November 3, 2025 • 46 mins
• Tax questions and answers during government shutdown on TaxTalk4U.com Government shutdown who’s working at the IRS. Due to the current lapse in appropriations, IRS operations are limited. The tax law remains in effect, taxpayers must continue to meet tax obligations Will I get my Refund during shutdown, IRS automated services and online tools remain operational. Taxpayer Services are limited SBA 10 steps to new business startup. Business plan, Location, Structure, Business Taxes,
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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 it's 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 (00:28):
Barry G.
Speaker 3 (00:28):
Fouler 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 2 (00:59):
Barry G or.
Speaker 4 (01:03):
Hey, welcome, It's another great Monday morning to be here
talking about taxes, bookkeeping, Uh, you know, whatever you really
want to bring up. This is this is kind of
your show. I mean, you know, this is tax talk
for you. What do you need to know about your taxes?
What do you need to know about planning? What are
we doing these days? Because the i r S doesn't
(01:26):
seem to be doing much government shutdown. You know, everybody
asks who's working at the i RS during the shutdown?
You know, during government shutdown, i RS does retain roughly
let's say, fifty three percent of its workforce, right around
forty thousand people to perform the accepted and exempt activities
(01:55):
that the IRS has to do. Now, the majority of
the workforce, including most customer service representatives and audit staff,
is actually furlough. Now, there are a bunch of employees
working still at the IRS that were exempt. Those retained
(02:15):
employees primarily focused on tasks for revenue collections. Imagine that
they still want their money national security, preparing for the
upcoming tax filing season. You know, these are funded by
non annual appropriations and as such, the money from the
(02:37):
Inflation Reduction Act key functions. Now, the staff that is working,
they are working to process tax returns with payments through
processing returns, requesting refunds is largely suspend it. Imagine that
they're not going to send you your money. They still
(02:59):
want to process their money, so they're not going to give,
but they will take. Isn't that a fun thing? You
know you owe the IRS money, They're going to make
sure that they're going to get it from you, But
they owe you well. You know, you should have filed
by October fifteenth. You may have gotten the money by now.
(03:21):
You file after that, it's probably delayed processing. So just
remember you may have a delay if you had a
refund coming back. Testing and preparation for the upcoming tax
filing season, now this is important. See if they don't
continue to work at fixing their forms and how information
(03:47):
is accepted through electronic filing, then the twenty twenty six
filing season would be very much delayed. They're usually slow
at this anyway, but they've got to get their computer
systems up and going and ready so that they can start.
It's accepting returns as soon as possible and getting refunds
out as soon as possible in twenty twenty six. So
(04:13):
having somebody there that's going to be testing and preparing
for this stuff helps facilitate both money coming into the
IRS by people early filing and paying their taxes or
paying their estimated taxes and getting refunds back out for
those that are normally getting refunds so that these returns
can be processed properly, promptly, timely. So right now they
(04:37):
have limited and we mean limited live telephone customer service assistance.
It is still available because most of the call sites
and operations are actually closed. So that being said, you know,
if you need assistance a customer service from the IRS,
(04:58):
you may be on hold a long time. You may
have to actually call a couple of different days to
finally get through. We're lucky enough we do have as
enrolled agents and those doing representation have a priority service
line so we can get through and work with the
revenue agents and stuff to facilitate moving clients documents forward,
(05:22):
or getting payment plans in place, or getting holes in place,
or even non collectible status or even getting those offering
compromises filed. Now they may not be processing them for
a little while, but at least they're filed and they're
in the queue to be worked. Criminal Investigations SI Division,
(05:44):
those people are still working. You know, they're still investigating
the criminal activity fraud things like that on the tax
returns and they're going after people, so you got to
be on look at it. If you did something wrong,
you have to worry about it. But if you're most
like most normal taxpayers, criminal investigation units should not be
(06:07):
bothering you know, unless you've really committed fraud, and you
better get an attorney if you did commit fraud and
you know you're under investigation. Information technology it's the support
for criminal or criminal critical systems out there. They're not
(06:28):
going to shut their computer systems down. They're going to
want to make sure that that computer is still generating
notices and getting them out to you that oh so,
computer systems, electricity, all that stuff's still running, and they
have to have people working in the information area to
make sure those systems are still running properly. They have
(06:50):
staff that ensure the security of government property and data systems.
You know, they're not just furlowing everybody. The property needs
to still be secured so your information is still secure.
So they do have people working in that industry and
that part of the visions to ensure that the systems
(07:15):
are also they're running and they are secure. Now, the
IRS does have some revenue agents in the Small business
and large business divisions remain although overall enforcement activity is
significantly reduced. Now that just means there's not somebody going
(07:35):
to sign off on levee in your bank account today.
Doesn't mean you're not getting the notices. It doesn't mean
that the system isn't still putting things in place that
there could eventually be levees. If you are running close
to your statute of limitations, I would almost guarantee you
one of these revenue agents is working to get collections
(07:57):
or levees against you before that statue limitations run out.
So you know you may be watching your statute of limitations,
which the statue of limitations is ten years from the
date that your tax return was filed and accepted. Now,
if they audited you, who may changes, then it's ten
years from that. So you know you filed your your
(08:18):
tax return ten years ago, you're coming up on statute
of limitations. Let's say you filed in November of twenty fifteen,
you should be at statute of limitations this month. Well,
you can bet your bottom dollar the IRS is now
doing something to get after that money. So you know,
(08:39):
watch your bank accounts. You just don't know what's going
to happen out there. And I guarantee you if you've
gotten a notice already that there's an intental levey, they
can levy at any time you know thereafter. So you
know those revenue agents revenue officers are going to be
coming after money. That's almost a given. And then you
(09:00):
can't contact anybody because you're not going to get through
regular lines just to be able to talk to somebody
at the i r S to do something. So you
really need some help and you really need to get
after it. I do tell you, tokay, call us at
Taxation Solutions. Go to Taxation Solutions dot net or call
us at eight eight eight nine three zero one zero
(09:23):
one six again eight eight eight nine three zero one
zero one six, and that's Taxation Solutions. Let us get
a solution in place to your IRS problem. Now, you know,
you know all these people that are working, and they're
working in the critical portion of the i r S,
(09:44):
and you know there are a lot of different divisions
and different parts of the i r S that are
actually referrowed that are not working, but the critical parts
of the i r S are still in place, and
you know they're mainly looking at processing again those returns
where you owe money again collections going after the money
(10:08):
that is owed to the IRS. Now, the bad part is,
you know, if you owe the IRS money and they're
coming after you today, they're trying to get the money
from you that you owe, and then you have no
way of calling in and getting that levy, lean wage
(10:29):
garnishment stopped because you can't get through to anybody. Nobody's
really working. It makes your life miserable. So if you
are in that situation again, get some help, get somebody
on your side. It's going to step into your shoes
and talk to and deal with the IRS itself. Now,
after this quick break, we're going to talk about what
(10:52):
employees and what divisions are actually furloughed not working today
at the IRS. And we'll do that right after this.
Speaker 3 (11:01):
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. If you own the IRS
or are going through an IRS audit, don't go at
it alone. Call Taxation Solutions Tax Relief at eight eight
(11:22):
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.
Speaker 2 (11:41):
Don't let the IRS walk all over you.
Speaker 3 (11:44):
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 stock for you with more tax stock
(12:05):
once again.
Speaker 2 (12:06):
Here's your host, Barry G. Ballo.
Speaker 4 (12:11):
Hey, welcome back. You know we're talking about higher s,
government higher s and government shutdown. You know, sometimes the
government being shut down is a great thing in that.
You know, Hey, if nobody is working at the I
R s or limited people are working at the I
R s, maybe they're going to be limited in collections.
Doesn't usually happen, but maybe you maybe learn that you
(12:34):
don't need to be dependent on the government, that you
can be more self sufficient. You're not there. It doesn't
affect your everyday life now, you know. For all the
government employees, yes, you know, it's it's a hard thing
not getting a paycheck and everything else. While people fight
this out, or one group's fighting for more money for
(12:54):
Obamacare that is broken, bad system, and fight for money
for illegals, the other group is you know, trying to
just pass a clean resolution, which is what should be happening,
should go forward from there, and we shouldn't be in
a government shutdown. You know, we've seen arguments on both sides.
(13:19):
I think the clean resolution is the right way to go.
Keep the government open and battle it out in Congress
the way it was supposed to be. Now, you should
have had a budget done before the fiscal years started,
which was I think starts in October, and you should
have had this done way back then. You shouldn't be
(13:39):
waiting til the last minute to set the budget. You
should be balancing your budget as well, living within your means.
You and I can't live off credit cards forever. Government
seems like it wants to. But hey, this is a
situation we're in. So what employees for the I r
S are actually furrowed? Well, it's about fifty forty six
(14:06):
percent of IRS staff is actually furloughed and placed in
a non pay nine duty status. These actual employees cannot
work until the shutdown ends. So you know, this includes
people that issue refunds. For most returns, you're waiting on
(14:28):
a refund, You're probably still waiting non auditmated collections and
audit functions. This means examinations and appeal. So if you've
got something that's actually going through an audit, they're furloughed
right now. You still have to meet your deadlines that
you had. So if you had a deadline and you
(14:50):
had to provide information to the auditor, make sure you
meet that deadline. Don't ignore it because they're not working.
They're going to come back in and go, Nope, you
didn't meet the deadline, and then you're in trouble. Same
with if you have something on appeal and you had
to appeal something by a certain date, make sure that
appeal is in before the deadline because they're still going
(15:14):
to go back to that sixty day ninety day deadline
that you had to file your appeal, and if you
missed it, then your appeal is not going to be there.
You're not going to be able to go through the appeal.
If you had documents that were due to the appeals
officer by a certain period of time, get those in.
Same thing. If you've got an offer and compromise and
(15:35):
they were asking for documents for an offer and compromise,
get it in. Meet the deadline regardless of whether that
revenue officer, the officer investigating the offer, or the appeals agent,
is they're working or not, you still need to meet
all your deadlines. So staff that respond to general tax
(15:59):
payer questions through the call sites and through correspondence. This
is you know when we were talking about audit functions,
sometimes you have correspondence audits. Well, it's the same thing.
Nobody's working behind the scenes on that. So nobody else
is working to respond to taxpayer questions through the call
(16:20):
centers and most correspondents, so there's nobody going to be
answering those things. But again, if you've got a deadline,
meet your deadlines. Don't assume that these guys are going
to extend deadline just because they're not working. They don't
have to, and by law that you have the requirements
to meet what they've set down to say, hey, you've
(16:43):
got to provide these documents in a timely manner. So
they've also got nobody working processing non disaster relief transcripts
so and income verification services. So you know, if you've
got income that needs to be verified or you've got
(17:05):
disaster relief, you're going to get still some help. But
if it's non disaster relief for transcripts or income verification.
Guess what your sol That means. Mortgage companies that are
sending in eighty two fifty three's request for information to
verify your income was reported to the IRS and they
(17:30):
can verify it for your mortgage, they're not probably getting
those processed, so you may have delays in your mortgage
mortgage if the IRS is not working handling these functions,
So you know, keep that in mind if you're going
for a new mortgage and stuff, you may have a
(17:53):
problem verifying income. Unfortunately, most mortgage companies don't believe tax
returns you or high or anybody else gives them, or
any statements from anybody else. They're looking for independent verification
from the IRS by eighty two fifty three's which gets
the transcripts for them to from the IRS and they're
(18:16):
able to get that information. So now if you're lucky
enough and they're set up to where they've got information access,
they might be able to do it through the online
IRS portals and stuff to be able to access the
information via you giving permission through system. As long as
(18:40):
you've got a log in, Hey, Gene, you know you've
got a great statement there and question. They can hold
us accountable, but we can't hold them accountable. Have you
ever been able to hold the Irs or anybody in
the government accountable for anything they do? You know, Trump
seems to be trying, but you know, again, no, you're
not going to be able to hold them accountable for
(19:03):
during this time of getting refunds out to you, getting
information out to you, this part of the government shutdown. Uh.
You know, we tell our congressman, hey, we want the
government up and we want to be able to have
the full functions of the government. But if you can't
pass a continuing resolution, you can't have every function of
(19:26):
the government going. So therefore we have to deal with
what we've got to deal with, good, bad, or indifferent,
depending on what everybody's opinion is. But in this case,
this is the way the government is working today. Another
division that's closed is Taxpayer Advocate Services. If you've requested
(19:52):
help from taxpayer advocate by filing a Form nine to
one one, you know you're going to be delayed in
getting the help from taxpayer Advocate Services, and that delay
is because of government shutdown. There's nobody going to be
working there now. The IRS, Federal government. All this combined,
(20:16):
you as a taxpayer are still required to meet all
filing and payment deadlines, but you have to expect significant
delays in services that require manual processing or interaction with
furload staff. Of course, we can't work with furloughed staff.
They're not working, So that doesn't make sense when you
(20:39):
see a statement like that that the IRS puts out.
But again, you are still responsible to meet all filing
and payment deadlines, so keep that in mind. Even during
times of government shutdown, they still expect you to do
your part in this, So you know, you've got to
(21:03):
really think about what you're doing. Make sure you're dotting
your eyes, crossing your t's, and following through. Hey, we've
got some questions about business and business startups and we're
going to be addressing that. You know, after we take
this break. Again, if you've got IRS problems, called Taxation Solutions,
go to Taxation Solutions dot net. You call them at
(21:25):
eight eight eight nine three zero one zero one six
again eight eight eight nine three zero one zero one six.
And right off this break, we're going to answer Francis's
question and talk about small businesses, and we'll do that
right after this.
Speaker 3 (21:41):
We have only scratched the surface of today's show. Please
stand by as Barry J. Bowler will be right back with.
Speaker 2 (21:48):
Tax talk for you.
Speaker 3 (21:52):
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(22:38):
tax stock for you with more tax stock once again,
here's your host, Barry G.
Speaker 2 (22:44):
Faller.
Speaker 4 (22:47):
Hey, welcome back. Hey, I love questions. We got some
great questions about small businesses and opening businesses up. First
one that I do want to answer is from Francis. Hey, Francis,
thanks for the question. Is it better to have a
small business or just run taxes on our tax form.
So I'm going to fill in the blank here. Is
it better to have a business that files taxes on
(23:10):
its own tax form or just run them on our
tax form. Now, everybody's business is different, so you know,
I'd like to tell people a lot of times that
I want to keep the trash off your personal tax return.
And sometimes that is one hundred percent worth it, depending
on the business that you're running and how much business
(23:33):
you're doing. I mean, if you're doing a small business
that you know, maybe you only make ten twenty thirty
thousand dollars gross revenues, you know, it probably doesn't matter
whether you run it on your personal tax return on
schedule see or if you were to run it as
a S corp or multi member partnership. That's out there.
(23:57):
But if you've got you know, maybe a husband and wife,
you can either do ATUALC or you can do multi
member partnership. It gives you some options. Otherwise you're a
escort or you're a C corp which files on eleven twenty.
But a lot of times I tell people, hey, we
want to get the trash off there, meaning there's too
much detail, there's too many things that can get confusing
(24:20):
when somebody runs a business, and it's better to keep
things completely separate. It's also easier if you did go
through an audit to have your business and personal completely separate.
What we tell everybody you know, first and foremost is
making sure that you have a completely separate checking account
(24:40):
for your business versus your personal and don't commingle, meaning
you're not running personal expenses through your business account and
you're not running business expenses through your personal account. So
you know, both ways. It's got to work, but added complications,
(25:02):
So it just depends on how much complications you want.
If your net income isn't very high in your business,
then it makes no difference and actually better to be
on Schedule C for you because you're not having to
spend the money to do payroll as a es CORP
and an escorp tax return that adds quite a bit
(25:24):
of expenses to your business and makes your bottom line
much smaller, ma'am. That being said, if your income is
very very strong, you know, and let's say we're going
to just use some easy round numbers, you're going to
net income one hundred thousand dollars. That net income on
a Schedule C is completely subject to self employment tax.
(25:48):
So that self employment tax is fifteen thousand, three hundred
sumidd dollars for social security and medicare. You get to
pay both sides, ma'am. As an escort. You have to
have a reasonable salary as a business owner working in there.
So depending on what your reasonable salary can be, and
we're just going to say, let's say it could be
(26:09):
fifty thousand, somebody you would pay somebody else to do
this job for you and work in your business for
fifty thousand dollars, means you could have your salary at
fifty thousand. That salary would be subject to payroll taxes.
So security and medicare same as self employment and differences.
(26:29):
The company pays half, you pay half, you're the business owner.
You're paying both halfs anyway, regardless whether it's self employment
or it's through payroll, it's just listed differently and it's
on tax forms and on W two. So you will
pay basically that seven six hundred and fifty dollars in
(26:50):
payroll taxes a self employment taxes. But on the other side,
the other fifty thousand you're not going to pay self
employment taxes on. So basically it saves you seven six
hundred and fifty dollars, but you've got to subtract out
of that the expense of having payroll and the expense
(27:11):
of having another tax return done, and corporate returns are
not the chiefest returns out there, so you got to
factor all that in. So, yes, at that point, there
is more savings for you, and it becomes worthwhile. And
you get somewhere in that borderline at seventy five thousand
or under sixty thousand and under that, hey, you're probably
(27:34):
at a break even, meaning you're saving money, but the
money you're saving is pretty much going to be going
to get the taxes in payroll. So is it really
worth it at that point? Who you pay to get
it done? That becomes debatable. How many hoops you want
to tell them through. So you know, those are the
kind of things that you know, we definitely look at
(27:59):
for you and you know, help make a decision on
you know, whether this is possible or whether or not
you should be filing or filing on schedule. See, it's
something you got to sit down and talk to your
tax prepayer with through some tax planning. You know what's
going to work best for me? You know, do I
(28:22):
want to file with my business on my return or
do I want to file it separately? You know, that
becomes the biggest question. So you know you're now sitting
here and deciding, you know, what do I want to
do in business? How do I want to look at
my tax strategy behind my business? So some of these
(28:46):
things you might need to to look at. And when
you're starting up your business, you know, you kind of
go through, you know, ten different steps to start a business,
and I like what you know the SPA does and
they put out there like there are ten steps out
there where you sit down and you first start out
(29:07):
conducting market research and writing a business plan and then
figuring out how you're going to fund your business. And
then same time you're picking location. Now, remember people talk
about location, location, location, It becomes very important depending on
the type of business you are. Now, if you're a
virtual business, it doesn't matter, but if you've got to
(29:30):
have a storefront, a shop where people come into either
to pick things up or work with you, your location
is extremely important. And as Francis said, you're talking about taxes,
but we also relate that to business structure. You're going
to be an LLC. Are you going to be an escort?
Are you going to be an inc? Are you going
(29:51):
to be a C corp? Or you're just going to
be a sole proprietor DBA. You know, you have all
those different options, but you've got to sit out and
make a decision on those options. Greg asked about choosing
your business name and how important is it. Well, choosing
a business name can be extremely important. It's one of
(30:14):
the ten steps that SBA puts out there because it's
sometimes it's not easy to pick the perfect name. You
want one that reflects your brand, captures the spirit of
your organization and what your organization does, and you've got
to make sure it's not being used as well. Hey,
we've got a couple other quick questions that came in
(30:34):
from Casey. What if your business is only making about
thirty five thousand and you can't afford to take a
salary other than about three thousand that year to do
business costs well, Casey, you know when we look at that,
you're only netting thirty five thousand having it as a
schedule CEE, you're going to pay fifteen point three percent
(30:56):
on that for social security and medicare so You're business
is actually netting less than that out there, so you
know you're going to have roughly uh, you know, that's
four thousand, five thousand dollars in self employment taxes. Part
of that's deductible on your taxes as well, but uh,
(31:20):
your net income. You know, you're not going to want
to be an es corp uh and take a salary
because you're just not going to have the cash flow
to be able to do that or the net income
strong enough to be a reason to jump over to
be an escort. Now, if you could be a partner,
you could have a partnership and we can do different
(31:40):
things with guaranteed payments and not have to be a salary.
But basically guaranteed payments is your reasonable wages, but you
can manipulate that to where you're at. James asked, what's
the different definition of a virtual business? Virtual business basically
has no location. Maybe you're running it out of your home,
(32:05):
your apartment, so you're basically doing everything remote. You're doing
everything virtually. You know, maybe you're running a website and
that's your only location and you sell products out of there,
even though you're maintaining inventory at your house. But it's
(32:26):
not someplace everybody comes to pick up merchandise or gets
services from you. So your business is completely virtual, completely online,
so you're not running a store front, so there's no
brick and mortar walls. We had a client a few
(32:46):
years ago that came to us for taxes and tax
out and his question to my staff was, you know,
are you a brick and mortar place? And she was, well,
I think there's some brick, but I'm not really sure.
So it's kind of joke. Client's been a client of
(33:08):
ours for over twenty plus years. Great client, and so
we always laugh about that. You know, using somebody that's
virtual sometimes is hard, especially sometimes in the tax business,
but has become more of the norm. Yes, we have
building here that we run our corporate headquarters out of.
(33:31):
Some of the stuff we do is virtual in different
locations because we don't need a storefront in every location
that we work in or all around the country. We
just need a facility that we can deal with the
I R S when's needed. But as far as our
clients go, we do everything via phone, via zoom, via ring,
(33:55):
via text, via phone, you know, whatever we're doing, it's
mostly virtual. Secure portals and everything else like that. So
you know, we make business is simple and easy for
people out there. But virtual can be part virtual, part
brick and mortar. You know, it depends on the type
(34:17):
of business that you're out there. Hey, we've got to
take a quick break. We're going to go through some
more of the steps of starting a business that the
SBA has. I'll even give you the SBA website. We
come back right after this.
Speaker 3 (34:30):
We have only scratched the surface of today's show. Please
stand by as Barry Cheef Fowler will be right back with.
Speaker 2 (34:38):
Tax Talk for you. As an owner operator.
Speaker 3 (34:43):
You already spend too much time away from your family.
Stop spending time doing paperwork. Go to Trucker tax tools
dot com, a solution built specifically for truckers. Trucker tax
tools dot Com makes your life run smoothly. Let's get
back to tax Talk for you with more tax talk
(35:05):
once again.
Speaker 2 (35:06):
Here's your host, Barry G. Fallum.
Speaker 4 (35:11):
Hey, welcome back. You know we talked about government shutdown
and who's furloughed and what the IRS is doing now
during the government shutdown. Hey, go find our podcasts where
on iHeart, We're on Spotify, We're on all the national
programs for hosted podcasts. Look us up at tax Talk
(35:33):
for you, or you can just go to tax Talk
the number four the letter you dot com. Again, that's
tax Talk the number four letter you dot com. And
you can follow us over there and you can see
all of our podcasts that we've had, and you can
(35:53):
listen to this one again and find out what's happening
in the government. Or you can even listen to the
part of Hey, starting your own business and the ten
steps the SBA is talking about. Now you can find
these ten steps as well at SBA dot gov Business Guide,
and it's got your ten steps out there, such as
(36:16):
conducting market research, riding your business plan, funding your business,
picking your business location, remember location, location, location, choose a
business structure and your business name. And after you've done that,
now you've got to register your business. So you can
register your business either with the Secretary of State's office
(36:38):
or your local Assume Name Division of your county if
you're just going to go with the DBA. And then
once you register your business, you've decided, Hey, I'm going
to be an LLC, I'm going to be a INC.
I'm going to be s court, whatever it's going to
be a partnership. You've got to get your federal and
(37:01):
state tax ID numbers. Now, good news is IRS may
be shut down, but as far as their website still works,
you should still be able to get your Federal Employer
Identification number by filing the SS four online. Now, if
you fill it out manually and fax it in, I
(37:21):
don't think anybody's working in that division of the IRS.
It is not a critical meet. So you, as far
as an individual goes or business goes, getting your Federal
Employer Identification number, do file online. And then once you've
got all that, you can apply for your licenses and permits.
(37:42):
And once you've got your employer identification number, you can
open up your business bank account. That was the ten
steps the SBA has for opening up your business and
starting a business.
Speaker 2 (37:55):
Hey, you got a.
Speaker 4 (37:56):
Question here from Kevin. What can you tell us about
a DBA DBA doing business as it's you getting an
assumed name for you as a sole proprietor. So Kevin's
Plumbing Services, you went out and got an assume name
(38:16):
to put that in there, or whatever your business may be.
Now that files on Schedule C gives you no liability
protections or anything else out there. Now, I'm not wanting
to talk about liability protections because I'm not an attorney,
never wanted to be an attorney. No charge legal fees. Yes,
I say that quite a bit because we want to
(38:37):
make sure that, Hey, we're protected. We're not lawyers, were
old agents. We know more about taxes than anybody else
in the world. So if you need questions about taxes,
we can help you liability attorney. But you know that
DBA files on Schedule CE. It's not going to change
any other way. If you do decide you're going to
form into a partnership either via LLC or Inc. Or Kevin.
(39:03):
You're partnering with Casey Kevin and Casey Plumbing. You now
have a partnership. You may file partnership papers as well.
You could be a limited partnership. You can just be
a general partnership and something a general partnership. You can
file through your local Assumed Name department there in your county.
(39:25):
But hey doesn't give you very many options. Now, if
you're an LLC LLC limited liability company can file either
as a schedule CE sole proprietor single member owner, or
it can file as an escort, or you could take
on a partner and file a partnership return, So you
(39:47):
have various options if you file, become an LLC right
up front. And I do recommend to a lot of
people that, hey, if you're going to get into business
and you think you're going to be successful, now, hey,
remember back into this SBA thing. We were talking about
writing your business plan. Well, that's planning for the future.
(40:09):
What is your business going to do in the future.
What kind of money are you planning to making. Well,
once you've got that plan in place, it helps you
to decide what type of entity you want to be.
And if you're going into business, you're planning to be successful.
You're not planning to lose money. Now, I do have
some people who seem to be failures at everything they do,
(40:31):
but I think they fail on purpose that they think
it's better to have a tax right off. So do
you think it's better to fail at a business to
get the tax right off or to pay the tax?
It's a good question. Now, we don't like paying taxes
in any way, shape or form. But if you were
to lose let's say ten thousand dollars and you're in
(40:51):
a twenty five percent tax bracket. Guess what, you only
save twenty five hundred dollars, you still lost seventy five
hundred dollars. So did it really do you that much
good to lose money in a business just to lose money? Now,
don't enter business unless you plan on being successful. Don't
go into business to lose money and get the right off.
(41:12):
You know, some people enter real estate and get rental
homes because they can get larger depreciation right offs. They're
into the real estate our portion of business, and they're
getting the excess write offs when they sell the property
that hopefully they're going to be in a better situation,
and then they'll have more tax because the basis of
(41:34):
the property has been depleted. But that being the case,
they could enter into a ten thirty one exchange, they
could do various other things to mitigate those taxes to
save themselves money on their investment in what they're able
to do. So there are different investment vehicles, there are
(41:55):
different ways of doing this. But I don't tell you
to enter a business unless you plan, and you have
a written plan. Plan to be one hundred percent successful
in your business. Making money, not losing money is Losing
money never benefits you in any way, shape or form,
no matter what you think, no matter what people tell you. Your
(42:18):
job is to produce income, pay more taxes, or find
ways to invest and do other things in taxes. That's
going to save you money. Boy, time flies when you're
having fun and answering questions and you're talking to people
that you find ways to help. And that's what we
do here at tax Talk for you. Hey, if you're
(42:40):
going to be in the trucking business, hey call Trucker
tax Tools. Go to truckertax tools dot com. Look at
the plans we've got bookkeeping taxes for you as truckers
and small business owner operators. Taxation Solutions dot net saves
people from the IRS and the money that they claim you. Oh,
(43:03):
even if the I R S is wrong, you've got
to fight the I R s to prove that you
were right. And sometimes you need somebody on your side. Now,
we don't take everybody. Not everybody's going to become a
client of Taxation Solutions. We sit down and do it analysis.
We'll tell you will our services benefit you, And here's why.
If our services aren't going to be a big enough benefit,
(43:25):
we're not going to take you on as a client
to take your money. We're going to give you advice
on what you need to do. Give us a call.
If you're in debt with the I R S and
the IRS is claiming you you owe them money, call
us at eight eight eight nine three zero one zero
one six Again eight eight eight nine three zero one
(43:46):
zero one six. Let us step in front, let us
solve the problem. Hey. Every week we're here at tax
Talk for you, bringing you news, bringing you information, helping
you to stay a breast the new tax law, new
things that are going on and help you fight the fight,
the good fight to save yourself from paying more in
(44:08):
taxes than you need to from finding ways to reduce
your taxes to the lowest amount allowed by law, finding
and answering your questions to get you the best solution,
whether it's taxes, tax problems, bookkeeping, uh, you name it,
tax planning. We're here to do that. So tune in
(44:31):
every Monday, ten am Eastern Time, right here at tax
Talk the number four letter you dot com again, tax
Talk for you dot com Mondays ten am on W
four c UY Radio, W four c r Y dot com.
Tune in, don't miss a show. But above all have
(44:51):
a God blessed, glorious. We enjoy the beautiful times that
we have, not just in this country, but are God
provided such great country. Let us live in here, let
us enjoy it, let us be happy. God bless you.
We'll see you next week ten am Monday, right here
at tax Talk for You dot com ten am Eastern Time.
(45:14):
We'll see you next week.
Speaker 3 (45:16):
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 relief?
(45:37):
Then you need Tax Talk for You, hosted by tax
and trucker expert Barry g. Fouer Ea Tunyan 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.
Speaker 2 (45:57):
See you next week at W four Cynight dot com.
MHM
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,
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be directed to those show hosts. Thank you for choosing
(00:21):
W FOURCY Radio.
Speaker 2 (00:28):
Barry G.
Speaker 3 (00:28):
Fouler 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 2 (00:59):
Barry G or.
Speaker 4 (01:03):
Hey, welcome, It's another great Monday morning to be here
talking about taxes, bookkeeping, Uh, you know, whatever you really
want to bring up. This is this is kind of
your show. I mean, you know, this is tax talk
for you. What do you need to know about your taxes?
What do you need to know about planning? What are
we doing these days? Because the i r S doesn't
(01:26):
seem to be doing much government shutdown. You know, everybody
asks who's working at the i RS during the shutdown?
You know, during government shutdown, i RS does retain roughly
let's say, fifty three percent of its workforce, right around
forty thousand people to perform the accepted and exempt activities
(01:55):
that the IRS has to do. Now, the majority of
the workforce, including most customer service representatives and audit staff,
is actually furlough. Now, there are a bunch of employees
working still at the IRS that were exempt. Those retained
(02:15):
employees primarily focused on tasks for revenue collections. Imagine that
they still want their money national security, preparing for the
upcoming tax filing season. You know, these are funded by
non annual appropriations and as such, the money from the
(02:37):
Inflation Reduction Act key functions. Now, the staff that is working,
they are working to process tax returns with payments through
processing returns, requesting refunds is largely suspend it. Imagine that
they're not going to send you your money. They still
(02:59):
want to process their money, so they're not going to give,
but they will take. Isn't that a fun thing? You
know you owe the IRS money, They're going to make
sure that they're going to get it from you, But
they owe you well. You know, you should have filed
by October fifteenth. You may have gotten the money by now.
(03:21):
You file after that, it's probably delayed processing. So just
remember you may have a delay if you had a
refund coming back. Testing and preparation for the upcoming tax
filing season, now this is important. See if they don't
continue to work at fixing their forms and how information
(03:47):
is accepted through electronic filing, then the twenty twenty six
filing season would be very much delayed. They're usually slow
at this anyway, but they've got to get their computer
systems up and going and ready so that they can start.
It's accepting returns as soon as possible and getting refunds
out as soon as possible in twenty twenty six. So
(04:13):
having somebody there that's going to be testing and preparing
for this stuff helps facilitate both money coming into the
IRS by people early filing and paying their taxes or
paying their estimated taxes and getting refunds back out for
those that are normally getting refunds so that these returns
can be processed properly, promptly, timely. So right now they
(04:37):
have limited and we mean limited live telephone customer service assistance.
It is still available because most of the call sites
and operations are actually closed. So that being said, you know,
if you need assistance a customer service from the IRS,
(04:58):
you may be on hold a long time. You may
have to actually call a couple of different days to
finally get through. We're lucky enough we do have as
enrolled agents and those doing representation have a priority service
line so we can get through and work with the
revenue agents and stuff to facilitate moving clients documents forward,
(05:22):
or getting payment plans in place, or getting holes in place,
or even non collectible status or even getting those offering
compromises filed. Now they may not be processing them for
a little while, but at least they're filed and they're
in the queue to be worked. Criminal Investigations SI Division,
(05:44):
those people are still working. You know, they're still investigating
the criminal activity fraud things like that on the tax
returns and they're going after people, so you got to
be on look at it. If you did something wrong,
you have to worry about it. But if you're most
like most normal taxpayers, criminal investigation units should not be
(06:07):
bothering you know, unless you've really committed fraud, and you
better get an attorney if you did commit fraud and
you know you're under investigation. Information technology it's the support
for criminal or criminal critical systems out there. They're not
(06:28):
going to shut their computer systems down. They're going to
want to make sure that that computer is still generating
notices and getting them out to you that oh so,
computer systems, electricity, all that stuff's still running, and they
have to have people working in the information area to
make sure those systems are still running properly. They have
(06:50):
staff that ensure the security of government property and data systems.
You know, they're not just furlowing everybody. The property needs
to still be secured so your information is still secure.
So they do have people working in that industry and
that part of the visions to ensure that the systems
(07:15):
are also they're running and they are secure. Now, the
IRS does have some revenue agents in the Small business
and large business divisions remain although overall enforcement activity is
significantly reduced. Now that just means there's not somebody going
(07:35):
to sign off on levee in your bank account today.
Doesn't mean you're not getting the notices. It doesn't mean
that the system isn't still putting things in place that
there could eventually be levees. If you are running close
to your statute of limitations, I would almost guarantee you
one of these revenue agents is working to get collections
(07:57):
or levees against you before that statue limitations run out.
So you know you may be watching your statute of limitations,
which the statue of limitations is ten years from the
date that your tax return was filed and accepted. Now,
if they audited you, who may changes, then it's ten
years from that. So you know you filed your your
(08:18):
tax return ten years ago, you're coming up on statute
of limitations. Let's say you filed in November of twenty fifteen,
you should be at statute of limitations this month. Well,
you can bet your bottom dollar the IRS is now
doing something to get after that money. So you know,
(08:39):
watch your bank accounts. You just don't know what's going
to happen out there. And I guarantee you if you've
gotten a notice already that there's an intental levey, they
can levy at any time you know thereafter. So you
know those revenue agents revenue officers are going to be
coming after money. That's almost a given. And then you
(09:00):
can't contact anybody because you're not going to get through
regular lines just to be able to talk to somebody
at the i r S to do something. So you
really need some help and you really need to get
after it. I do tell you, tokay, call us at
Taxation Solutions. Go to Taxation Solutions dot net or call
us at eight eight eight nine three zero one zero
(09:23):
one six again eight eight eight nine three zero one
zero one six, and that's Taxation Solutions. Let us get
a solution in place to your IRS problem. Now, you know,
you know all these people that are working, and they're
working in the critical portion of the i r S,
(09:44):
and you know there are a lot of different divisions
and different parts of the i r S that are
actually referrowed that are not working, but the critical parts
of the i r S are still in place, and
you know they're mainly looking at processing again those returns
where you owe money again collections going after the money
(10:08):
that is owed to the IRS. Now, the bad part is,
you know, if you owe the IRS money and they're
coming after you today, they're trying to get the money
from you that you owe, and then you have no
way of calling in and getting that levy, lean wage
(10:29):
garnishment stopped because you can't get through to anybody. Nobody's
really working. It makes your life miserable. So if you
are in that situation again, get some help, get somebody
on your side. It's going to step into your shoes
and talk to and deal with the IRS itself. Now,
after this quick break, we're going to talk about what
(10:52):
employees and what divisions are actually furloughed not working today
at the IRS. And we'll do that right after this.
Speaker 3 (11:01):
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. If you own the IRS
or are going through an IRS audit, don't go at
it alone. Call Taxation Solutions Tax Relief at eight eight
(11:22):
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.
Speaker 2 (11:41):
Don't let the IRS walk all over you.
Speaker 3 (11:44):
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 stock for you with more tax stock
(12:05):
once again.
Speaker 2 (12:06):
Here's your host, Barry G. Ballo.
Speaker 4 (12:11):
Hey, welcome back. You know we're talking about higher s,
government higher s and government shutdown. You know, sometimes the
government being shut down is a great thing in that.
You know, Hey, if nobody is working at the I
R s or limited people are working at the I
R s, maybe they're going to be limited in collections.
Doesn't usually happen, but maybe you maybe learn that you
(12:34):
don't need to be dependent on the government, that you
can be more self sufficient. You're not there. It doesn't
affect your everyday life now, you know. For all the
government employees, yes, you know, it's it's a hard thing
not getting a paycheck and everything else. While people fight
this out, or one group's fighting for more money for
(12:54):
Obamacare that is broken, bad system, and fight for money
for illegals, the other group is you know, trying to
just pass a clean resolution, which is what should be happening,
should go forward from there, and we shouldn't be in
a government shutdown. You know, we've seen arguments on both sides.
(13:19):
I think the clean resolution is the right way to go.
Keep the government open and battle it out in Congress
the way it was supposed to be. Now, you should
have had a budget done before the fiscal years started,
which was I think starts in October, and you should
have had this done way back then. You shouldn't be
(13:39):
waiting til the last minute to set the budget. You
should be balancing your budget as well, living within your means.
You and I can't live off credit cards forever. Government
seems like it wants to. But hey, this is a
situation we're in. So what employees for the I r
S are actually furrowed? Well, it's about fifty forty six
(14:06):
percent of IRS staff is actually furloughed and placed in
a non pay nine duty status. These actual employees cannot
work until the shutdown ends. So you know, this includes
people that issue refunds. For most returns, you're waiting on
(14:28):
a refund, You're probably still waiting non auditmated collections and
audit functions. This means examinations and appeal. So if you've
got something that's actually going through an audit, they're furloughed
right now. You still have to meet your deadlines that
you had. So if you had a deadline and you
(14:50):
had to provide information to the auditor, make sure you
meet that deadline. Don't ignore it because they're not working.
They're going to come back in and go, Nope, you
didn't meet the deadline, and then you're in trouble. Same
with if you have something on appeal and you had
to appeal something by a certain date, make sure that
appeal is in before the deadline because they're still going
(15:14):
to go back to that sixty day ninety day deadline
that you had to file your appeal, and if you
missed it, then your appeal is not going to be there.
You're not going to be able to go through the appeal.
If you had documents that were due to the appeals
officer by a certain period of time, get those in.
Same thing. If you've got an offer and compromise and
(15:35):
they were asking for documents for an offer and compromise,
get it in. Meet the deadline regardless of whether that
revenue officer, the officer investigating the offer, or the appeals agent,
is they're working or not, you still need to meet
all your deadlines. So staff that respond to general tax
(15:59):
payer questions through the call sites and through correspondence. This
is you know when we were talking about audit functions,
sometimes you have correspondence audits. Well, it's the same thing.
Nobody's working behind the scenes on that. So nobody else
is working to respond to taxpayer questions through the call
(16:20):
centers and most correspondents, so there's nobody going to be
answering those things. But again, if you've got a deadline,
meet your deadlines. Don't assume that these guys are going
to extend deadline just because they're not working. They don't
have to, and by law that you have the requirements
to meet what they've set down to say, hey, you've
(16:43):
got to provide these documents in a timely manner. So
they've also got nobody working processing non disaster relief transcripts
so and income verification services. So you know, if you've
got income that needs to be verified or you've got
(17:05):
disaster relief, you're going to get still some help. But
if it's non disaster relief for transcripts or income verification.
Guess what your sol That means. Mortgage companies that are
sending in eighty two fifty three's request for information to
verify your income was reported to the IRS and they
(17:30):
can verify it for your mortgage, they're not probably getting
those processed, so you may have delays in your mortgage
mortgage if the IRS is not working handling these functions,
So you know, keep that in mind if you're going
for a new mortgage and stuff, you may have a
(17:53):
problem verifying income. Unfortunately, most mortgage companies don't believe tax
returns you or high or anybody else gives them, or
any statements from anybody else. They're looking for independent verification
from the IRS by eighty two fifty three's which gets
the transcripts for them to from the IRS and they're
(18:16):
able to get that information. So now if you're lucky
enough and they're set up to where they've got information access,
they might be able to do it through the online
IRS portals and stuff to be able to access the
information via you giving permission through system. As long as
(18:40):
you've got a log in, Hey, Gene, you know you've
got a great statement there and question. They can hold
us accountable, but we can't hold them accountable. Have you
ever been able to hold the Irs or anybody in
the government accountable for anything they do? You know, Trump
seems to be trying, but you know, again, no, you're
not going to be able to hold them accountable for
(19:03):
during this time of getting refunds out to you, getting
information out to you, this part of the government shutdown. Uh.
You know, we tell our congressman, hey, we want the
government up and we want to be able to have
the full functions of the government. But if you can't
pass a continuing resolution, you can't have every function of
(19:26):
the government going. So therefore we have to deal with
what we've got to deal with, good, bad, or indifferent,
depending on what everybody's opinion is. But in this case,
this is the way the government is working today. Another
division that's closed is Taxpayer Advocate Services. If you've requested
(19:52):
help from taxpayer advocate by filing a Form nine to
one one, you know you're going to be delayed in
getting the help from taxpayer Advocate Services, and that delay
is because of government shutdown. There's nobody going to be
working there now. The IRS, Federal government. All this combined,
(20:16):
you as a taxpayer are still required to meet all
filing and payment deadlines, but you have to expect significant
delays in services that require manual processing or interaction with
furload staff. Of course, we can't work with furloughed staff.
They're not working, So that doesn't make sense when you
(20:39):
see a statement like that that the IRS puts out.
But again, you are still responsible to meet all filing
and payment deadlines, so keep that in mind. Even during
times of government shutdown, they still expect you to do
your part in this, So you know, you've got to
(21:03):
really think about what you're doing. Make sure you're dotting
your eyes, crossing your t's, and following through. Hey, we've
got some questions about business and business startups and we're
going to be addressing that. You know, after we take
this break. Again, if you've got IRS problems, called Taxation Solutions,
go to Taxation Solutions dot net. You call them at
(21:25):
eight eight eight nine three zero one zero one six
again eight eight eight nine three zero one zero one six.
And right off this break, we're going to answer Francis's
question and talk about small businesses, and we'll do that
right after this.
Speaker 3 (21:41):
We have only scratched the surface of today's show. Please
stand by as Barry J. Bowler will be right back with.
Speaker 2 (21:48):
Tax talk for you.
Speaker 3 (21:52):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
book can fem in 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.
Speaker 2 (22:13):
Go to Trucker Tax Tools dot com for.
Speaker 3 (22:16):
A free guide that will give you the tools to
never 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. Let's get back to
(22:38):
tax stock for you with more tax stock once again,
here's your host, Barry G.
Speaker 2 (22:44):
Faller.
Speaker 4 (22:47):
Hey, welcome back. Hey, I love questions. We got some
great questions about small businesses and opening businesses up. First
one that I do want to answer is from Francis. Hey, Francis,
thanks for the question. Is it better to have a
small business or just run taxes on our tax form.
So I'm going to fill in the blank here. Is
it better to have a business that files taxes on
(23:10):
its own tax form or just run them on our
tax form. Now, everybody's business is different, so you know,
I'd like to tell people a lot of times that
I want to keep the trash off your personal tax return.
And sometimes that is one hundred percent worth it, depending
on the business that you're running and how much business
(23:33):
you're doing. I mean, if you're doing a small business
that you know, maybe you only make ten twenty thirty
thousand dollars gross revenues, you know, it probably doesn't matter
whether you run it on your personal tax return on
schedule see or if you were to run it as
a S corp or multi member partnership. That's out there.
(23:57):
But if you've got you know, maybe a husband and wife,
you can either do ATUALC or you can do multi
member partnership. It gives you some options. Otherwise you're a
escort or you're a C corp which files on eleven twenty.
But a lot of times I tell people, hey, we
want to get the trash off there, meaning there's too
much detail, there's too many things that can get confusing
(24:20):
when somebody runs a business, and it's better to keep
things completely separate. It's also easier if you did go
through an audit to have your business and personal completely separate.
What we tell everybody you know, first and foremost is
making sure that you have a completely separate checking account
(24:40):
for your business versus your personal and don't commingle, meaning
you're not running personal expenses through your business account and
you're not running business expenses through your personal account. So
you know, both ways. It's got to work, but added complications,
(25:02):
So it just depends on how much complications you want.
If your net income isn't very high in your business,
then it makes no difference and actually better to be
on Schedule C for you because you're not having to
spend the money to do payroll as a es CORP
and an escorp tax return that adds quite a bit
(25:24):
of expenses to your business and makes your bottom line
much smaller, ma'am. That being said, if your income is
very very strong, you know, and let's say we're going
to just use some easy round numbers, you're going to
net income one hundred thousand dollars. That net income on
a Schedule C is completely subject to self employment tax.
(25:48):
So that self employment tax is fifteen thousand, three hundred
sumidd dollars for social security and medicare. You get to
pay both sides, ma'am. As an escort. You have to
have a reasonable salary as a business owner working in there.
So depending on what your reasonable salary can be, and
we're just going to say, let's say it could be
(26:09):
fifty thousand, somebody you would pay somebody else to do
this job for you and work in your business for
fifty thousand dollars, means you could have your salary at
fifty thousand. That salary would be subject to payroll taxes.
So security and medicare same as self employment and differences.
(26:29):
The company pays half, you pay half, you're the business owner.
You're paying both halfs anyway, regardless whether it's self employment
or it's through payroll, it's just listed differently and it's
on tax forms and on W two. So you will
pay basically that seven six hundred and fifty dollars in
(26:50):
payroll taxes a self employment taxes. But on the other side,
the other fifty thousand you're not going to pay self
employment taxes on. So basically it saves you seven six
hundred and fifty dollars, but you've got to subtract out
of that the expense of having payroll and the expense
(27:11):
of having another tax return done, and corporate returns are
not the chiefest returns out there, so you got to
factor all that in. So, yes, at that point, there
is more savings for you, and it becomes worthwhile. And
you get somewhere in that borderline at seventy five thousand
or under sixty thousand and under that, hey, you're probably
(27:34):
at a break even, meaning you're saving money, but the
money you're saving is pretty much going to be going
to get the taxes in payroll. So is it really
worth it at that point? Who you pay to get
it done? That becomes debatable. How many hoops you want
to tell them through. So you know, those are the
kind of things that you know, we definitely look at
(27:59):
for you and you know, help make a decision on
you know, whether this is possible or whether or not
you should be filing or filing on schedule. See, it's
something you got to sit down and talk to your
tax prepayer with through some tax planning. You know what's
going to work best for me? You know, do I
(28:22):
want to file with my business on my return or
do I want to file it separately? You know, that
becomes the biggest question. So you know you're now sitting
here and deciding, you know, what do I want to
do in business? How do I want to look at
my tax strategy behind my business? So some of these
(28:46):
things you might need to to look at. And when
you're starting up your business, you know, you kind of
go through, you know, ten different steps to start a business,
and I like what you know the SPA does and
they put out there like there are ten steps out
there where you sit down and you first start out
(29:07):
conducting market research and writing a business plan and then
figuring out how you're going to fund your business. And
then same time you're picking location. Now, remember people talk
about location, location, location, It becomes very important depending on
the type of business you are. Now, if you're a
virtual business, it doesn't matter, but if you've got to
(29:30):
have a storefront, a shop where people come into either
to pick things up or work with you, your location
is extremely important. And as Francis said, you're talking about taxes,
but we also relate that to business structure. You're going
to be an LLC. Are you going to be an escort?
Are you going to be an inc? Are you going
(29:51):
to be a C corp? Or you're just going to
be a sole proprietor DBA. You know, you have all
those different options, but you've got to sit out and
make a decision on those options. Greg asked about choosing
your business name and how important is it. Well, choosing
a business name can be extremely important. It's one of
(30:14):
the ten steps that SBA puts out there because it's
sometimes it's not easy to pick the perfect name. You
want one that reflects your brand, captures the spirit of
your organization and what your organization does, and you've got
to make sure it's not being used as well. Hey,
we've got a couple other quick questions that came in
(30:34):
from Casey. What if your business is only making about
thirty five thousand and you can't afford to take a
salary other than about three thousand that year to do
business costs well, Casey, you know when we look at that,
you're only netting thirty five thousand having it as a
schedule CEE, you're going to pay fifteen point three percent
(30:56):
on that for social security and medicare so You're business
is actually netting less than that out there, so you
know you're going to have roughly uh, you know, that's
four thousand, five thousand dollars in self employment taxes. Part
of that's deductible on your taxes as well, but uh,
(31:20):
your net income. You know, you're not going to want
to be an es corp uh and take a salary
because you're just not going to have the cash flow
to be able to do that or the net income
strong enough to be a reason to jump over to
be an escort. Now, if you could be a partner,
you could have a partnership and we can do different
(31:40):
things with guaranteed payments and not have to be a salary.
But basically guaranteed payments is your reasonable wages, but you
can manipulate that to where you're at. James asked, what's
the different definition of a virtual business? Virtual business basically
has no location. Maybe you're running it out of your home,
(32:05):
your apartment, so you're basically doing everything remote. You're doing
everything virtually. You know, maybe you're running a website and
that's your only location and you sell products out of there,
even though you're maintaining inventory at your house. But it's
(32:26):
not someplace everybody comes to pick up merchandise or gets
services from you. So your business is completely virtual, completely online,
so you're not running a store front, so there's no
brick and mortar walls. We had a client a few
(32:46):
years ago that came to us for taxes and tax
out and his question to my staff was, you know,
are you a brick and mortar place? And she was, well,
I think there's some brick, but I'm not really sure.
So it's kind of joke. Client's been a client of
(33:08):
ours for over twenty plus years. Great client, and so
we always laugh about that. You know, using somebody that's
virtual sometimes is hard, especially sometimes in the tax business,
but has become more of the norm. Yes, we have
building here that we run our corporate headquarters out of.
(33:31):
Some of the stuff we do is virtual in different
locations because we don't need a storefront in every location
that we work in or all around the country. We
just need a facility that we can deal with the
I R S when's needed. But as far as our
clients go, we do everything via phone, via zoom, via ring,
(33:55):
via text, via phone, you know, whatever we're doing, it's
mostly virtual. Secure portals and everything else like that. So
you know, we make business is simple and easy for
people out there. But virtual can be part virtual, part
brick and mortar. You know, it depends on the type
(34:17):
of business that you're out there. Hey, we've got to
take a quick break. We're going to go through some
more of the steps of starting a business that the
SBA has. I'll even give you the SBA website. We
come back right after this.
Speaker 3 (34:30):
We have only scratched the surface of today's show. Please
stand by as Barry Cheef Fowler will be right back with.
Speaker 2 (34:38):
Tax Talk for you. As an owner operator.
Speaker 3 (34:43):
You already spend too much time away from your family.
Stop spending time doing paperwork. Go to Trucker tax tools
dot com, a solution built specifically for truckers. Trucker tax
tools dot Com makes your life run smoothly. Let's get
back to tax Talk for you with more tax talk
(35:05):
once again.
Speaker 2 (35:06):
Here's your host, Barry G. Fallum.
Speaker 4 (35:11):
Hey, welcome back. You know we talked about government shutdown
and who's furloughed and what the IRS is doing now
during the government shutdown. Hey, go find our podcasts where
on iHeart, We're on Spotify, We're on all the national
programs for hosted podcasts. Look us up at tax Talk
(35:33):
for you, or you can just go to tax Talk
the number four the letter you dot com. Again, that's
tax Talk the number four letter you dot com. And
you can follow us over there and you can see
all of our podcasts that we've had, and you can
(35:53):
listen to this one again and find out what's happening
in the government. Or you can even listen to the
part of Hey, starting your own business and the ten
steps the SBA is talking about. Now you can find
these ten steps as well at SBA dot gov Business Guide,
and it's got your ten steps out there, such as
(36:16):
conducting market research, riding your business plan, funding your business,
picking your business location, remember location, location, location, choose a
business structure and your business name. And after you've done that,
now you've got to register your business. So you can
register your business either with the Secretary of State's office
(36:38):
or your local Assume Name Division of your county if
you're just going to go with the DBA. And then
once you register your business, you've decided, Hey, I'm going
to be an LLC, I'm going to be a INC.
I'm going to be s court, whatever it's going to
be a partnership. You've got to get your federal and
(37:01):
state tax ID numbers. Now, good news is IRS may
be shut down, but as far as their website still works,
you should still be able to get your Federal Employer
Identification number by filing the SS four online. Now, if
you fill it out manually and fax it in, I
(37:21):
don't think anybody's working in that division of the IRS.
It is not a critical meet. So you, as far
as an individual goes or business goes, getting your Federal
Employer Identification number, do file online. And then once you've
got all that, you can apply for your licenses and permits.
(37:42):
And once you've got your employer identification number, you can
open up your business bank account. That was the ten
steps the SBA has for opening up your business and
starting a business.
Speaker 2 (37:55):
Hey, you got a.
Speaker 4 (37:56):
Question here from Kevin. What can you tell us about
a DBA DBA doing business as it's you getting an
assumed name for you as a sole proprietor. So Kevin's
Plumbing Services, you went out and got an assume name
(38:16):
to put that in there, or whatever your business may be.
Now that files on Schedule C gives you no liability
protections or anything else out there. Now, I'm not wanting
to talk about liability protections because I'm not an attorney,
never wanted to be an attorney. No charge legal fees. Yes,
I say that quite a bit because we want to
(38:37):
make sure that, Hey, we're protected. We're not lawyers, were
old agents. We know more about taxes than anybody else
in the world. So if you need questions about taxes,
we can help you liability attorney. But you know that
DBA files on Schedule CE. It's not going to change
any other way. If you do decide you're going to
form into a partnership either via LLC or Inc. Or Kevin.
(39:03):
You're partnering with Casey Kevin and Casey Plumbing. You now
have a partnership. You may file partnership papers as well.
You could be a limited partnership. You can just be
a general partnership and something a general partnership. You can
file through your local Assumed Name department there in your county.
(39:25):
But hey doesn't give you very many options. Now, if
you're an LLC LLC limited liability company can file either
as a schedule CE sole proprietor single member owner, or
it can file as an escort, or you could take
on a partner and file a partnership return, So you
(39:47):
have various options if you file, become an LLC right
up front. And I do recommend to a lot of
people that, hey, if you're going to get into business
and you think you're going to be successful, now, hey,
remember back into this SBA thing. We were talking about
writing your business plan. Well, that's planning for the future.
(40:09):
What is your business going to do in the future.
What kind of money are you planning to making. Well,
once you've got that plan in place, it helps you
to decide what type of entity you want to be.
And if you're going into business, you're planning to be successful.
You're not planning to lose money. Now, I do have
some people who seem to be failures at everything they do,
(40:31):
but I think they fail on purpose that they think
it's better to have a tax right off. So do
you think it's better to fail at a business to
get the tax right off or to pay the tax?
It's a good question. Now, we don't like paying taxes
in any way, shape or form. But if you were
to lose let's say ten thousand dollars and you're in
(40:51):
a twenty five percent tax bracket. Guess what, you only
save twenty five hundred dollars, you still lost seventy five
hundred dollars. So did it really do you that much
good to lose money in a business just to lose money? Now,
don't enter business unless you plan on being successful. Don't
go into business to lose money and get the right off.
(41:12):
You know, some people enter real estate and get rental
homes because they can get larger depreciation right offs. They're
into the real estate our portion of business, and they're
getting the excess write offs when they sell the property
that hopefully they're going to be in a better situation,
and then they'll have more tax because the basis of
(41:34):
the property has been depleted. But that being the case,
they could enter into a ten thirty one exchange, they
could do various other things to mitigate those taxes to
save themselves money on their investment in what they're able
to do. So there are different investment vehicles, there are
(41:55):
different ways of doing this. But I don't tell you
to enter a business unless you plan, and you have
a written plan. Plan to be one hundred percent successful
in your business. Making money, not losing money is Losing
money never benefits you in any way, shape or form,
no matter what you think, no matter what people tell you. Your
(42:18):
job is to produce income, pay more taxes, or find
ways to invest and do other things in taxes. That's
going to save you money. Boy, time flies when you're
having fun and answering questions and you're talking to people
that you find ways to help. And that's what we
do here at tax Talk for you. Hey, if you're
(42:40):
going to be in the trucking business, hey call Trucker
tax Tools. Go to truckertax tools dot com. Look at
the plans we've got bookkeeping taxes for you as truckers
and small business owner operators. Taxation Solutions dot net saves
people from the IRS and the money that they claim you. Oh,
(43:03):
even if the I R S is wrong, you've got
to fight the I R s to prove that you
were right. And sometimes you need somebody on your side. Now,
we don't take everybody. Not everybody's going to become a
client of Taxation Solutions. We sit down and do it analysis.
We'll tell you will our services benefit you, And here's why.
If our services aren't going to be a big enough benefit,
(43:25):
we're not going to take you on as a client
to take your money. We're going to give you advice
on what you need to do. Give us a call.
If you're in debt with the I R S and
the IRS is claiming you you owe them money, call
us at eight eight eight nine three zero one zero
one six Again eight eight eight nine three zero one
(43:46):
zero one six. Let us step in front, let us
solve the problem. Hey. Every week we're here at tax
Talk for you, bringing you news, bringing you information, helping
you to stay a breast the new tax law, new
things that are going on and help you fight the fight,
the good fight to save yourself from paying more in
(44:08):
taxes than you need to from finding ways to reduce
your taxes to the lowest amount allowed by law, finding
and answering your questions to get you the best solution,
whether it's taxes, tax problems, bookkeeping, uh, you name it,
tax planning. We're here to do that. So tune in
(44:31):
every Monday, ten am Eastern Time, right here at tax
Talk the number four letter you dot com again, tax
Talk for you dot com Mondays ten am on W
four c UY Radio, W four c r Y dot com.
Tune in, don't miss a show. But above all have
(44:51):
a God blessed, glorious. We enjoy the beautiful times that
we have, not just in this country, but are God
provided such great country. Let us live in here, let
us enjoy it, let us be happy. God bless you.
We'll see you next week ten am Monday, right here
at tax Talk for You dot com ten am Eastern Time.
(45:14):
We'll see you next week.
Speaker 3 (45:16):
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 relief?
(45:37):
Then you need Tax Talk for You, hosted by tax
and trucker expert Barry g. Fouer Ea Tunyan 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.
Speaker 2 (45:57):
See you next week at W four Cynight dot com.
MHM
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