file on schedule see of your personal tax return
or it said that you filed as a multi member LLC.
(24:46):
It should be filing a partnership return and here's your deadline.
Speaker 3 (24:50):
Now.
Speaker 4 (24:51):
If you do call the I R S and ask
those a couple of things of how should I be filing,
make sure they look at everything reponsible to file. Payroll
texture maybe your trucking company. Are you required to file
the heavy hauling Heavy Highway Hauling Tax Return twenty two
ninety which is due in July of every year. IRS
(25:15):
may have those filing.
Speaker 3 (25:17):
Requirements down for you.
Speaker 4 (25:18):
Well, now, once you figure all that out in talking
with them, if you're not running payroll and you have
no employees and they say you have payroll taxes to
be filed, talk to the agent on the phone right
there and tell them I don't have employees, I am
not running payroll. They can remove that payroll filing requirement
(25:41):
for you and remove all the returns that have not
been filed.
Speaker 3 (25:46):
Now, if they've done substitute.
Speaker 4 (25:47):
For returns, you may have to go back and do
amended returns or do actual returns and show that it
was zero's let's just talk to the agent out there.
They're going to give you that information now. If you
don't have three four hours to sit on the phone
and wait for the IRS right now, maybe longer than that.
With only twenty five percent of their workforce working, you know,
(26:11):
we can do a complete tax analysis for you, for
you and your business and make sure that everything is correct,
which isn't a bad thing, and it's relatively expensive. Right now,
we have discounted tax analysis running for people currently across
the board. It's Taxation Solutions DOT net, or you can
(26:32):
just give us a call at eight eight eight nine
three zero one zero one six Again eight eight nine
three zero one zero one six give us a call.
We'll do that tax analysis for you. It's very deeply
discounted just to be able to help you. And just
make sure you reference the show Tax Talk.
Speaker 3 (26:52):
For You Andy.
Speaker 4 (26:53):
While we're talking about tax Talk for you, if you
go to tax Talk the number four letter you dot com,
you can follow us over there, follow us on Facebook,
and never ever miss an episode on for Tax Talk
for You dot com. I W four c Y Radio,
which we're here every Monday at ten am Eastern time.
(27:17):
But if you follow us, you'll never miss a show,
which is the best thing for you if you need
information about taxes. And we have open forums, so therefore,
if you have questions, we're going to answer those questions
that help you out. We have a question here from
looks like Joey heard a rumor that the I R
(27:39):
s will actually forgive taxes. Well, the answer to that is, yeah,
they do. If you can get through ten years, yeah,
ten years without the IRS doing elections and leving your bank.
Speaker 3 (27:52):
Account or we're doing a wage garnishment, or.
Speaker 4 (27:56):
If you're in social security, social security or pension, they
can harnish those as well. But in general, the IRS
has ten years to collect on unpaid TAKS debt. After that,
the debt is wipe clean from the books. The IRS
just writes it off. Now that's the ten year statute
of limitations. Now ten years isn't just ten years, So
(28:19):
ten years can be extended. So depending on if you
file for like a CDP hearing blacks and new process hearing,
you filed for non collectible status.
Speaker 3 (28:30):
Well anything is pending.
Speaker 4 (28:32):
It stops that collection activity, stops the statute of limitations
from running.
Speaker 3 (28:38):
Now that's statute of.
Speaker 4 (28:40):
Ten years is ten years from the day that you
file in the return accepted. So yes, if you filed
October fifteenth, twenty twenty four, and you owed ten twenty
fifty thousand dollars in October fifteenth of twenty thirty four,
if you got away without paying any that debt plus
(29:01):
penalties plus interest, it will all go away. Unless you
filed for offering compromise CEDP hearing non collectible status, then
that time period is going to continue to hold the
statute of limitations. So let's say you decided to file
for an offering compromise, I'm back tax debt, and it
(29:23):
sits out there and it's processed for let's say a year,
your statute limitations gets extended by that year. It could
be longer than that because it may take them two
or three more months to kick it out of the
offer status, and so then it's fourteen to fifteen months
that it's extended by. So you know, you got to
(29:46):
not just look at the time period, but how all
the different extensions to that statute of limitations. But if
you do nothing in the irs, you know, does it's
whatever it's going to do over the ten years and
you managed to ignore them, ignore them. They take a
little bit of money because they leve at your bank
account or you're not working in a finally levy against
(30:08):
Social Security and you let that role. Eventually it's going
to you know, that's going to fall off unpaid unless
the collections from Social Security is enough to.
Speaker 3 (30:18):
Pay it off.
Speaker 4 (30:19):
Then it's going to go away anyway, because you paid
it off. But if they happen to levey your bank
accounts or your pension or your IRA's or your four
to oh one k's, then you know you're really out
of luck, it's getting getting paid.
Speaker 3 (30:33):
You know.
Speaker 4 (30:34):
Yes, I've seen quite a few people go through and
work the system to get to the statute of limitations.
And we've had a lot of people that come to
us and we do tax analysis. And one of the
things that we're looking at when we do our tax
analysis is one, of course, have they filed everything? Have
they filed it correctly and timely? What penalties can we remove?
(30:57):
And then when is the statute of limitations running? And
then we go from there and look at what is
the best solution. So solutions to tax problems come in
various different plans and ideas. You know, the whole goal
is to reduce the debt down as much as we
(31:18):
can to be either affordable or to go away. So
you just filed this year, but you have other years
that you filed for in the past. Now, how do
you get this debt to go away? Well, you sit
and wait ten years? Statue of limitations right now? Okay,
maybe you can make it, but maybe you can't. What
are the true in real options? And where do you
(31:42):
go from here? You've seen it accumulate. You see the
debt get worse and worse. Now what do you need
to do to put a solution to your tax problem
once and for all. Hey, it's anybody's guess, but I know.
And right after we take this quick break, I'm gonna
give you some hints on what you can do. What
(32:03):
we can do solve your tax problem with the IRS.
We'll do that right after this.
Speaker 2 (32:09):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family. Stop
spending time doing paperwork. Go to Trucker tax tools dot
(32:29):
com a solution filled specifically for truckers. Trucker tax tools
dot Com makes your life run smoothly. Let's get back
to tax stock for you with more tax stock once again,
here's your host, Barry G.
Speaker 3 (32:47):
Fowler.
Speaker 4 (32:50):
Hey, you know a great way to end that last segment. Hey,
what's going to be a solution to your problem?
Speaker 3 (32:55):
Hey?
Speaker 4 (32:56):
But before I get into that, I had a question
from Jeremy what triggers the IRS to audit you? Because
I am going through an audit and don't know why
it was triggered. Well, without looking at your return, I
couldn't tell you. But the number one reason is underreporting
your income. So the I r S gets a lot
of income forms ten ninety nine's, W two's ten ninety
(33:20):
nine S, house sales, brokerage transactions. You know, any of
these things you have to report on your tax return.
These are all income, So any income you're earning, if
you don't report all your income, it's an easy trigger
for the I r S.
Speaker 3 (33:37):
And sometimes it's a correspondence out it. Other times it's
a full fledge audit that depends on what else is
on your return.
Speaker 4 (33:43):
So if you've taken excess business seductions, you know you
may get that full fledged audit because you underreported your
income where it may have flown floated right underneath the radar.
If you didn't do that, nobody knows. But the IRS
right now concentrates mostly on those earning more than two
(34:04):
hundred thousand, But if you are a schedule C you're
more apt to get audited as well, because, in my opinion,
the IRS thinks every business owner that reports on a
schedule CE lie sheets and steals and doesn't report all
their cash income everything else. So make sure that you're
reporting all your income. And take all legit deductions that
(34:28):
you can find, and that becomes really really important. So
how do we solve your IRS problems? Well, we all
hear on the radio and then offers and compromise that
means you settled your debt for less than so. And
it always makes it sound like everybody qualifies, Well not
everybody qualifies. If you can afford to pay. You can't
(34:50):
qualify even if you can't afford in your eyes, if
you can afford to pay in the IRS's eyes, because
they have different standards than you do or I do,
because they look at what is national standards. National standards
gives you a certain amount of money you don't exceed
for you know, housing and utilities. You know national standards
(35:15):
for food, and you know whatnot over there, national standards
for you know what your car payment cannot exceed or
car expenses cannot exceed. You know, school expenses for your kids,
whether they're in private school for high school or elementary
(35:37):
or middle school does not get included.
Speaker 3 (35:40):
There.
Speaker 4 (35:42):
Tuition, college tuition for your older kids, that does not
get included in any way, shape or form, and that
kind of amazing the government has. It's a two way street.
You failed a fast food for college, and your income
has to be counted for them even though they're over eighteen.
But yet when you have of IRS problems, they can't
(36:02):
count college tuition into your equation to set all your
tax Who wrote that in Congress? You know, it's just
their interpretation of what's right what's wrong. You know you
can only have two cars. If you've got cars for
your other kids and they're owned outright, they're considered assets
and you should sell them.
Speaker 3 (36:22):
So offering compromise isn't right.
Speaker 4 (36:23):
For everybody, and that's something we've got to go sit
down and go through a complete analysis. You can go
through and do an installment agreement. Most installment agreements that
the IRIS is looking to do is a full pay
when you call them, that's what they're going to give you.
Speaker 3 (36:38):
Now, you might be able to.
Speaker 4 (36:39):
Qualify for a partial pay installment agreement, meaning you're going
to pay less than what you owe over a period
of time, but you're going to pay now that they're
a little bit looser on the standards, you don't have
to meet the national standard. Your other expenses and stuff
are going to be included at least during the time
period that you're making these payments or at least the
time period that car payment and stuff is going to
(37:01):
be around, so be able to go possibly partial pay
installment agreement, and then maybe it's the non collectible status
and that's where you don't pay anything as long as
your income doesn't increase. Now, they may look at it
in a couple of years, and that's fine. If your
income hasn't changed, you're going to stay in that non
(37:22):
collectible status. Now, which one's right. Well, first thing, first,
first thing we're going to do is sit down and
look at what you owe, how much you owe, what
the statute of limitations are. Maybe you have a year
or two or some that are showing up in about
four to six months, that's a statute that's going to
run out. On that being the case, we may not
(37:43):
want a solution right away, or we might just go
after a partial pay installment agreement and let small payments
go and then that debt falls off. But we definitely
don't want to do anything to extend the statute of limitations,
and we don't necessarily want to file that offering compromise
right away because it starts extending that statute of limitations. Now,
(38:04):
the other fault with this offering compromise is it also
has a five year period of full compliance. That means
five years from when it's accepted. So if you stop
the statute of limitations running today and filing by filing
an offering compromise and they process that in a year,
you have from today until they accepted for another five
(38:28):
years after that that you've got to be one hundred
percent in compliance. And after that five you know, if
you're sometime during that five years you fail to stay
in compliance, all the debt comes flowing back with the
original statue of limitations starting from there, so wherever you
were in your statutes, it picks up. So sometimes that
(38:52):
is not the best course of action to take, especially
if you know for a fact that there's no way
you're going to stay one hundred percent in compliance with
the tax laws. So sometimes that partial pay installment agreement
works better. Sometimes that non collectible status, you know, works better.
Sometimes that full pay installment agreement is just the only
(39:13):
option for you. But it's one of those things that
we can sit down and look at doing and we
see this a lot for truckers, and we see this
a lot for small business owners, you know, across the
board that get into some small problems and it becomes
larger problems. And what's going to be the solution. Well,
you know, if you if you call up in one
of those radio ads tv ads, they're going to tell
(39:36):
you you're going to qualify for an offering compromise and
get you to sign up. But the whole thing they
said was before that possibly maybe nothing's for certain. It
depends on whether the IRS will accept it all excuses.
That's why sometimes it's best to go sit down and
go through a complete tax analysis where we can actually
design the program to say, hey, you're going to qualify
(39:58):
based on this or that, and then here's what the
cost is to get you into this program. And whether
you go with us or not, from that standpoint, at
least you are armed with the knowledge to be able
to determine what route you need to go to put
the best solution in place for you. Now we've even
(40:19):
told some people, hey, this is easy enough. You should
be able to do this, this, and this yourself and
get your tax problem resolved. We handle everybody case by case.
There is no cookie cutter to this. There are certain
people that we can look at and say today don't
qualify for an offering compromise. But when we get in it,
(40:40):
they left out a few things that we really needed
because they didn't think about them. And then we change
one or two things that they're doing in their life,
and all of a sudden they qualify to buy on
offer and compromise and settle a million dollars Taxidad or
(41:00):
somebody for far less than what they're going to owe,
because we are able to make changes to their life
to qualify better in the offering compromising something they can afford.
Danny Ass How long does tax analysis take? Well, there's
two steps to it. Now. The first step is going
(41:21):
to be calling the irs. We always put into our
tax analysis a hold with the IRS, and so we
get the hold, we get them to send us the
information about the debts that you owe, and then we
wait for the IRS to process that power of attorney
so our system can pull everything else from the IRS
(41:43):
in about two weeks, where we get all the c
said dates and everything else that's there, which is the
Statute of limitation dates and any other information that we
could not get from a revenue agent on the phone.
Speaker 3 (41:58):
So about two to.
Speaker 4 (41:59):
Three weeks and we've got all the stuff here to
be able to tell you where we go from there.
Tax analysis costs will vary, but we're right now we're
doing fifty percent of so call us at eight eight
eight nine three zero one zero one six jump in
today and take advantage of that. Harriet asked, does this
work for a small corp as well? Well, Harry, depends
(42:24):
on how you're reporting, and if you're reporting on eleven twenty, yes,
we can do certain things for you there. If you're
reporting as an S corp, then all the taxes actually
flow to your personal and yes, we take care of
you personally, and then we can do a tax analysis
for both of you and the business out there as well. Now,
(42:45):
payroll taxes, that's a whole nother story. We did a
whole segment on payroll taxes. So if you go look
at our podcasts, you can go to tax Talk for
you and do a search over there and you can
find a podcast about payroll taxes and how to deal
with those. Well, a matter of fact, you might have
another great discussion about payroll taxes here out there. And
(43:07):
our last question here, will this information bring up any
issues with the irs?
Speaker 3 (43:12):
And no, not at all.
Speaker 4 (43:14):
Hey join us every Monday ten am here Eastern time
on W four CRY Radio at tax Talk for You
dot Com.
Speaker 3 (43:24):
Again.
Speaker 4 (43:24):
It's tax Talk the number four letter dot com and
we'll see you every Monday right here again ten am
W four c I Radio.
Speaker 3 (43:34):
Don't miss it.
Speaker 4 (43:35):
Follow us on Facebook, follow us on Instagram, follow us
on tax Talk for you dot Com.
Speaker 3 (43:43):
Have a god bless glorious week. We'll see you next week.
Speaker 2 (43:47):
Are you an individual or business that wants to understand
taxes and how they affect you? Are you looking for
specific tax advice for self employed business owners in truckers?
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some relief,
(44:08):
then you need Tax Talk for You, hosted by tax
and trucker expert Barry G. Fowler EA. Tune in ten
am Eastern time every Monday right here on W four
CY Radio and Talk for TV. Don't forget to check
this and past episodes at tax talkforu dot com. See
(44:29):
you next week at W four cy dot com.
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Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.
Two Guys, Five Rings: Matt, Bowen & The Olympics
Two Guys (Bowen Yang and Matt Rogers). Five Rings (you know, from the Olympics logo). One essential podcast for the 2026 Milan-Cortina Winter Olympics. Bowen Yang (SNL, Wicked) and Matt Rogers (Palm Royale, No Good Deed) of Las Culturistas are back for a second season of Two Guys, Five Rings, a collaboration with NBC Sports and iHeartRadio. In this 15-episode event, Bowen and Matt discuss the top storylines, obsess over Italian culture, and find out what really goes on in the Olympic Village.