May 5, 2025 • 44 mins
Tax dealines have passed, extensions filed, taxes due, when to pay, when to file. All the things you need to know after the April 15th deadline. When extension is due, estimated tax dates and amount due with each quarterly payment. #trucking
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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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).
Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
Become a supporter of this podcast: https://www.spreaker.com/podcast/tax-talk-4-u--6333550/support.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
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
(00:21):
W FOURCY Radio.
Speaker 2 (00:27):
Barry gen Fouler EA brings you tax talk for you
right here on W four CY Radio and Talkboard 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.
Speaker 3 (00:51):
For individuals and businesses just like you. So let's have
some tax talk for you with your hosts. Barry gen Foulay,
welcome man, We're Monday.
Speaker 4 (01:06):
Hey, let's get off to a good start this week.
You know, we all got up. It's a great day.
Sometimes days like this can be hard days. Sometimes it's
an easy start to the week. You know, we make
what we make out of It depends sometimes on your attitude.
Sometimes your attitude depends on other people. You let the
(01:29):
other people's attitudes roll off your back and let's get
started in a great week. You know. Tax deadline passed
back on April fifteenth. Now what do you do. Do
we just ignore taxes for all of twenty twenty five
and act like it's not there. Do we start planning?
What do we need to do? Maybe you didn't file
(01:52):
and you have an extension and you need to get
ready to file your taxes, you know, before October, or
if you running a partnership or an escort, you've got
to get them filed in September. So everything is about
getting ready, being ready, and following through with either your
(02:14):
plan or you know, the items that you need to
take care of in twenty twenty five. So, whether you
filed your tax return or filed an extension, one of
the first things you need to be paying attention to
is do you have to make estimated tax payments? That
first estimated tax payment was also due April fifteenth, and
(02:35):
that kind of double witching hour out there they get
to hit with twenty fours taxes, and then you got
to start paying on twenty five taxes. So if you
are running a small business or maybe you under withhold
on your W two paycheck, you possibly have to make
estimated tax payments. Now, the IRS isn't really nice about this.
(02:56):
They don't truly give you quarterly estimated tax payments that
you would think of. You know, the first one was
due April fifteenth, your second one is due June fifteenth,
then September fifteenth, and then all the way to January
fifteenth of twenty twenty six. Those are the four estimated
tax payments you are required to make if you're required
(03:17):
for estimated taxes, and you've got to make sure you're
paying those in and paying the right amount to avoid
penalties and interest on estimated tax payments. It becomes as
simple as that. We have a whole podcast on estimated
tax payments. If you need to know how to figure
those out, go to tax talkforu dot com. Subscribe there,
(03:38):
and then you can see all the prior podcasts and
find the one that has estimated tax payments on it
as well. Now, so maybe you don't have to make
estimated tax payments, but you did your estimate for twenty
twenty four and you found out that hey, you're going
to ohs, but you didn't want to file. Then, unfortunately,
(03:58):
the IRS did require you to pay all taxes due
for twenty twenty four, at least up to ninety percent
of them. And you know on April fifteenth or before,
whether you filed or not, that extension of time is
only the file not to pay. So maybe you're going
(04:18):
to still, oh, what do you do? You know, we
kind of suggest going into IRS DOT go go in
and make payments, make periodic payments on that even up
to the time that you file. Make sure you record
those payments properly in the right year or the right
tax and that way, maybe the penalties are reduced a
little bit less interest and you're making the initiative to
(04:42):
pay on it, or maybe you've already filed and you ow.
We'll kind of get into that in a few minutes
in talking about what to do when you owe, and
maybe you don't just owe for twenty twenty four, but
maybe you owe for twenty three, twenty two, twenty one.
You know, those are the kind of things that you
you've got to deal with because interest and penalties continue
(05:04):
to mount month after month on the taxes that you. Oh, now,
if you're running a business, you maybe your partnership, maybe
your escort, and you need to file those taxes. Hey,
one of the things that you need to do being
in business is have good bookkeeping. You know, bookkeeping is
(05:25):
not a guestimate. You know, we've had clients come to
us with guestimates, and how do you know it's a
guestimate because of the inconsistency or the consistency of the
numbers inconsistent with normal operations of business. You know, we
have been doing taxes a very long time. We kind
(05:46):
of can tell when somebody is just providing us numbers
that they just decided to give you on a whim.
And if we can tell it without any extensive you know,
AI or logarithms on these, the IRS is going to
tell by their extensive computer analysis that they continued to do.
(06:08):
Or maybe you came to us with round numbers. See
this is an IRS red flag. And you know we
talk about IRS red flags all the time, but round numbers.
So if you are a trucker, by the way, we
do trucker bookkeeping. So if you get a Trucker Tax
Tools dot com. You can sign up over there for bookkeeping.
It's just strictly twenty five dollars a week, simple, easy,
(06:31):
cost effective keeping up with your bookkeeping. But we've had
class come to us with round numbers. You know, if
you're out there transporting goods and you're going to tell
us that your maintenstrument repairs was forty thousand, your fuel
was fifty thousand, your travel meals was ten thousand, office
(06:52):
supplies were two thousand, insurance was sixteen thousand. See, these
are all round numbers. The huge red flags in the
IRS's eyes. They know you didn't take the time or
effort to actually put true numbers together. And yes, it
takes time. It takes effort to put numbers together that
(07:14):
are true and accurate. Regardless of what business that you're in,
you have to take the time to do that. So
when's the good time to start doing bookkeeping? Well, actually
the best time was starting January, you know, start the
new year off in doing bookkeeping and your commitment to bookkeeping.
If you didn't start, then the next best time was
(07:34):
starting February. And what's the next best time? Right now,
get yourself caught up this year's bookkeeping. Get yourself up
to date, so you know, hey, where is my business going?
You know, we talk about the benefits of bookkeeping, you know,
and when we're talking about taxes, the benefit is having
good solid numbers you can support through bookkeeping. What's really
(07:59):
the best reason? Yeah, you know, having good salid numbers
for taxes is a top five reason. But the number
one reason to do bookkeeping and have good bookkeeping is
that you have good financial numbers to know where your
business is, where it's been, and help you to plan
(08:22):
going forward where you want it to be. So if
we don't use just bookkeeping for tax purposes, we use
our bookkeeping to help give businesses information to run their
business better. Hey, we had a question come in from
(08:44):
June asking about the twenty five dollars offer. But the
twenty five dollars offer is for our truckers. Yes, we
can put together a package for you that's very competitive
for your business. If you give us a call at
Trucker Tax Tools, we can give you a quote. Trucker
(09:08):
Tax Toles is set up specifically for truckers, but yes,
we do do some other businesses out there as well.
I have been in this industry of bookkeeping and taxes.
For close to now forty years, I've been helping small
businesses across the nation put together information and save money
(09:33):
on taxes, minimize their tax bill, maximize their profit, keep
more money in your pocket. That is what we are
all about, and helping people to beat the irs then
and keep your money lower that tax build down, Jim Judy,
(09:56):
do we have smaller plans for very small businesses with
less than four two thousand a year coming in. Unfortunately,
that is our lowest possible cost out there. All of
our work here is done here in the US. We
do not sub it out anywhere else. So you can
give us a call at eight seven seven nine nine
(10:17):
six two four seven seven, or you can go to
truck or tax tools dot com and you can schedule
a time for us to talk to you so that
we can put the right plan together. You know, what
we try to do is help people, and that's what
we're here to do. And when we come back after
this break, we're gonna talk more about getting things ready
(10:39):
for filing your ESCORP or your partnership return that you
may have on extension, and we'll do that right after this.
Speaker 2 (10:47):
We have only scratched the surface of place show. Please
stand by us.
Speaker 3 (10:52):
Barry G.
Speaker 2 (10:52):
Fouler will be right back with taxmark for you. If
you own diio or going through an IRS audit, don't
go at it alone. Called Taxation Solutions tax Relief at
eight eight eight nine three zero one zero one six.
We are your solution for IRS TETs, audits, back taxes, garnishments,
(11:18):
leans and levees. Whether you're an individual or business, you
need a solution and a strong aggressive tax resolution.
Speaker 3 (11:27):
Don't let the IRS walk go over you.
Speaker 2 (11:30):
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.
Speaker 3 (11:47):
Let's get back.
Speaker 2 (11:48):
To tax talk for you with more taxtock once again.
Here's your host, Garry G.
Speaker 3 (11:54):
Foller.
Speaker 4 (11:57):
Hey, welcome back. You know we're gonna talk a little
bit here about you know, es corps, limited liability companies,
partnerships and the filings you've got to do. And you
know what you should be doing and preparing for these
filings that you may have an extension. You know, limited
liability companies and es corps. You know if spending on
(12:18):
how they're set up will depend on what you really
need to file. And what I tell people to do
is first thing to go back and look at your
ei IN letter, your employer identification number that you've got.
You establish your business and you went to the IRS
and filed the proper forms. That form will tell you
exactly what you need to be filing. And so if
(12:39):
maybe twenty twenty four was your first year in business,
go back and look at that employer Identification number letter
and see how it says the file. Now, we ask
everybody that becomes a client of ours, especially first year clients,
to get us at a ei IN letter because we
want to see what's how you were set up. Because
(13:00):
in LLC can be set up several different ways, and
you know the first way is a single member and
files on schedule C. Well, that goes with your ten forty,
so there's no extra filings besides your schedule CE with
your ten forty. Sometimes they're set up as multi member
companies and those would have a partnership filing. But we
(13:21):
have clients that come to us and say, oh, no,
I have this LLC and it's set up as an escort.
So we asked for the AION letter we asked for
the es CORP election letter so that we can verify
how this was actually set up, because what you think
you set up with the state because you said you
wanted to be an escort that is not a state designation.
(13:42):
That is an election through the iers and has to
be accepted in order to become effective, and they will
give you effective date. And then you've actually got to
make sure that if you opened up this LLC, you've
actually done business under the LLC. Somebody laughed at me
when I said that we have a client that came
(14:04):
to us it opened an LLC, but continue doing all
his business underneath his DBA. And he said, I was
talking to another person who did this, and they said, yes,
it's okay. Just open the LLC and all of a
sudden you're an escort. That doesn't happen, and all of
a sudden, all the business is underneath it. Nobody told
(14:24):
me I had to open up a separate new bank account.
Nobody told me we had a new employer identification number,
so that we have to run and give all everybody
we're working this employer identification number and run the business
through that other new bank account. Now my old bank
account for my DBA. Then they set up payroll where
(14:45):
they set up payroll not for the escort, but for
their DBA. See, you got to know more about business
and things that you're doing than your next door neighbor
or the guy that you see at the fuel or
somebody that you're sitting in a bar with and is
giving you advice. That advice is only what you paid
(15:08):
for it. It's worth zero nothing out of Get a consultation,
Talk to somebody, Talk to a CPA, talk to enrolled agent,
not to somebody that knows the ins and outs of
taxes in the tax code, so that you have the
right information and the knowledge to run your business the
right way. Now, see what happens. You set yourself up
(15:30):
as an LLC and you are a multi member, which
you forgot to put down that there were more than
one member on your application for your employer identification number,
and so the IRS expects it to be reported on
a schedule. See now you added the other member out there.
That's fine. It can be reported as a partnership without
a new election, because now you have a partner in
(15:53):
your business. But that partnership return is in due April fifteenth.
It was due March fifteenth. If you didn't file an extension,
you're now late. If you file the extension on April fifteenth,
that extension is denied and you are now late. And
now the IRIS tax on penalties for late filing, and
(16:14):
it is about four hundred dollars each member of your partnership.
There's limits on that, but they're going to continue to
tack that on until that return is filed. So what
do you do today? Hopefully you got bookkeeping done for
twenty twenty four, you give us a call. Let us
get started. Get that tax return filed so we can
limit the penalties. And if it's your first year, we
(16:36):
can go after penalty abatements and hopefully get it abated
so that you won't have to pay those penalties on
that partnership return. Maybe you've been a partnership for a
number of years and you've been reporting in on scheduled See,
what do you need to do. We need to go
back and amend and file the back years of taxes.
Now they could have some benefit to it because on
(16:58):
a partnership return, you will designate what is considered to
be a guaranteed payment and that's the only part it's
going to be tax for Social Security and Medicare, whereas
on the schedule to see the whole net profit was
taxed for Social Security, Medicare and profits gets split between
partnerships based on your percentage of interest. So you know,
(17:18):
there's different ways we've got to go through and do it.
Sometimes we can save you money by doing this and
getting it filed correctly. Then it is to have it
filed the incorrect way and continue to maybe accumulate penalties
and interest. So you got to know what you're doing.
Sometimes you need the advice and sometimes it's paid advice
(17:41):
and a console that does it. Or sometimes you need
good bookkeeping so that you know, hey, you've got the
information to be able to do your tax is the
right way. Give Trucker Tax Tools a call at eight
seven seven nine nine six two four seven seven and
let's get started today. Let's get that filed for you
as an owner operator, as an independent trucker. Hey, there
(18:03):
is nothing better for you than low cost weokkeeping help
save you money. And yes, as we were as answered
June's question about well that twenty five dollars offer, can
we do it for other businesses? We've got other options
for different businesses across the board. It is about the
(18:23):
same as that twenty five dollars a week. We give
us a call, let us give us give you a
quote for that so that, hey, we can get you
started and get things done you know, the right way
as soon as possible. Don't wait because you need the
information to run your business. You need good information to
save money on taxes. You need the advice in the consultation. Again,
(18:46):
give us a call at eight seven seven nine nine
six two four seven seven. I've got people tell me
I don't give out our phone number enough to help.
So you know, if you go over to tax tak
for you, you can watch these podcasts out there and
catch our number at scroll at the bottom. You can
also go to truck or tax tools dot com and
(19:08):
catch our number over there and give us a call directly.
It's a free console, free phone call. We try to
make it easy as possible for you. Again eight seven
seven nine nine six two four seven seven Hey es
corpse escorps again had that same deadline of March fifteenth. Now,
if you were a corporation when you set up your company,
(19:33):
so you know it ends in inc or it ends
in company. You know, you've got to company out there.
You've applied for your Employer Identification number and you put
in INC at the end, and you put in that
you wanted it to be an ESCORP. The IRS sends
you that EI in letter back and says you have
to do step one, step two, step three to get
(19:58):
the application for es CORP status. If you didn't do that,
the IRS is going to tell you have to filed
on eleven twenty. That's not an ESCORP return. That's a
corporate return. That's like EXI mobiles where the company pays
the tax and then when money gets distributed to you,
it's a dividend, and then you pay the tax on
(20:18):
it as well. So therefore you got hit with double taxation.
You get hit at the corporate level for taxes and
then the distribution out to you as a dividend is
tax on your personal return. And so therefore this is
what we call double taxation. So you need to really
look at it and make sure you doted your eyes
(20:39):
and cross the t's and got your es CORP application submitted. Now,
right after this break, we're going to talk about what
you need to do real quick to save yourself from
this and what you can do if you forgot the
file for an ESCORP status for twenty twenty four. We'll
do that right after this break.
Speaker 2 (20:58):
We have only scratched the surface of today's show. Please
stand by as Perry 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. Trucker
Tax Tools handles all your bookkeeping and taxes.
Speaker 3 (21:18):
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.
Speaker 2 (21:27):
Trucker Tax Tools makes your life run smoothly.
Speaker 3 (21:31):
Go to Trucker tax Tools.
Speaker 2 (21:32):
Dot com for a free guide that will give you
the tools to never.
Speaker 3 (21:37):
Worry about your taxes again.
Speaker 2 (21:39):
Call Trucker Tax Tools eight seven seven nine sixty six
two four seven seven or go to Trucker tax Tools
dot com now and let the experts keep you trucking.
Let's get back to tax stock for you with war
tax Stock once again, here as your host Reg Ballum.
Speaker 4 (22:05):
So you got your company, you went back and looked
at that EI letter and you go, oh my gosh,
you told me I have to I filed eleven twenty
and I really wanted to be an escort. I really
messed up, and we wanted an effective January one, twenty
twenty four, or some period of time in twenty twenty four.
When you set up your company. You know, now, what
(22:27):
do I need to do? Well, there's late election relief.
You can put on your corporate tax return. You're eleven
twenty s this is my initial return and include the
twenty five point fifty three eighty eight thirty two and
affirm that you wanted this to be effective January or
(22:49):
whatever date in twenty twenty four when you started this company,
and the IRS will usually grant this relief. I don't
give you guarantees and what the IRS is going to do,
but yes, for the most part, the IRS would grant
late election relief for this. Now, with being an escort,
you had to followed all the rules, and yes, you
(23:11):
would have had to be an owner working in the business,
would have had to been on payroll. If you didn't,
the IRS the first year is not going to hold
it against you that I have seen. Again, no guarantees
what the IRS is going to do because they expect
a reasonable salary for the owners in the business. But
(23:33):
go ahead and make that election late election and ask
for the relief. IRS should grant that in your first year,
and that way you can still report things as an escort.
But then make sure for twenty twenty five you're doing
everything right. If you're not sure, hey, give us a
call and you know, let us go through and do
(23:55):
a consultation with you. Let us talk a little bit
more about everything you've got to do as an escort
and make sure that you're protecting yourself and your business
across the board, not just for taxes, but also you know,
making sure that you're running the business the correct way
(24:16):
within all the guidelines that you've got to run a
business to do. And if you're looking for the legal
liability limitations, hey, we tell you to call an attorney
and talk to an attorney about that to make sure
that you have the liability protections that you wanted when
you set up this corporation or the limited liability company,
(24:40):
so that you know you're protecting yourself and your personal
assets outside of business. Is there, But that takes an
attorney to talk about those items for you. All right,
I know you've been waiting for it. You owe the
IRS money. Now, what do you do? Stick your head
(25:02):
in the sand, ignore it. It'll go away, won't it.
Wait a minute, what did you just say. I can
stick my head in the sand and ignore it and
it'll go away. Oh heck, No, IRS isn't going to
let you get away with owing them money. Now, if
you've voted money for a number of years, you've seen
the love letters that the IRS. Since you owe, you
(25:23):
need to pay us. That's the way it works. You know,
the IRS isn't the biggest baddest collection in tocy in
the world for no reason at all. If the IRS
wasn't there, how many people would actually file their tax returns.
I don't know that could count many, because even though
you're voluntarily reporting supposedly your taxes, is still a requirement
(25:46):
that you've got to file your taxes every year. And
if you don't, the IRS can file a tax return
on your behalf, which isn't a good thing because they
don't take all the deductions. They don't give you every
deduction that you're in title to. They give you what
they see fit to. You know, get their tax returns file.
Don't let the IRS file the substitute for return and
(26:09):
come after every dime that you've got. See, this is
where your taxation solutions tax relief comes in. We're your
representation for strong aggressive tax resolution to put the IRS
out of your misery, get the IRS monkey off your back,
not letting them walk all over you. We get to
stop them, but it starts with you calling eight eight
(26:31):
eight nine three zero one zero one six again eight
eight eight nine three zero one zero one six taxation
solutions tax relief to get that IRS monkey off your back.
But in one of our previous podcasts we talked about
do it yourself IRS representation one on one. Hey, everything
you need to know on everything you need to do
to represent yourself against the IRS can be found at
(26:54):
tax Talk for You on one of our podcasts, go
tax talkfor YOUU dot com and you can see that.
But you know you have options. Some of the options
aren't the best options. Some of the options you qualify for.
Some of the options you can't qualify for. You know,
the simple one everybody qualifies in some way, shape or form,
is going to be an installment plan. You owe the
(27:17):
IRS money. Pay them, that's what they say, pay us
every dime that we want. When you call the irs.
The IRS is going to take how much you owe them,
and they're going to look at all the years you
owe for and they're going to take that money and
divide it up over the statue of limitations. And some
of the statutes are going to require higher payment because
(27:38):
maybe a two thousand and fifteen tax debt is only
going to have a year or two before the statute
runs out, So that's going to increase your payment by
quite a bit depending on the amount that you owe.
And then each subsequent year will have a little bit
greater statue of limitations before it runs out. So it's
(27:59):
a total ten years from when you file and accept it.
So that twenty fifteen return you filed in twenty sixteen,
you know, we'll still have another year to go to
twenty fourteen tax return as long as you didn't do
anything that extended, the statute of limitations would be running
out at some point this year. So if you filed
(28:20):
an extension in twenty fifteen and you didn't file until October,
well then you have until October before the c sets
kick in. And that's where a good tax analysis would
be ideal for you to be able to determine. You know,
what are the statute of limitations? Why does the IRS
require or say that I owe this money and we
(28:41):
can go back in and look at it. Maybe they
filed a substitute for return many years ago and that
is the reason that you owe money. Or maybe you
got audited but you never replied and is the reason
you owe money. There's a lot of different options out
there of reasons why people owe the IRS money, including
just hey, ignoring it and thinking it's going to go
(29:04):
away and it doesn't. You know, those are the hard
parts in life, is you know, filing taxes and when
you're self employed running the small business, maybe even running
a consulting business on the side, or maybe you've changed
employers and you didn't have enough withheld from your paycheck
all reasons. You know, maybe you started a business and
(29:27):
you didn't have a consultation with anybody about requirements of
things that you need to do, and you never paid
any estimated tax payments and now you've got a huge
tax bill. So you know, if you're making good money
and you can't qualify for any other program, installment agreement
and work. Now the interest rates are sometimes pretty high.
Maybe you can go to the bank, get a lower
(29:48):
interest rate, and you can stop penalties, and that may
be the best thing you know for you for yourself
to save money and cut interest down. You know, what
you need to do is sit down and look at
what the IRS interest rates are, how they're going to
continue to calculate penalties, especially if this is a new
(30:09):
tax debt for you, older taxdeds just accumulating interest but
may not be accumulating any more penalties. And maybe we
need to go after some penalty abatement to remove some
of the penalties that are for you, because you know,
we're able to sometimes abate penalties, but again it's subject
to IRS approval, so sometimes it's hitting this. You know,
(30:30):
it depends on the IRS out there. We've done a
very good job of removing penalties as well, but everybody's
situation is different. The i r S is going to
look at each situation a little bit differently, and then
we look at all the different other programs that are
out there that the I R S has. So after
(30:51):
this break, we'll talk about what other options besides a
full pay installment agreement, and we'll talk about it right
after this.
Speaker 2 (31:00):
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
(31:21):
com a solution filled specifically for truckers. Trucker tax tools
dot Com makes your wife 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 (31:39):
Fowler.
Speaker 4 (31:41):
Hey, welcome back. This must be the jay to day
for questions. So I got a question from Jeff and
yes heard you do a little bit of ranching on
the side. What do you have on your ranch? Well, Jeff,
you know, it's kind of funny we kind of talk
about h you know with some of our clients out
(32:02):
there of you know, what do we do, you know,
farm ranch And when we get a new client in,
you know, owner operator, truck driver, you know, I like
to get to know a little bit about what they do,
and they always ask me what I do. So you know,
I know, Jeff, you and I've talked and uh yeah,
I run a twenty nine acre ranch just outside of
(32:25):
northwest Houston. Here. We've got about eight head of cattle
out there, a couple of bigs. Now we're close to
one hundred chickens. They are layers, and uh, we've got
about thirty meat birds that were raising for for me,
and a couple of donkeys and you know, and of
(32:48):
course dogs that we have a lot of fun. We
were building or adding on to the chicken coops this
weekend and building a what we call chicken tractors so
that our meat birds we can move them around the
ranch and they can continue to eat the grass and
fertilize along the way. So those are some of the
(33:09):
fun things we get to do on our weekends, and
you know, even our evenings when we get back, you know,
collecting eggs and making sure the chickens are fed and
pigs are fed and fun things like that. But hey,
what people really tune in for, Jeff is you know,
taxes and bookkeeping, and you know that's what we're here
(33:31):
to do. Maybe one day we'll have a whole day
on farming ranch taxes out there, because it's an interesting
field out there, you know, dealing with farming ranch taxes
as well. And I got a lot of owner operators
out there that are are ranchers as well that run
some farms and and stuff. So, hey, I'm glad you're
(33:53):
here and in joining us out here at tax Talk
for You and again go to tax Talk for You
dot com and you can see all of our other episodes. Hey,
but what you really wanted to know is what are
my other solutions to my tax debt? You know, we
tell you to call taxation solutions tax relief. Go to
Taxation Solutions dot net in Taxation Solutions dot net. A
(34:19):
lot of information there on solutions to your tax problem.
And you know we can help save money on taxes
and you know, put the right solution in place so
you might be able to qualify for what we call
c NC currently non collectible status. Currently non collectible status
(34:42):
means you have very little income coming in and you
can't afford to make any payments, and the IRS will
put you in that status for at least two years.
They will periodically come back and ask for verification of
income to make sure that you can still maintain in
this status. If statute of limitations is going to run
(35:04):
out pretty soon, the I R S is going to
jump through quite a few hurdles to make sure that
you can't afford to pay them, and that includes your assets,
and you know, whether it's your home, your IRA's four
oh one k's, all these different things that are assets
to you, even jewelry or paintings and stuff like that,
(35:28):
to make sure that you can't afford to pay them.
But the biggest one is going to be income. A
lot of times we can help show to the irs
that no, you can't pull this money out of your
IRA or four one K to pay them because you
need this money to live on, because maybe you're retired.
(35:49):
But if you want to find out more information, give
us a call it eight eight eight nine three zero
one zero one six again eight eight eight nine three
zero one zero one six and we'll be able to
walk you through it or help you especially you know,
if you're going to qualify for c NC. Now there's
two other options out there, and these are options you
hear about on the radio, and people try to sell
(36:11):
you on these things day in and day out, and
when you owe money to the I r S, these
sound fantastic, sound great offer and compromise where you're going
to pay far less than what you owe. Or somebody
you know used to say all the time. Pennies on
the dollar. Hated that comment. But nobody ever guarantees it's
(36:34):
it's something you can't really guarantee that you're going to
get accepted or qualify for. You know, we sit down
and we talk to you about the different various options
offer and compromise. If you meet all the qualifications, it's fantastic.
It can save you a lot of money. If you
(36:55):
don't quite qualify for all, that partial pay installment agreement
could be the better option where you pay over a
longer period of time during the whole statute of limitations,
but you pay far less than what you owe. So
you got to look at what the offer amount is
going to be and what the partial pay installment agreement
(37:16):
might be, and then look at the strings that are attached. See,
there are strings to an offering compromise, and people don't
talk about this. You know, you have to stay one
hundred percent in compliance with IRS rules and regulations, meaning
filing taxes on time, not owing any money when you
file your taxes. If you do, oh, it's fully paid.
(37:38):
You've made your estimated tax payments all throughout the year
and every year. This compliance isn't one year one time.
It's five years from when it's accepted, but it starts
with the year that you put the offer and compromise in.
So if you were to file and offering compromise, let's
(37:58):
say you file that offering compromise today, you would have
had to make sure that you made the first estimated
tax payment that was due back in April, if you're
required to. If you didn't do that, the IRS when
they start reviewing the offer, before they even take the
offer in as a true offer, they tell you you
have to make that first estimated tax payment or if
(38:19):
you file it the end of June or into July
or August, then you've had to pay both estimated tax
payments for twenty and twenty five. If you didn't, they
would just return the offer to and you start all
over again. It's not a oh me bad, No, it's
all new paperwork they go through. If you can't be
in compliance, maybe that partial pay installment agreement is the
(38:43):
right way to go. You know, partial pay installment agreement
does require compliance. I mean you got to file on time. Still,
with the difference between partial pay installment agreement and an
offer and compromise is you've been paying on the debt
for a period of time. Once the statute of limitations
runs out on the oldest year, that debt is gone
(39:03):
for good offering compromise, that statue of limitations stopped running.
You're in a five year one hundred percent compliance. If
you fill out a compliance four years eleven months into it,
you still owe all the money that you owed at
the time of the offer, plus anti penalties and interest
(39:24):
that accumulated over those period of time. How do I
know this is true? It's written is in the code.
I also had a client came to US many years ago.
You came to us, had an offering compromise that was accepted,
and it was accepted four years, eleven months, twelve months,
almost twelve months. They didn't file their April fifteenth extension.
(39:47):
They didn't file their tax return, they owed money, didn't
pay it. They filed as quick as possible in May,
and the IRS sent them a letter saying, you've kicked
you out of your offering compromise. Three hundred and seventy
five thousand dollars offer was kicked out. He now owed
almost four hundred and semi thousand dollars because of penalty.
(40:08):
Is an interest that accumulated over those four years, and
he had a six figure job and could afford to
pay it. No offer and compromise for him. So would
a partial pay installment agreement been better? Yes, statute of
limitations would have run out on three of the years
during that four year almost five years of payments. His
(40:29):
partial pay installment agreement would have been far less, and
then he would have only been left with the debt
for a couple of years, and that would have been
far less than the over four hundred thousand that he
was owing because he failed on the offer and compromise. So,
if you're going to go offering compromise route, be prepared
(40:49):
to make sure you're going to be able to stay
in compliance one hundred percent for those five years plus
the time period it takes for the to accept the offer.
So you know, the moral of the story is is, Hey,
don't let somebody convince you offering compromise that you qualify
one hundred percent without a good consultation, without a good
(41:12):
tax analysis. Make sure that, hey, you're going to qualify
for what you're paying for, and then and only then
should you move forward with that offer and compromise and
make sure you understand the rules and regulations behind any
offer and compromise, and then weigh out with you're enrolled agent.
(41:35):
Like you would hear a Taxation Solutions tax relief, you
would weigh out the benefits and the costs of doing
a partial pay installment agreement versus an offer and compromise.
How much more or less is it going to be.
Sometimes we're able to put in a partial pay installment
agreement and it becomes less than what the offering compromise
(41:56):
is going to be because of some of the leniency
the IRS has with writing off expense expenses. And the
only way you're going to know this is by calling
Taxation Solutions Tax Relief dot net. Go to Taxation Solutions
dot net. Get that information out there. Hey, as we're
coming to a close here today, you know what I
suggest you know strongly is go to tax talkf YOUU
(42:20):
dot com, subscribe over there and never miss an episode.
Let's just continue to give you the information that you
need to learn more about your taxes, bookkeeping, tax relief,
what you need to do, how you need to file,
how you need to save money, planning, budgeting, the whole works.
If you have an IRS problem, go to taxation solutions
(42:42):
tax relief and fill in the forms there or give
us call it eight eight eight nine three zero one
zero one six again eight eight eight nine three zero
one zero one six and get the tax relief you
need to save yourself money on your taxes and your
tax debt. Hey, don't forget to tune in here every Monday,
(43:03):
ten am Eastern time at tax Talk for you. If
you subscribe, will remind you. Go to our Facebook page.
We'll remind you. But again, go to tax Talk before
you dot com and subscribe there. Every Monday ten am
is your time right here on top for tv A
W four CUI Radio, and we will see you next week.
(43:23):
Oh God bless glorious week.
Speaker 2 (43:27):
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 and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some release,
(43:47):
Then you need Tax Talk for you, hosted by tax
and trucker expert Barry g. Fouerda Kenyan, ten am Eastern
time every Monday right here on W four forr CY
Radio and Talk for TV. Don't forget to check this
and past episodes at tex TALKFORU dot com. See you
(44:08):
next week at W four c Y dot com
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
(00:21):
W FOURCY Radio.
Speaker 2 (00:27):
Barry gen Fouler EA brings you tax talk for you
right here on W four CY Radio and Talkboard 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.
Speaker 3 (00:51):
For individuals and businesses just like you. So let's have
some tax talk for you with your hosts. Barry gen Foulay,
welcome man, We're Monday.
Speaker 4 (01:06):
Hey, let's get off to a good start this week.
You know, we all got up. It's a great day.
Sometimes days like this can be hard days. Sometimes it's
an easy start to the week. You know, we make
what we make out of It depends sometimes on your attitude.
Sometimes your attitude depends on other people. You let the
(01:29):
other people's attitudes roll off your back and let's get
started in a great week. You know. Tax deadline passed
back on April fifteenth. Now what do you do. Do
we just ignore taxes for all of twenty twenty five
and act like it's not there. Do we start planning?
What do we need to do? Maybe you didn't file
(01:52):
and you have an extension and you need to get
ready to file your taxes, you know, before October, or
if you running a partnership or an escort, you've got
to get them filed in September. So everything is about
getting ready, being ready, and following through with either your
(02:14):
plan or you know, the items that you need to
take care of in twenty twenty five. So, whether you
filed your tax return or filed an extension, one of
the first things you need to be paying attention to
is do you have to make estimated tax payments? That
first estimated tax payment was also due April fifteenth, and
(02:35):
that kind of double witching hour out there they get
to hit with twenty fours taxes, and then you got
to start paying on twenty five taxes. So if you
are running a small business or maybe you under withhold
on your W two paycheck, you possibly have to make
estimated tax payments. Now, the IRS isn't really nice about this.
(02:56):
They don't truly give you quarterly estimated tax payments that
you would think of. You know, the first one was
due April fifteenth, your second one is due June fifteenth,
then September fifteenth, and then all the way to January
fifteenth of twenty twenty six. Those are the four estimated
tax payments you are required to make if you're required
(03:17):
for estimated taxes, and you've got to make sure you're
paying those in and paying the right amount to avoid
penalties and interest on estimated tax payments. It becomes as
simple as that. We have a whole podcast on estimated
tax payments. If you need to know how to figure
those out, go to tax talkforu dot com. Subscribe there,
(03:38):
and then you can see all the prior podcasts and
find the one that has estimated tax payments on it
as well. Now, so maybe you don't have to make
estimated tax payments, but you did your estimate for twenty
twenty four and you found out that hey, you're going
to ohs, but you didn't want to file. Then, unfortunately,
(03:58):
the IRS did require you to pay all taxes due
for twenty twenty four, at least up to ninety percent
of them. And you know on April fifteenth or before,
whether you filed or not, that extension of time is
only the file not to pay. So maybe you're going
(04:18):
to still, oh, what do you do? You know, we
kind of suggest going into IRS DOT go go in
and make payments, make periodic payments on that even up
to the time that you file. Make sure you record
those payments properly in the right year or the right
tax and that way, maybe the penalties are reduced a
little bit less interest and you're making the initiative to
(04:42):
pay on it, or maybe you've already filed and you ow.
We'll kind of get into that in a few minutes
in talking about what to do when you owe, and
maybe you don't just owe for twenty twenty four, but
maybe you owe for twenty three, twenty two, twenty one.
You know, those are the kind of things that you
you've got to deal with because interest and penalties continue
(05:04):
to mount month after month on the taxes that you. Oh, now,
if you're running a business, you maybe your partnership, maybe
your escort, and you need to file those taxes. Hey,
one of the things that you need to do being
in business is have good bookkeeping. You know, bookkeeping is
(05:25):
not a guestimate. You know, we've had clients come to
us with guestimates, and how do you know it's a
guestimate because of the inconsistency or the consistency of the
numbers inconsistent with normal operations of business. You know, we
have been doing taxes a very long time. We kind
(05:46):
of can tell when somebody is just providing us numbers
that they just decided to give you on a whim.
And if we can tell it without any extensive you know,
AI or logarithms on these, the IRS is going to
tell by their extensive computer analysis that they continued to do.
(06:08):
Or maybe you came to us with round numbers. See
this is an IRS red flag. And you know we
talk about IRS red flags all the time, but round numbers.
So if you are a trucker, by the way, we
do trucker bookkeeping. So if you get a Trucker Tax
Tools dot com. You can sign up over there for bookkeeping.
It's just strictly twenty five dollars a week, simple, easy,
(06:31):
cost effective keeping up with your bookkeeping. But we've had
class come to us with round numbers. You know, if
you're out there transporting goods and you're going to tell
us that your maintenstrument repairs was forty thousand, your fuel
was fifty thousand, your travel meals was ten thousand, office
(06:52):
supplies were two thousand, insurance was sixteen thousand. See, these
are all round numbers. The huge red flags in the
IRS's eyes. They know you didn't take the time or
effort to actually put true numbers together. And yes, it
takes time. It takes effort to put numbers together that
(07:14):
are true and accurate. Regardless of what business that you're in,
you have to take the time to do that. So
when's the good time to start doing bookkeeping? Well, actually
the best time was starting January, you know, start the
new year off in doing bookkeeping and your commitment to bookkeeping.
If you didn't start, then the next best time was
(07:34):
starting February. And what's the next best time? Right now,
get yourself caught up this year's bookkeeping. Get yourself up
to date, so you know, hey, where is my business going?
You know, we talk about the benefits of bookkeeping, you know,
and when we're talking about taxes, the benefit is having
good solid numbers you can support through bookkeeping. What's really
(07:59):
the best reason? Yeah, you know, having good salid numbers
for taxes is a top five reason. But the number
one reason to do bookkeeping and have good bookkeeping is
that you have good financial numbers to know where your
business is, where it's been, and help you to plan
(08:22):
going forward where you want it to be. So if
we don't use just bookkeeping for tax purposes, we use
our bookkeeping to help give businesses information to run their
business better. Hey, we had a question come in from
(08:44):
June asking about the twenty five dollars offer. But the
twenty five dollars offer is for our truckers. Yes, we
can put together a package for you that's very competitive
for your business. If you give us a call at
Trucker Tax Tools, we can give you a quote. Trucker
(09:08):
Tax Toles is set up specifically for truckers, but yes,
we do do some other businesses out there as well.
I have been in this industry of bookkeeping and taxes.
For close to now forty years, I've been helping small
businesses across the nation put together information and save money
(09:33):
on taxes, minimize their tax bill, maximize their profit, keep
more money in your pocket. That is what we are
all about, and helping people to beat the irs then
and keep your money lower that tax build down, Jim Judy,
(09:56):
do we have smaller plans for very small businesses with
less than four two thousand a year coming in. Unfortunately,
that is our lowest possible cost out there. All of
our work here is done here in the US. We
do not sub it out anywhere else. So you can
give us a call at eight seven seven nine nine
(10:17):
six two four seven seven, or you can go to
truck or tax tools dot com and you can schedule
a time for us to talk to you so that
we can put the right plan together. You know, what
we try to do is help people, and that's what
we're here to do. And when we come back after
this break, we're gonna talk more about getting things ready
(10:39):
for filing your ESCORP or your partnership return that you
may have on extension, and we'll do that right after this.
Speaker 2 (10:47):
We have only scratched the surface of place show. Please
stand by us.
Speaker 3 (10:52):
Barry G.
Speaker 2 (10:52):
Fouler will be right back with taxmark for you. If
you own diio or going through an IRS audit, don't
go at it alone. Called Taxation Solutions tax Relief at
eight eight eight nine three zero one zero one six.
We are your solution for IRS TETs, audits, back taxes, garnishments,
(11:18):
leans and levees. Whether you're an individual or business, you
need a solution and a strong aggressive tax resolution.
Speaker 3 (11:27):
Don't let the IRS walk go over you.
Speaker 2 (11:30):
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.
Speaker 3 (11:47):
Let's get back.
Speaker 2 (11:48):
To tax talk for you with more taxtock once again.
Here's your host, Garry G.
Speaker 3 (11:54):
Foller.
Speaker 4 (11:57):
Hey, welcome back. You know we're gonna talk a little
bit here about you know, es corps, limited liability companies,
partnerships and the filings you've got to do. And you
know what you should be doing and preparing for these
filings that you may have an extension. You know, limited
liability companies and es corps. You know if spending on
(12:18):
how they're set up will depend on what you really
need to file. And what I tell people to do
is first thing to go back and look at your
ei IN letter, your employer identification number that you've got.
You establish your business and you went to the IRS
and filed the proper forms. That form will tell you
exactly what you need to be filing. And so if
(12:39):
maybe twenty twenty four was your first year in business,
go back and look at that employer Identification number letter
and see how it says the file. Now, we ask
everybody that becomes a client of ours, especially first year clients,
to get us at a ei IN letter because we
want to see what's how you were set up. Because
(13:00):
in LLC can be set up several different ways, and
you know the first way is a single member and
files on schedule C. Well, that goes with your ten forty,
so there's no extra filings besides your schedule CE with
your ten forty. Sometimes they're set up as multi member
companies and those would have a partnership filing. But we
(13:21):
have clients that come to us and say, oh, no,
I have this LLC and it's set up as an escort.
So we asked for the AION letter we asked for
the es CORP election letter so that we can verify
how this was actually set up, because what you think
you set up with the state because you said you
wanted to be an escort that is not a state designation.
(13:42):
That is an election through the iers and has to
be accepted in order to become effective, and they will
give you effective date. And then you've actually got to
make sure that if you opened up this LLC, you've
actually done business under the LLC. Somebody laughed at me
when I said that we have a client that came
(14:04):
to us it opened an LLC, but continue doing all
his business underneath his DBA. And he said, I was
talking to another person who did this, and they said, yes,
it's okay. Just open the LLC and all of a
sudden you're an escort. That doesn't happen, and all of
a sudden, all the business is underneath it. Nobody told
(14:24):
me I had to open up a separate new bank account.
Nobody told me we had a new employer identification number,
so that we have to run and give all everybody
we're working this employer identification number and run the business
through that other new bank account. Now my old bank
account for my DBA. Then they set up payroll where
(14:45):
they set up payroll not for the escort, but for
their DBA. See, you got to know more about business
and things that you're doing than your next door neighbor
or the guy that you see at the fuel or
somebody that you're sitting in a bar with and is
giving you advice. That advice is only what you paid
(15:08):
for it. It's worth zero nothing out of Get a consultation,
Talk to somebody, Talk to a CPA, talk to enrolled agent,
not to somebody that knows the ins and outs of
taxes in the tax code, so that you have the
right information and the knowledge to run your business the
right way. Now, see what happens. You set yourself up
(15:30):
as an LLC and you are a multi member, which
you forgot to put down that there were more than
one member on your application for your employer identification number,
and so the IRS expects it to be reported on
a schedule. See now you added the other member out there.
That's fine. It can be reported as a partnership without
a new election, because now you have a partner in
(15:53):
your business. But that partnership return is in due April fifteenth.
It was due March fifteenth. If you didn't file an extension,
you're now late. If you file the extension on April fifteenth,
that extension is denied and you are now late. And
now the IRIS tax on penalties for late filing, and
(16:14):
it is about four hundred dollars each member of your partnership.
There's limits on that, but they're going to continue to
tack that on until that return is filed. So what
do you do today? Hopefully you got bookkeeping done for
twenty twenty four, you give us a call. Let us
get started. Get that tax return filed so we can
limit the penalties. And if it's your first year, we
(16:36):
can go after penalty abatements and hopefully get it abated
so that you won't have to pay those penalties on
that partnership return. Maybe you've been a partnership for a
number of years and you've been reporting in on scheduled See,
what do you need to do. We need to go
back and amend and file the back years of taxes.
Now they could have some benefit to it because on
(16:58):
a partnership return, you will designate what is considered to
be a guaranteed payment and that's the only part it's
going to be tax for Social Security and Medicare, whereas
on the schedule to see the whole net profit was
taxed for Social Security, Medicare and profits gets split between
partnerships based on your percentage of interest. So you know,
(17:18):
there's different ways we've got to go through and do it.
Sometimes we can save you money by doing this and
getting it filed correctly. Then it is to have it
filed the incorrect way and continue to maybe accumulate penalties
and interest. So you got to know what you're doing.
Sometimes you need the advice and sometimes it's paid advice
(17:41):
and a console that does it. Or sometimes you need
good bookkeeping so that you know, hey, you've got the
information to be able to do your tax is the
right way. Give Trucker Tax Tools a call at eight
seven seven nine nine six two four seven seven and
let's get started today. Let's get that filed for you
as an owner operator, as an independent trucker. Hey, there
(18:03):
is nothing better for you than low cost weokkeeping help
save you money. And yes, as we were as answered
June's question about well that twenty five dollars offer, can
we do it for other businesses? We've got other options
for different businesses across the board. It is about the
(18:23):
same as that twenty five dollars a week. We give
us a call, let us give us give you a
quote for that so that, hey, we can get you
started and get things done you know, the right way
as soon as possible. Don't wait because you need the
information to run your business. You need good information to
save money on taxes. You need the advice in the consultation. Again,
(18:46):
give us a call at eight seven seven nine nine
six two four seven seven. I've got people tell me
I don't give out our phone number enough to help.
So you know, if you go over to tax tak
for you, you can watch these podcasts out there and
catch our number at scroll at the bottom. You can
also go to truck or tax tools dot com and
(19:08):
catch our number over there and give us a call directly.
It's a free console, free phone call. We try to
make it easy as possible for you. Again eight seven
seven nine nine six two four seven seven Hey es
corpse escorps again had that same deadline of March fifteenth. Now,
if you were a corporation when you set up your company,
(19:33):
so you know it ends in inc or it ends
in company. You know, you've got to company out there.
You've applied for your Employer Identification number and you put
in INC at the end, and you put in that
you wanted it to be an ESCORP. The IRS sends
you that EI in letter back and says you have
to do step one, step two, step three to get
(19:58):
the application for es CORP status. If you didn't do that,
the IRS is going to tell you have to filed
on eleven twenty. That's not an ESCORP return. That's a
corporate return. That's like EXI mobiles where the company pays
the tax and then when money gets distributed to you,
it's a dividend, and then you pay the tax on
(20:18):
it as well. So therefore you got hit with double taxation.
You get hit at the corporate level for taxes and
then the distribution out to you as a dividend is
tax on your personal return. And so therefore this is
what we call double taxation. So you need to really
look at it and make sure you doted your eyes
(20:39):
and cross the t's and got your es CORP application submitted. Now,
right after this break, we're going to talk about what
you need to do real quick to save yourself from
this and what you can do if you forgot the
file for an ESCORP status for twenty twenty four. We'll
do that right after this break.
Speaker 2 (20:58):
We have only scratched the surface of today's show. Please
stand by as Perry 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. Trucker
Tax Tools handles all your bookkeeping and taxes.
Speaker 3 (21:18):
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.
Speaker 2 (21:27):
Trucker Tax Tools makes your life run smoothly.
Speaker 3 (21:31):
Go to Trucker tax Tools.
Speaker 2 (21:32):
Dot com for a free guide that will give you
the tools to never.
Speaker 3 (21:37):
Worry about your taxes again.
Speaker 2 (21:39):
Call Trucker Tax Tools eight seven seven nine sixty six
two four seven seven or go to Trucker tax Tools
dot com now and let the experts keep you trucking.
Let's get back to tax stock for you with war
tax Stock once again, here as your host Reg Ballum.
Speaker 4 (22:05):
So you got your company, you went back and looked
at that EI letter and you go, oh my gosh,
you told me I have to I filed eleven twenty
and I really wanted to be an escort. I really
messed up, and we wanted an effective January one, twenty
twenty four, or some period of time in twenty twenty four.
When you set up your company. You know, now, what
(22:27):
do I need to do? Well, there's late election relief.
You can put on your corporate tax return. You're eleven
twenty s this is my initial return and include the
twenty five point fifty three eighty eight thirty two and
affirm that you wanted this to be effective January or
(22:49):
whatever date in twenty twenty four when you started this company,
and the IRS will usually grant this relief. I don't
give you guarantees and what the IRS is going to do,
but yes, for the most part, the IRS would grant
late election relief for this. Now, with being an escort,
you had to followed all the rules, and yes, you
(23:11):
would have had to be an owner working in the business,
would have had to been on payroll. If you didn't,
the IRS the first year is not going to hold
it against you that I have seen. Again, no guarantees
what the IRS is going to do because they expect
a reasonable salary for the owners in the business. But
(23:33):
go ahead and make that election late election and ask
for the relief. IRS should grant that in your first year,
and that way you can still report things as an escort.
But then make sure for twenty twenty five you're doing
everything right. If you're not sure, hey, give us a
call and you know, let us go through and do
(23:55):
a consultation with you. Let us talk a little bit
more about everything you've got to do as an escort
and make sure that you're protecting yourself and your business
across the board, not just for taxes, but also you know,
making sure that you're running the business the correct way
(24:16):
within all the guidelines that you've got to run a
business to do. And if you're looking for the legal
liability limitations, hey, we tell you to call an attorney
and talk to an attorney about that to make sure
that you have the liability protections that you wanted when
you set up this corporation or the limited liability company,
(24:40):
so that you know you're protecting yourself and your personal
assets outside of business. Is there, But that takes an
attorney to talk about those items for you. All right,
I know you've been waiting for it. You owe the
IRS money. Now, what do you do? Stick your head
(25:02):
in the sand, ignore it. It'll go away, won't it.
Wait a minute, what did you just say. I can
stick my head in the sand and ignore it and
it'll go away. Oh heck, No, IRS isn't going to
let you get away with owing them money. Now, if
you've voted money for a number of years, you've seen
the love letters that the IRS. Since you owe, you
(25:23):
need to pay us. That's the way it works. You know,
the IRS isn't the biggest baddest collection in tocy in
the world for no reason at all. If the IRS
wasn't there, how many people would actually file their tax returns.
I don't know that could count many, because even though
you're voluntarily reporting supposedly your taxes, is still a requirement
(25:46):
that you've got to file your taxes every year. And
if you don't, the IRS can file a tax return
on your behalf, which isn't a good thing because they
don't take all the deductions. They don't give you every
deduction that you're in title to. They give you what
they see fit to. You know, get their tax returns file.
Don't let the IRS file the substitute for return and
(26:09):
come after every dime that you've got. See, this is
where your taxation solutions tax relief comes in. We're your
representation for strong aggressive tax resolution to put the IRS
out of your misery, get the IRS monkey off your back,
not letting them walk all over you. We get to
stop them, but it starts with you calling eight eight
(26:31):
eight nine three zero one zero one six again eight
eight eight nine three zero one zero one six taxation
solutions tax relief to get that IRS monkey off your back.
But in one of our previous podcasts we talked about
do it yourself IRS representation one on one. Hey, everything
you need to know on everything you need to do
to represent yourself against the IRS can be found at
(26:54):
tax Talk for You on one of our podcasts, go
tax talkfor YOUU dot com and you can see that.
But you know you have options. Some of the options
aren't the best options. Some of the options you qualify for.
Some of the options you can't qualify for. You know,
the simple one everybody qualifies in some way, shape or form,
is going to be an installment plan. You owe the
(27:17):
IRS money. Pay them, that's what they say, pay us
every dime that we want. When you call the irs.
The IRS is going to take how much you owe them,
and they're going to look at all the years you
owe for and they're going to take that money and
divide it up over the statue of limitations. And some
of the statutes are going to require higher payment because
(27:38):
maybe a two thousand and fifteen tax debt is only
going to have a year or two before the statute
runs out, So that's going to increase your payment by
quite a bit depending on the amount that you owe.
And then each subsequent year will have a little bit
greater statue of limitations before it runs out. So it's
(27:59):
a total ten years from when you file and accept it.
So that twenty fifteen return you filed in twenty sixteen,
you know, we'll still have another year to go to
twenty fourteen tax return as long as you didn't do
anything that extended, the statute of limitations would be running
out at some point this year. So if you filed
(28:20):
an extension in twenty fifteen and you didn't file until October,
well then you have until October before the c sets
kick in. And that's where a good tax analysis would
be ideal for you to be able to determine. You know,
what are the statute of limitations? Why does the IRS
require or say that I owe this money and we
(28:41):
can go back in and look at it. Maybe they
filed a substitute for return many years ago and that
is the reason that you owe money. Or maybe you
got audited but you never replied and is the reason
you owe money. There's a lot of different options out
there of reasons why people owe the IRS money, including
just hey, ignoring it and thinking it's going to go
(29:04):
away and it doesn't. You know, those are the hard
parts in life, is you know, filing taxes and when
you're self employed running the small business, maybe even running
a consulting business on the side, or maybe you've changed
employers and you didn't have enough withheld from your paycheck
all reasons. You know, maybe you started a business and
(29:27):
you didn't have a consultation with anybody about requirements of
things that you need to do, and you never paid
any estimated tax payments and now you've got a huge
tax bill. So you know, if you're making good money
and you can't qualify for any other program, installment agreement
and work. Now the interest rates are sometimes pretty high.
Maybe you can go to the bank, get a lower
(29:48):
interest rate, and you can stop penalties, and that may
be the best thing you know for you for yourself
to save money and cut interest down. You know, what
you need to do is sit down and look at
what the IRS interest rates are, how they're going to
continue to calculate penalties, especially if this is a new
(30:09):
tax debt for you, older taxdeds just accumulating interest but
may not be accumulating any more penalties. And maybe we
need to go after some penalty abatement to remove some
of the penalties that are for you, because you know,
we're able to sometimes abate penalties, but again it's subject
to IRS approval, so sometimes it's hitting this. You know,
(30:30):
it depends on the IRS out there. We've done a
very good job of removing penalties as well, but everybody's
situation is different. The i r S is going to
look at each situation a little bit differently, and then
we look at all the different other programs that are
out there that the I R S has. So after
(30:51):
this break, we'll talk about what other options besides a
full pay installment agreement, and we'll talk about it right
after this.
Speaker 2 (31:00):
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
(31:21):
com a solution filled specifically for truckers. Trucker tax tools
dot Com makes your wife 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 (31:39):
Fowler.
Speaker 4 (31:41):
Hey, welcome back. This must be the jay to day
for questions. So I got a question from Jeff and
yes heard you do a little bit of ranching on
the side. What do you have on your ranch? Well, Jeff,
you know, it's kind of funny we kind of talk
about h you know with some of our clients out
(32:02):
there of you know, what do we do, you know,
farm ranch And when we get a new client in,
you know, owner operator, truck driver, you know, I like
to get to know a little bit about what they do,
and they always ask me what I do. So you know,
I know, Jeff, you and I've talked and uh yeah,
I run a twenty nine acre ranch just outside of
(32:25):
northwest Houston. Here. We've got about eight head of cattle
out there, a couple of bigs. Now we're close to
one hundred chickens. They are layers, and uh, we've got
about thirty meat birds that were raising for for me,
and a couple of donkeys and you know, and of
(32:48):
course dogs that we have a lot of fun. We
were building or adding on to the chicken coops this
weekend and building a what we call chicken tractors so
that our meat birds we can move them around the
ranch and they can continue to eat the grass and
fertilize along the way. So those are some of the
(33:09):
fun things we get to do on our weekends, and
you know, even our evenings when we get back, you know,
collecting eggs and making sure the chickens are fed and
pigs are fed and fun things like that. But hey,
what people really tune in for, Jeff is you know,
taxes and bookkeeping, and you know that's what we're here
(33:31):
to do. Maybe one day we'll have a whole day
on farming ranch taxes out there, because it's an interesting
field out there, you know, dealing with farming ranch taxes
as well. And I got a lot of owner operators
out there that are are ranchers as well that run
some farms and and stuff. So, hey, I'm glad you're
(33:53):
here and in joining us out here at tax Talk
for You and again go to tax Talk for You
dot com and you can see all of our other episodes. Hey,
but what you really wanted to know is what are
my other solutions to my tax debt? You know, we
tell you to call taxation solutions tax relief. Go to
Taxation Solutions dot net in Taxation Solutions dot net. A
(34:19):
lot of information there on solutions to your tax problem.
And you know we can help save money on taxes
and you know, put the right solution in place so
you might be able to qualify for what we call
c NC currently non collectible status. Currently non collectible status
(34:42):
means you have very little income coming in and you
can't afford to make any payments, and the IRS will
put you in that status for at least two years.
They will periodically come back and ask for verification of
income to make sure that you can still maintain in
this status. If statute of limitations is going to run
(35:04):
out pretty soon, the I R S is going to
jump through quite a few hurdles to make sure that
you can't afford to pay them, and that includes your assets,
and you know, whether it's your home, your IRA's four
oh one k's, all these different things that are assets
to you, even jewelry or paintings and stuff like that,
(35:28):
to make sure that you can't afford to pay them.
But the biggest one is going to be income. A
lot of times we can help show to the irs
that no, you can't pull this money out of your
IRA or four one K to pay them because you
need this money to live on, because maybe you're retired.
(35:49):
But if you want to find out more information, give
us a call it eight eight eight nine three zero
one zero one six again eight eight eight nine three
zero one zero one six and we'll be able to
walk you through it or help you especially you know,
if you're going to qualify for c NC. Now there's
two other options out there, and these are options you
hear about on the radio, and people try to sell
(36:11):
you on these things day in and day out, and
when you owe money to the I r S, these
sound fantastic, sound great offer and compromise where you're going
to pay far less than what you owe. Or somebody
you know used to say all the time. Pennies on
the dollar. Hated that comment. But nobody ever guarantees it's
(36:34):
it's something you can't really guarantee that you're going to
get accepted or qualify for. You know, we sit down
and we talk to you about the different various options
offer and compromise. If you meet all the qualifications, it's fantastic.
It can save you a lot of money. If you
(36:55):
don't quite qualify for all, that partial pay installment agreement
could be the better option where you pay over a
longer period of time during the whole statute of limitations,
but you pay far less than what you owe. So
you got to look at what the offer amount is
going to be and what the partial pay installment agreement
(37:16):
might be, and then look at the strings that are attached. See,
there are strings to an offering compromise, and people don't
talk about this. You know, you have to stay one
hundred percent in compliance with IRS rules and regulations, meaning
filing taxes on time, not owing any money when you
file your taxes. If you do, oh, it's fully paid.
(37:38):
You've made your estimated tax payments all throughout the year
and every year. This compliance isn't one year one time.
It's five years from when it's accepted, but it starts
with the year that you put the offer and compromise in.
So if you were to file and offering compromise, let's
(37:58):
say you file that offering compromise today, you would have
had to make sure that you made the first estimated
tax payment that was due back in April, if you're
required to. If you didn't do that, the IRS when
they start reviewing the offer, before they even take the
offer in as a true offer, they tell you you
have to make that first estimated tax payment or if
(38:19):
you file it the end of June or into July
or August, then you've had to pay both estimated tax
payments for twenty and twenty five. If you didn't, they
would just return the offer to and you start all
over again. It's not a oh me bad, No, it's
all new paperwork they go through. If you can't be
in compliance, maybe that partial pay installment agreement is the
(38:43):
right way to go. You know, partial pay installment agreement
does require compliance. I mean you got to file on time. Still,
with the difference between partial pay installment agreement and an
offer and compromise is you've been paying on the debt
for a period of time. Once the statute of limitations
runs out on the oldest year, that debt is gone
(39:03):
for good offering compromise, that statue of limitations stopped running.
You're in a five year one hundred percent compliance. If
you fill out a compliance four years eleven months into it,
you still owe all the money that you owed at
the time of the offer, plus anti penalties and interest
(39:24):
that accumulated over those period of time. How do I
know this is true? It's written is in the code.
I also had a client came to US many years ago.
You came to us, had an offering compromise that was accepted,
and it was accepted four years, eleven months, twelve months,
almost twelve months. They didn't file their April fifteenth extension.
(39:47):
They didn't file their tax return, they owed money, didn't
pay it. They filed as quick as possible in May,
and the IRS sent them a letter saying, you've kicked
you out of your offering compromise. Three hundred and seventy
five thousand dollars offer was kicked out. He now owed
almost four hundred and semi thousand dollars because of penalty.
(40:08):
Is an interest that accumulated over those four years, and
he had a six figure job and could afford to
pay it. No offer and compromise for him. So would
a partial pay installment agreement been better? Yes, statute of
limitations would have run out on three of the years
during that four year almost five years of payments. His
(40:29):
partial pay installment agreement would have been far less, and
then he would have only been left with the debt
for a couple of years, and that would have been
far less than the over four hundred thousand that he
was owing because he failed on the offer and compromise. So,
if you're going to go offering compromise route, be prepared
(40:49):
to make sure you're going to be able to stay
in compliance one hundred percent for those five years plus
the time period it takes for the to accept the offer.
So you know, the moral of the story is is, Hey,
don't let somebody convince you offering compromise that you qualify
one hundred percent without a good consultation, without a good
(41:12):
tax analysis. Make sure that, hey, you're going to qualify
for what you're paying for, and then and only then
should you move forward with that offer and compromise and
make sure you understand the rules and regulations behind any
offer and compromise, and then weigh out with you're enrolled agent.
(41:35):
Like you would hear a Taxation Solutions tax relief, you
would weigh out the benefits and the costs of doing
a partial pay installment agreement versus an offer and compromise.
How much more or less is it going to be.
Sometimes we're able to put in a partial pay installment
agreement and it becomes less than what the offering compromise
(41:56):
is going to be because of some of the leniency
the IRS has with writing off expense expenses. And the
only way you're going to know this is by calling
Taxation Solutions Tax Relief dot net. Go to Taxation Solutions
dot net. Get that information out there. Hey, as we're
coming to a close here today, you know what I
suggest you know strongly is go to tax talkf YOUU
(42:20):
dot com, subscribe over there and never miss an episode.
Let's just continue to give you the information that you
need to learn more about your taxes, bookkeeping, tax relief,
what you need to do, how you need to file,
how you need to save money, planning, budgeting, the whole works.
If you have an IRS problem, go to taxation solutions
(42:42):
tax relief and fill in the forms there or give
us call it eight eight eight nine three zero one
zero one six again eight eight eight nine three zero
one zero one six and get the tax relief you
need to save yourself money on your taxes and your
tax debt. Hey, don't forget to tune in here every Monday,
(43:03):
ten am Eastern time at tax Talk for you. If
you subscribe, will remind you. Go to our Facebook page.
We'll remind you. But again, go to tax Talk before
you dot com and subscribe there. Every Monday ten am
is your time right here on top for tv A
W four CUI Radio, and we will see you next week.
(43:23):
Oh God bless glorious week.
Speaker 2 (43:27):
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 and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some release,
(43:47):
Then you need Tax Talk for you, hosted by tax
and trucker expert Barry g. Fouerda Kenyan, ten am Eastern
time every Monday right here on W four forr CY
Radio and Talk for TV. Don't forget to check this
and past episodes at tex TALKFORU dot com. See you
(44:08):
next week at W four c Y dot com
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