June 1, 2026

TAX TALK 4 U IRS Debt now what?

TAX TALK 4 U IRS Debt now what?
iHeartRadio podcast player iconSpotify podcast player iconAmazon Music podcast player iconApple Podcasts podcast player iconAudible podcast player iconPandora podcast player iconDeezer podcast player iconPodchaser podcast player iconSpreaker podcast player iconPodcast Addict podcast player iconJioSaavn podcast player iconCastbox podcast player iconYoutube Music podcast player iconYouTube podcast player iconCastamatic podcast player iconOvercast podcast player iconCastro podcast player iconFountain podcast player iconGoodpods podcast player iconPocketCasts podcast player iconPodurama podcast player iconPodverse podcast player iconPodyssey podcast player iconRSS Feed podcast player icon
iHeartRadio podcast player iconSpotify podcast player iconAmazon Music podcast player iconApple Podcasts podcast player iconAudible podcast player iconPandora podcast player iconDeezer podcast player iconPodchaser podcast player iconSpreaker podcast player iconPodcast Addict podcast player iconJioSaavn podcast player iconCastbox podcast player iconYoutube Music podcast player iconYouTube podcast player iconCastamatic podcast player iconOvercast podcast player iconCastro podcast player iconFountain podcast player iconGoodpods podcast player iconPocketCasts podcast player iconPodurama podcast player iconPodverse podcast player iconPodyssey podcast player iconRSS Feed podcast player icon
Season 4

Tax Talk 4 U When you owe the IRS, the debt and the IRS collection process, create burdens on the family. How you should handle the IRS when they are pursuing collections. IRS letters and notices CP 14, CP501, CP503, CP504, CP523, CP2000, CP90. Collection Due Process Hearing (CDP) how to appeal IRS collection actions. Collection Appeals program. Federal Tax Lein, Federal Tax Levy, Wage Garnishment, Income Levy, Passport Actions IRA may Revoke passports.

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.

WEBVTT

1
00:00:00.120 --> 00:00:02.359
The topics and opinions express in the following show are

2
00:00:02.399 --> 00:00:04.000
solely those of the hosts and their guests, and not

3
00:00:04.040 --> 00:00:06.960
those of W FOURCY Radio. It's employees are affiliates. We

4
00:00:07.000 --> 00:00:10.080
make no recommendations or endorsements for radio show programs, services,

5
00:00:10.160 --> 00:00:12.480
or products mentioned on air or on our web. No

6
00:00:12.599 --> 00:00:15.759
liability explicitor implies shall be extended to W FOURCY Radio

7
00:00:15.839 --> 00:00:18.559
or its employees are affiliates. Any questions or comments should

8
00:00:18.559 --> 00:00:20.920
be directed to those show hosts. Thank you for choosing

9
00:00:21.039 --> 00:00:23.679
W FOURCY Radio.

10
00:00:28.000 --> 00:00:28.359
Barry G.

11
00:00:28.559 --> 00:00:31.640
Fouler EA brings you tax talk for you right here

12
00:00:31.640 --> 00:00:35.200
on W four CY Radio and talk for TV. As

13
00:00:35.240 --> 00:00:39.039
an enrolled agent and a national leader in tax resolution

14
00:00:39.640 --> 00:00:43.560
as well as Trucker bookkeeping and tax planning. With over

15
00:00:43.799 --> 00:00:49.240
thirty years of experience, Barry will break down taxes, bookkeeping,

16
00:00:49.719 --> 00:00:52.240
tax planning, and tax relief.

17
00:00:51.920 --> 00:00:55.560
For individuals and businesses just like you. So let's have

18
00:00:55.719 --> 00:00:59.479
some tax talk for you with your host, Barry G.

19
00:00:59.719 --> 00:01:00.240
Foul Learn.

20
00:01:02.840 --> 00:01:07.319
Hey, welcome in good Monday morning. It's a way to

21
00:01:07.400 --> 00:01:12.680
start your morning talking about nothing better than taxes. Maybe

22
00:01:12.680 --> 00:01:17.640
worse than that is irs debt. I mean, you know,

23
00:01:17.640 --> 00:01:19.760
if you've got to start your Monday off talking about

24
00:01:19.799 --> 00:01:23.439
IRS debt. You need help, So I guess I need

25
00:01:23.480 --> 00:01:26.159
help because this is what we're going to talk about today.

26
00:01:26.319 --> 00:01:29.480
And now I've got some questions that people have asked

27
00:01:29.519 --> 00:01:32.519
from previous shows that we want to answer, and we'll

28
00:01:32.519 --> 00:01:36.079
do that probably the last segment and stuff. But you know,

29
00:01:36.079 --> 00:01:40.480
what do you do when you owe the IRS ten

30
00:01:40.959 --> 00:01:43.719
twenty thousand, I mean even five hundred dollars? You know,

31
00:01:44.120 --> 00:01:47.480
people are in a panic of what can the IRS

32
00:01:47.519 --> 00:01:49.680
do to me? And then you know, what should I

33
00:01:49.760 --> 00:01:54.760
do to solve this problem? You know, and the solutions

34
00:01:54.760 --> 00:01:57.239
can run the gambit. I mean, you've heard the commercials

35
00:01:57.239 --> 00:02:01.319
on the radio stations and everything else across the country, TV,

36
00:02:01.560 --> 00:02:05.280
you name it. They're out there, you know, soliciting you

37
00:02:05.920 --> 00:02:08.879
as a person that owes you know, ten thousand dollars

38
00:02:09.000 --> 00:02:12.719
or more to get you help against the I R S.

39
00:02:13.560 --> 00:02:16.599
And you know, when you owe it, you know you're

40
00:02:16.639 --> 00:02:21.319
in a panic because you're receiving those nasty letters at

41
00:02:21.319 --> 00:02:24.039
the I R S sens. And you know, one of

42
00:02:24.039 --> 00:02:26.000
our previous shows, you can go listen to one of

43
00:02:26.039 --> 00:02:28.159
the podcasts, we went through all the different letters the

44
00:02:28.159 --> 00:02:30.840
I RS sins. But you know when they get to

45
00:02:31.479 --> 00:02:34.360
that final notice of intent to levy and you get

46
00:02:34.360 --> 00:02:37.520
a certified letter, you know most people are in pure

47
00:02:38.240 --> 00:02:44.240
panning motion stage of the collections. What do I do? Now?

48
00:02:44.639 --> 00:02:47.080
We shouldn't let it get that far. You got to

49
00:02:47.120 --> 00:02:50.639
find the solution. But if you are that far, that's

50
00:02:50.680 --> 00:02:54.919
when you need to get a solution definitely in place,

51
00:02:55.000 --> 00:02:57.599
whether it's a do it yourself or and you call

52
00:02:57.680 --> 00:03:00.879
the I R S and they take everything to have

53
00:03:01.159 --> 00:03:05.759
available to pay them and put you on the biggest

54
00:03:05.759 --> 00:03:09.599
payment plan that they think you can afford. You know,

55
00:03:09.840 --> 00:03:13.680
but at least it stops then collections until your default,

56
00:03:13.919 --> 00:03:16.199
and then your default and then everything gets back to

57
00:03:16.240 --> 00:03:19.240
the same way and becomes nasty again. So you know,

58
00:03:19.560 --> 00:03:23.879
what are your options when you owe the I R S.

59
00:03:24.560 --> 00:03:27.599
It's like I said, runs the gambit. You know, the

60
00:03:27.639 --> 00:03:32.120
first option is going to be an IRS installment agreement

61
00:03:32.319 --> 00:03:35.520
payment plan. Now, you know, you've got to make sure

62
00:03:35.599 --> 00:03:38.360
before you do anything with the I r S, and

63
00:03:38.400 --> 00:03:40.560
the I r S will go through compliance with you

64
00:03:40.639 --> 00:03:45.639
as well. You've got to have filed all missing federal

65
00:03:45.840 --> 00:03:48.599
tax returns, even if you can't afford to pay the

66
00:03:48.639 --> 00:03:51.479
balance immediately before those set you up with an installment

67
00:03:51.479 --> 00:03:54.639
agreement or do anything else with you besides take your

68
00:03:54.639 --> 00:04:00.639
money and through leans and levees, wage garnishments. You've got

69
00:04:00.639 --> 00:04:05.599
to be one hundred percent in compliance with your federal filings.

70
00:04:05.680 --> 00:04:07.439
They could care less about your state. I mean, this

71
00:04:07.479 --> 00:04:10.599
is federal government. If you haven't filed your state return,

72
00:04:10.719 --> 00:04:16.079
the state's coming after you. But you know we're talking federally. Now,

73
00:04:16.160 --> 00:04:20.800
if you are in compliance for filing, then you now

74
00:04:20.920 --> 00:04:25.439
have options. And you know, the first one everybody looks to,

75
00:04:26.000 --> 00:04:31.160
or the IRS looks to, is payment plans. Now you

76
00:04:31.199 --> 00:04:36.720
can run multiple different types of payment plans with the IRS.

77
00:04:37.199 --> 00:04:40.399
You know, they do give you the ability to maybe

78
00:04:40.480 --> 00:04:44.519
do a short term payment plan to give you one

79
00:04:44.600 --> 00:04:47.759
hundred and eighty days to pay the full balance and

80
00:04:47.879 --> 00:04:53.279
six months. So that's available if you're combined federal tax

81
00:04:53.680 --> 00:04:57.879
penalties and interests total less than one hundred thousand dollars. Now,

82
00:04:57.879 --> 00:04:59.519
can you come up with one hundred thousand dollars and

83
00:04:59.560 --> 00:05:03.839
about six months? If not, then you've got to maybe

84
00:05:03.879 --> 00:05:09.079
look at other things. If maybe this plan could be

85
00:05:09.279 --> 00:05:12.920
available to you, Maybe you're going to go after a loan,

86
00:05:13.519 --> 00:05:15.399
so you're going to go after a home equity loan

87
00:05:15.439 --> 00:05:19.000
to pay off your debt. Hey, this short term payment

88
00:05:19.040 --> 00:05:24.519
plan buys you the time to make those arrangements. That's

89
00:05:24.560 --> 00:05:28.240
all it does, is it's buying you the time to

90
00:05:28.399 --> 00:05:32.360
make those arrangements to pay that full balance off. So

91
00:05:33.040 --> 00:05:35.600
if you owe one hundred thousand dollars or less, you

92
00:05:35.639 --> 00:05:37.759
can get into this short term one hundred and eighty

93
00:05:37.839 --> 00:05:44.079
days full pay installment agreement with the IRS. So not

94
00:05:44.199 --> 00:05:47.680
a bad plan if you're going after loan or maybe

95
00:05:48.079 --> 00:05:50.519
you know you're trying to pull some investments out or

96
00:05:50.519 --> 00:05:53.920
something like that that you're going to pay off and

97
00:05:54.360 --> 00:05:58.360
you need or want more time to pay the IRS. Now,

98
00:05:58.759 --> 00:06:02.480
they will also give you a long term plan if

99
00:06:02.480 --> 00:06:05.879
you want it. This allows monthly payments for up to

100
00:06:06.600 --> 00:06:11.680
seventy two months six full years. Now, this is available

101
00:06:12.199 --> 00:06:15.079
if you owe less than fifty thousand in combined tax,

102
00:06:15.319 --> 00:06:19.399
penalties and interest. Now, this is the only reason they

103
00:06:19.399 --> 00:06:23.639
say it's available is because it is automatic if you

104
00:06:23.720 --> 00:06:28.160
owe fifty thousand dollars or less. Now, if you are

105
00:06:28.240 --> 00:06:32.240
owing more than fifty thousand, then you're going to have

106
00:06:32.360 --> 00:06:36.240
to provide financials, which is through a four to thirty

107
00:06:36.279 --> 00:06:40.439
three a ER personal and if you run a business

108
00:06:40.519 --> 00:06:43.360
as well, or you have a side business, or you

109
00:06:43.439 --> 00:06:48.480
file Schedule C, maybe you have an LLC or an escort.

110
00:06:49.920 --> 00:06:53.319
You know, they may want the business financials as well,

111
00:06:53.360 --> 00:06:55.160
and that would be on A four to thirty three

112
00:06:55.399 --> 00:06:58.079
B and you would have to provide both the A

113
00:06:58.279 --> 00:07:01.600
and B if you're running a business, and then they

114
00:07:01.600 --> 00:07:05.120
could give you up to seventy two months. Sometimes I've

115
00:07:05.120 --> 00:07:07.920
seen them go out as far as eighty four months,

116
00:07:08.279 --> 00:07:13.560
but the typical norm is seventy two unless you are

117
00:07:13.639 --> 00:07:17.600
running up against statue of limitations. So if your statute

118
00:07:17.600 --> 00:07:22.800
of limitations is only sixty months on your oldest debt

119
00:07:22.920 --> 00:07:26.040
or forty eight months, then they're going to put it

120
00:07:26.079 --> 00:07:31.040
on a lower payment arrangement, so you would have to

121
00:07:31.079 --> 00:07:34.680
pay it off in the statue of limitations. It can

122
00:07:34.720 --> 00:07:38.360
get complicated when you start dealing with the IRS and

123
00:07:38.439 --> 00:07:40.720
you say, hey, you know, I was listening to tax

124
00:07:40.800 --> 00:07:43.720
talk for you, and they said we had seventy two months,

125
00:07:44.160 --> 00:07:47.120
not one hundred percent, correct in seventy two. If your

126
00:07:47.120 --> 00:07:50.759
statue of limitations is going to lower the number of

127
00:07:50.879 --> 00:07:55.319
months the IRS has to collect the debt. Now, statute

128
00:07:55.319 --> 00:07:59.120
of limitations is ten years from when it's filed, then accepted,

129
00:07:59.639 --> 00:08:04.000
and then they can add time for pauses in the

130
00:08:04.040 --> 00:08:08.319
statute of limitations from running such as filing for a

131
00:08:08.399 --> 00:08:12.879
CDP hearing, filing for a couple of other statuses that

132
00:08:13.040 --> 00:08:16.519
we'll be discussing here coming up that can and do

133
00:08:17.399 --> 00:08:22.120
pauses of statute of limitations. So some things to consider

134
00:08:22.439 --> 00:08:26.240
is pauses are not necessarily a good thing if you're

135
00:08:26.279 --> 00:08:28.839
trying to get the statutes to run out on tax

136
00:08:28.920 --> 00:08:32.360
debt before you full pay or before you have to

137
00:08:32.399 --> 00:08:37.480
pay all the money to the IRS. Now, one of

138
00:08:37.480 --> 00:08:42.159
the things with any installment agreement is penalties and interest

139
00:08:42.360 --> 00:08:47.039
continue to accrue on the remaining balance of your debt

140
00:08:47.279 --> 00:08:50.399
until you pay it off in full. But entering a

141
00:08:50.440 --> 00:08:53.799
payment plan cuts the failure to pay penalty rate in half.

142
00:08:53.879 --> 00:08:59.320
So there are some things that help you save money

143
00:08:59.399 --> 00:09:03.120
by getting yourself into a payment plan, whether it's a

144
00:09:03.159 --> 00:09:06.159
short term one, long term one. And you know, if

145
00:09:06.480 --> 00:09:10.000
you've got the wherewithal the pay you're fifty dollars fifty

146
00:09:10.039 --> 00:09:14.840
thousand dollars in tax debt. IRS even offers an online

147
00:09:14.960 --> 00:09:17.759
payment tool that you could go through it do. Now,

148
00:09:17.759 --> 00:09:19.559
you've got to understand it's going to be the maximum

149
00:09:19.639 --> 00:09:22.440
payment that they want is what it's going to calculate,

150
00:09:22.840 --> 00:09:25.720
not going to give you any discounts. It's not going

151
00:09:25.759 --> 00:09:29.039
to lower it because you're in financial hardship. It's not

152
00:09:29.120 --> 00:09:33.840
going to lower it because your ability to pay is

153
00:09:33.960 --> 00:09:37.720
less than what they're seeing your ability to pay because

154
00:09:37.799 --> 00:09:39.799
when you go through and do the payment tool, it

155
00:09:39.840 --> 00:09:43.480
doesn't look at anything other than what you owe and

156
00:09:43.519 --> 00:09:45.879
how you're going to best pay. You know, it's kind

157
00:09:45.879 --> 00:09:49.639
of their whole technique is to get as much money

158
00:09:49.720 --> 00:09:55.720
in to the IERS Department of Revenue as possible. So

159
00:09:55.960 --> 00:09:58.600
they offer that payment tool, Hey, go do it. If

160
00:09:58.639 --> 00:10:01.799
you want to pay the max. You know that sometimes

161
00:10:02.200 --> 00:10:04.799
is what you've got to do and maybe the way

162
00:10:04.879 --> 00:10:08.159
you need to go. But it's going to impact you

163
00:10:08.240 --> 00:10:13.000
because it is going to be maybe a higher installment

164
00:10:13.120 --> 00:10:17.879
arrangement than you can actually afford it to do. So

165
00:10:18.320 --> 00:10:20.519
you know, it's kind of one of those things that

166
00:10:20.879 --> 00:10:26.440
you need to be looking at to determine, Hey is

167
00:10:26.559 --> 00:10:31.440
this right for me? So you know, you have other

168
00:10:31.519 --> 00:10:34.440
things you can be doing to solve this debt, and

169
00:10:34.679 --> 00:10:37.720
one of them, and I really like this, especially if

170
00:10:37.759 --> 00:10:41.360
you're running up against statute limitations, is the partial pay

171
00:10:41.480 --> 00:10:44.480
installment agreement. We're going to go at through that right

172
00:10:44.519 --> 00:10:45.519
after this quick break.

173
00:10:47.399 --> 00:10:51.039
We have only scratched the surface of today's show. Please

174
00:10:51.080 --> 00:10:54.320
stand by as Parry G. Pauer will be right back

175
00:10:54.440 --> 00:10:59.600
with tax talk for you. If you own the I

176
00:10:59.799 --> 00:11:03.399
R or are going through an IRS audit, don't go

177
00:11:03.519 --> 00:11:04.159
at it alone.

178
00:11:04.480 --> 00:11:07.080
Call Taxation Solutions Tax.

179
00:11:06.720 --> 00:11:10.480
Relief at eight eight eight nine three zero one zero

180
00:11:10.639 --> 00:11:15.639
one six. We are your solution for IRS debts, audits,

181
00:11:16.039 --> 00:11:21.480
back taxes, garnishments, leans and levees. Whether you're an individual

182
00:11:21.559 --> 00:11:25.799
or business, you need a solution and a strong aggressive

183
00:11:25.960 --> 00:11:26.919
tax resolution.

184
00:11:27.759 --> 00:11:29.879
Don't let the IRS walk all over you.

185
00:11:30.159 --> 00:11:34.039
Stop the IRS now call eight eight eight nine three

186
00:11:34.120 --> 00:11:38.960
zero one zero one six or go to Taxationsolutions dot

187
00:11:39.080 --> 00:11:47.559
net now for a free no obligation consultation. Let's get

188
00:11:47.600 --> 00:11:50.600
back to tax stock for you with more tax stock

189
00:11:51.159 --> 00:11:54.159
once again. Here's your host, Barry G.

190
00:11:54.440 --> 00:11:54.799
Fowler.

191
00:11:57.159 --> 00:11:59.639
Hey, welcome back. You know we were talking about tax

192
00:11:59.720 --> 00:12:03.320
debt and what do you do? And you oh that

193
00:12:03.600 --> 00:12:07.799
dreaded I are as. I mean it's almost like you

194
00:12:07.840 --> 00:12:10.360
know those handcuffs, you know, and now they have your

195
00:12:10.399 --> 00:12:14.759
invisible handcuffs and you can't do anything. And man, the

196
00:12:14.799 --> 00:12:19.639
pressure that it puts on you, your spouse, your significant other,

197
00:12:19.840 --> 00:12:23.320
your family as a whole because you stress them. You know,

198
00:12:23.360 --> 00:12:25.759
are they going to take everything? Are they going to

199
00:12:25.840 --> 00:12:27.799
levy my bank account again? Are they going to garnish

200
00:12:27.799 --> 00:12:30.720
my wages, They're going to garnish my social security? They're

201
00:12:30.720 --> 00:12:33.240
gonna put a lean on my house, They're gonna levy

202
00:12:34.360 --> 00:12:36.759
take my house. You know, all those things that the

203
00:12:36.799 --> 00:12:40.600
pressure of owing the I R S and so, you know,

204
00:12:40.679 --> 00:12:44.519
you go through dealing with this in life, and you

205
00:12:44.559 --> 00:12:47.960
know you've got to figure out a way out, you know,

206
00:12:48.120 --> 00:12:52.320
to unbury yourself from this debt, you know, and and

207
00:12:52.399 --> 00:12:55.039
those payment plans you know you can do it, but

208
00:12:55.679 --> 00:12:58.360
you know, again if you can afford it. If you

209
00:12:58.399 --> 00:13:00.639
can't afford it, then maybe you've got to look at

210
00:13:00.679 --> 00:13:03.799
other ways of going about it. And one of the

211
00:13:04.080 --> 00:13:07.759
other options in installment agreements is what we call partial

212
00:13:07.799 --> 00:13:12.320
pay installment agreement. It's where we get the IRS to

213
00:13:12.759 --> 00:13:19.639
approve making lower payments to the IRS that doesn't pay

214
00:13:19.639 --> 00:13:23.559
off all the debt. Now, okay, how's that possible? Well,

215
00:13:23.919 --> 00:13:26.440
a lot of times you're running upgainst statute of limitations.

216
00:13:26.679 --> 00:13:29.120
So you know, maybe you've got a year or two years,

217
00:13:29.120 --> 00:13:32.080
and some of your tax debt maybe you've got them

218
00:13:32.120 --> 00:13:35.240
staggered and it's one year left, two years left, and

219
00:13:35.480 --> 00:13:40.080
three years left, and you can afford to pay only

220
00:13:41.080 --> 00:13:43.519
one hundred dollars or two hundred dollars, whatever the number

221
00:13:43.559 --> 00:13:46.440
happens to be, but it won't pay off the debt

222
00:13:47.000 --> 00:13:49.000
in any of that period of time. Now you have

223
00:13:49.039 --> 00:13:51.879
other debt that's maybe still got nine or ten years

224
00:13:51.960 --> 00:13:54.799
left in the statute of limitations, so you're going to

225
00:13:54.879 --> 00:13:58.039
have a longer payment plan. But if we can prove

226
00:13:58.080 --> 00:14:00.519
to the IRS through the filing of the four thirty

227
00:14:00.559 --> 00:14:03.360
three A and if you have to the four thirty

228
00:14:03.399 --> 00:14:06.840
three B, we can prove to the IRS that hey,

229
00:14:06.879 --> 00:14:10.159
based on these standards and the amounts that you pay,

230
00:14:10.799 --> 00:14:14.759
you cannot afford to pay the full amount. So you

231
00:14:14.799 --> 00:14:18.399
may pay one hundred dollars a month that would cover

232
00:14:18.759 --> 00:14:22.360
the debts, but part of your debts may be falling

233
00:14:22.399 --> 00:14:25.679
off in that one, two and three year period, and

234
00:14:26.039 --> 00:14:29.799
you could save you ten, twenty, thirty, forty thousand dollars

235
00:14:29.799 --> 00:14:32.399
depending on what you owe each of those years, and

236
00:14:33.279 --> 00:14:37.879
it puts savings in your pocket without having to go

237
00:14:37.960 --> 00:14:42.519
through this long drawn out period of trying to file

238
00:14:42.600 --> 00:14:46.240
maybe an offer and compromise, but also it gives you

239
00:14:46.279 --> 00:14:50.240
the ability to prove too that you can't access maybe

240
00:14:50.240 --> 00:14:53.120
the equity in your house right now, maybe your credit's

241
00:14:53.159 --> 00:14:56.799
too bad, maybe you have other issues, maybe you don't

242
00:14:56.840 --> 00:15:00.159
have jobs right now. There's a lot of different and

243
00:15:00.639 --> 00:15:04.080
options out there, what the reasoning may be, or maybe

244
00:15:04.159 --> 00:15:07.639
only one spouse is working and you know, we want

245
00:15:07.679 --> 00:15:10.639
to get through the statute of limitations versus filing, you know,

246
00:15:10.679 --> 00:15:13.639
for an offering compromise right now. So there's a lot

247
00:15:13.639 --> 00:15:16.639
of different reasons we can use this tool to be

248
00:15:16.759 --> 00:15:20.919
able to set you up for success maybe in the

249
00:15:21.200 --> 00:15:24.279
in the future, and maybe even sets you up for

250
00:15:24.399 --> 00:15:27.960
success maybe an offering compromise at some point in future,

251
00:15:28.080 --> 00:15:30.279
depending on you know, what we can get the i

252
00:15:30.480 --> 00:15:32.879
RS to agree to, and how much debt you have

253
00:15:33.120 --> 00:15:35.679
and what the statutes are. You know, We've used this

254
00:15:35.840 --> 00:15:39.799
tool for a client who had a lot of debt

255
00:15:39.879 --> 00:15:45.519
falling off over the first two three years of the

256
00:15:45.600 --> 00:15:50.559
partial pay installment agreement, but had very little current debt,

257
00:15:50.799 --> 00:15:53.919
so about seventy five percent of their debt was going

258
00:15:54.000 --> 00:15:58.000
to fall off within this short window and we were

259
00:15:58.080 --> 00:16:00.600
able to work with the I R S drag it

260
00:16:00.639 --> 00:16:02.440
out a little bit where we got one year to

261
00:16:02.759 --> 00:16:06.000
fall off for the statute of limitations, and now we're

262
00:16:06.200 --> 00:16:10.120
getting got them into a partial pay installment agreement where

263
00:16:10.120 --> 00:16:14.440
they pay very little every month and they're going to

264
00:16:14.519 --> 00:16:18.399
see a significant decrease in their debt and then they'll

265
00:16:18.440 --> 00:16:22.159
be left with very small amount of debt that would

266
00:16:22.159 --> 00:16:24.519
be paid off in this payment plan within a year

267
00:16:24.600 --> 00:16:28.360
or two after all the debt falls off. So kind

268
00:16:28.360 --> 00:16:32.440
of a hey, win win. The IRS gets some money

269
00:16:32.480 --> 00:16:38.120
and our client gets the biggest win because they're spending

270
00:16:38.279 --> 00:16:42.039
very little in this partial pay installment agreement and a

271
00:16:42.039 --> 00:16:46.120
lot of the debt is falling off, so it benefits them. Now,

272
00:16:46.279 --> 00:16:50.000
you know, you do have a choice of possibly getting

273
00:16:50.039 --> 00:16:54.519
into non collectible status. That is another option for you.

274
00:16:54.919 --> 00:16:58.320
So you know, if you were to go through the

275
00:16:58.360 --> 00:17:01.879
calculations with US and with the IRS and do the

276
00:17:01.879 --> 00:17:05.039
four thirty three A and possibly the four thirty three B,

277
00:17:05.680 --> 00:17:08.759
and we can prove to the IRS paying your tax

278
00:17:08.839 --> 00:17:13.319
debt leads you unable to cover basic living expenses, then

279
00:17:13.319 --> 00:17:16.920
we can request that the IRS place your account in

280
00:17:17.519 --> 00:17:23.519
CNC currently non collectible status. This isn't permanent. It is

281
00:17:23.599 --> 00:17:31.039
a temporary halt to aggressive collections and aggressive activities going

282
00:17:31.079 --> 00:17:35.119
through like bank levies and wage garnishments, and so will

283
00:17:35.119 --> 00:17:38.839
put a temporary hold on that. Your debt's going to

284
00:17:38.880 --> 00:17:42.240
continue to grow, and it's going to continue to accumulate

285
00:17:42.359 --> 00:17:45.319
penalties and interest, and that's going to compound on your

286
00:17:46.079 --> 00:17:49.279
tax debt daily. The IRS is still going to take

287
00:17:49.359 --> 00:17:54.920
any refunds you get from both federal and state tax

288
00:17:55.000 --> 00:18:00.319
refunds and then apply them directly to your past debt. Normally,

289
00:18:00.440 --> 00:18:03.119
this status is around two years, so you know, if

290
00:18:03.160 --> 00:18:06.359
nothing's changed, it probably would stay that way. But if

291
00:18:06.400 --> 00:18:10.559
your income goes up, the IRS is going to come

292
00:18:10.599 --> 00:18:15.359
back and look at this again with you to confirm

293
00:18:15.480 --> 00:18:18.119
whether or not you can afford to pay. So you know,

294
00:18:18.240 --> 00:18:22.039
generally what we see is after two years, the i

295
00:18:22.240 --> 00:18:24.920
RS does a comparison to your tax return. Your tax

296
00:18:24.960 --> 00:18:30.279
return hasn't changed, and therefore they leave you alone. But

297
00:18:30.400 --> 00:18:32.799
all of a sudden, maybe you start making more money,

298
00:18:33.240 --> 00:18:36.599
you're going to fall possibly out of this non collectible

299
00:18:36.640 --> 00:18:40.400
status and you will have to reapply for the non

300
00:18:40.440 --> 00:18:45.920
collectible status or at that point looking at other solutions

301
00:18:46.400 --> 00:18:48.480
to your problem. But it gave you a couple of

302
00:18:48.599 --> 00:18:52.400
years reprieve. It gave you a couple of years to

303
00:18:52.480 --> 00:18:57.200
reset your life and finances and get yourself back into

304
00:18:57.400 --> 00:19:01.720
better footing to accomplish it. Very rarely are we going

305
00:19:01.799 --> 00:19:04.960
to use non collectible status unless we see statute of

306
00:19:04.960 --> 00:19:07.599
limitations again going to run out within that you know,

307
00:19:07.680 --> 00:19:11.000
two years. Again, We're not going to do it unless

308
00:19:11.519 --> 00:19:13.960
you tell us that nothing is going to change in

309
00:19:14.039 --> 00:19:17.359
your life over the next five years or whatever the

310
00:19:17.400 --> 00:19:20.519
statute of limitations are that's going to take to run out.

311
00:19:21.559 --> 00:19:23.519
If you were to tell me that, hey, you got

312
00:19:23.559 --> 00:19:26.519
a huge job coming up and you're now going to

313
00:19:26.599 --> 00:19:29.319
make you know, one hundred thousand dollars a year or

314
00:19:29.359 --> 00:19:33.079
some big number, you know, we're not going to want

315
00:19:33.079 --> 00:19:36.839
to put you in non collectible status because they will

316
00:19:36.839 --> 00:19:39.599
come back and start full collections on you. We then

317
00:19:39.680 --> 00:19:44.319
would possibly look at the option of uh finding, you know,

318
00:19:44.359 --> 00:19:49.839
maybe offering compromise, maybe a partial pay installment agreement, you know,

319
00:19:49.880 --> 00:19:53.400
something like that, and looking at what can we do

320
00:19:54.200 --> 00:19:59.200
to save you, you know, down the road. So one

321
00:19:59.200 --> 00:20:02.480
of the other items that we look at doing is

322
00:20:02.559 --> 00:20:07.920
penalty abatements, getting rid of those penalties that you have

323
00:20:08.079 --> 00:20:12.920
faced and add considerable amount to your tax debt. But

324
00:20:13.200 --> 00:20:20.960
you've got to have basically legitimate, uncontrollable circumstances like medical emergency,

325
00:20:21.200 --> 00:20:25.680
natural disaster, major disruption, and then we can go in

326
00:20:25.920 --> 00:20:31.519
and request relief. However, we're going to have to provide

327
00:20:31.599 --> 00:20:36.599
documentation to prove that you've made an honest attempt to

328
00:20:36.680 --> 00:20:43.200
comply with the tax laws. But we're physically financially, mentally,

329
00:20:44.720 --> 00:20:51.279
natural disasterly not able to actually file your tax returns

330
00:20:51.559 --> 00:20:56.200
or pay your tax debt, so all those things can

331
00:20:56.759 --> 00:21:02.160
definitely impact what happens and being able to get that

332
00:21:03.079 --> 00:21:06.480
non collectible status so that you're not paying the I

333
00:21:06.680 --> 00:21:11.799
R S any money currently and maybe you know, go

334
00:21:11.880 --> 00:21:15.440
forward from there. So the penalty abatements do work at times,

335
00:21:15.920 --> 00:21:20.240
it depends on the reason the excuse. It's kind of

336
00:21:20.279 --> 00:21:23.920
like going to your teacher and saying, if you go

337
00:21:24.000 --> 00:21:26.200
in and say, the dog ate my homework, well, you

338
00:21:26.240 --> 00:21:28.960
know what, the irs isn't going to believe you, just

339
00:21:29.000 --> 00:21:32.640
as much as your teacher didn't believe you. So don't

340
00:21:32.680 --> 00:21:36.240
go at penalty abatement with an excuse that your dog

341
00:21:36.680 --> 00:21:39.920
ates your tax return or h your money. That just

342
00:21:40.079 --> 00:21:44.920
isn't going to fly. So that being said, what do

343
00:21:45.039 --> 00:21:48.240
we all hear in the radio? The Holy Grail, the

344
00:21:48.400 --> 00:21:53.160
offer compromise. We're going to talk about offers and compromises

345
00:21:53.200 --> 00:21:57.039
and how you can get it. Do you qualify? Right

346
00:21:57.079 --> 00:21:58.400
after the short break.

347
00:22:00.000 --> 00:22:03.839
I've only scratched the surface of today's show. Please stand

348
00:22:03.880 --> 00:22:06.920
by as Barry G. Fowler will be right back with

349
00:22:07.200 --> 00:22:13.680
taxtock for you. As an owner operator, you already spend

350
00:22:13.680 --> 00:22:17.240
too much time away from your family. Trucker Tax Tools

351
00:22:17.279 --> 00:22:20.559
handles all your bookkeeping and taxes no matter what level

352
00:22:20.599 --> 00:22:21.400
trucker you are.

353
00:22:21.640 --> 00:22:24.160
Life on the road can be taxing, but.

354
00:22:24.119 --> 00:22:27.079
That doesn't mean that your wallet or time with your

355
00:22:27.079 --> 00:22:31.920
family should suffer. Trucker Tax Tools makes your life run smoothly.

356
00:22:32.480 --> 00:22:35.079
Go to Trucker tax Tools dot com for a free

357
00:22:35.119 --> 00:22:38.759
guide that will give you the tools to never worry

358
00:22:38.799 --> 00:22:42.799
about your taxes again. Call Trucker Tax Tools eight seven

359
00:22:42.960 --> 00:22:47.519
seven nine sixty six two four seven seven or go

360
00:22:47.599 --> 00:22:50.440
to Trucker tax Tools dot com now and let.

361
00:22:50.400 --> 00:22:52.319
The experts keep you trucking.

362
00:22:55.440 --> 00:22:58.279
Let's get back to tax Stock for you with more

363
00:22:58.440 --> 00:23:00.000
tax stock once again.

364
00:23:00.000 --> 00:23:03.319
Again, here's your host, Parry G. Fallum.

365
00:23:05.640 --> 00:23:08.680
Hey, welcome back again. It's a great Monday and great

366
00:23:08.720 --> 00:23:11.720
to be here and helping you guys, talk about you

367
00:23:11.920 --> 00:23:13.920
your tax debt and what you can do, what you

368
00:23:13.960 --> 00:23:18.440
can't do, and you know, can you achieve? You know

369
00:23:18.559 --> 00:23:23.759
the holy grail that offer and compromise. Oh, I see

370
00:23:24.240 --> 00:23:26.640
everything you hear in the radio. And every time you

371
00:23:26.680 --> 00:23:30.480
talk to somebody on when you call for help, first

372
00:23:30.480 --> 00:23:33.319
thing they say is, hey, we can get you out

373
00:23:33.400 --> 00:23:36.960
offering compromise. You're going to be able to settle your

374
00:23:37.279 --> 00:23:40.480
tax debt for pennies on the dollar, hang up, run

375
00:23:40.839 --> 00:23:45.680
wrong wording. An offering compromise that the I R S

376
00:23:45.920 --> 00:23:49.359
offers allows you to settle your tax debt for less

377
00:23:50.039 --> 00:23:54.799
than the full amount you owe. This is intended for

378
00:23:54.880 --> 00:24:02.279
the taxpayers experiencing actually true financial ship. It's available for

379
00:24:02.400 --> 00:24:06.559
those that can actually prove they have financial hardship and

380
00:24:06.640 --> 00:24:12.119
have no assets, no ability to pay. So what the

381
00:24:12.240 --> 00:24:16.160
irs does? It's going to review all the financial data,

382
00:24:16.200 --> 00:24:23.000
all the metrics and evaluate your financial profile, your financial health,

383
00:24:24.319 --> 00:24:30.039
looking at your income, your household expenses. And the big

384
00:24:30.160 --> 00:24:33.599
thing that many people don't tell you when you're calling

385
00:24:34.160 --> 00:24:39.000
and asking for help is your equity in your assets.

386
00:24:39.519 --> 00:24:42.799
Particularly most people, it's like equity in your home four

387
00:24:43.000 --> 00:24:48.480
one k's iras, yes, your retirement accounts, count, investment accounts,

388
00:24:49.640 --> 00:24:53.319
maybe other real estate you may own. All that comes

389
00:24:53.359 --> 00:24:59.000
into play when dealing with the dreaded IRS. I mean,

390
00:24:59.039 --> 00:25:02.000
that's just what they're going to look at. If you

391
00:25:02.160 --> 00:25:04.799
have one hundred thousand dollars of equity in your house,

392
00:25:05.400 --> 00:25:08.759
the IRS is going to look at that as an assets.

393
00:25:08.799 --> 00:25:12.920
It's available to them to help settle your debt. So

394
00:25:13.400 --> 00:25:15.359
you know, when they go in and put your house

395
00:25:15.400 --> 00:25:18.559
in you know, maybe your house is worth half a

396
00:25:18.599 --> 00:25:23.440
million and you have two hundred thousand dollars worth of debt,

397
00:25:23.920 --> 00:25:26.680
IRS is, Hey, we're going to look at fire sale value,

398
00:25:26.680 --> 00:25:30.440
which is eighty percent. So your house values four hundred

399
00:25:30.519 --> 00:25:34.480
thousand for the IRS, you have two hundred thousand dollars

400
00:25:34.519 --> 00:25:37.240
a debt, you have two hundred thousand dollars available. If

401
00:25:37.279 --> 00:25:39.640
your house value is four hundred thousand and your debt

402
00:25:39.680 --> 00:25:45.039
is four hundred thousand, you have zero available. So you know,

403
00:25:45.200 --> 00:25:47.799
those are the things the IRS is going to be

404
00:25:47.920 --> 00:25:52.319
looking at. They're going to look at your household expenses.

405
00:25:52.880 --> 00:25:56.759
Do they give you everything that you actually pay out? Well, yeah,

406
00:25:56.920 --> 00:26:00.440
if your actual is less than national standard. I've never

407
00:26:00.519 --> 00:26:04.880
seen that if your actual is more than national standards,

408
00:26:04.880 --> 00:26:08.599
they're only going to give you a national standards. So

409
00:26:08.799 --> 00:26:11.839
your house payment, when you're paying your mortgage, and your

410
00:26:11.880 --> 00:26:16.400
real estate taxes, and your your homeowners' association and utilities

411
00:26:16.480 --> 00:26:19.319
and everything else depending on where you live, you get

412
00:26:19.359 --> 00:26:22.839
maxed here. But if your payment is four hundred and

413
00:26:22.880 --> 00:26:28.480
five hundred dollars higher, they don't care. Household expenses, food, clothing,

414
00:26:29.039 --> 00:26:33.920
you may eat at a team's budget port into the irs.

415
00:26:34.200 --> 00:26:37.839
They're giving you only the pawn's budget. So you need

416
00:26:37.880 --> 00:26:40.319
to lower your expenses down because the only thing they're

417
00:26:40.319 --> 00:26:45.160
going to allow is that pawn's budget. Anything over that

418
00:26:45.200 --> 00:26:47.880
they think the IRS should have. So we've got to

419
00:26:47.920 --> 00:26:50.839
look at your finances. Hey, you've got a family of four.

420
00:26:50.960 --> 00:26:54.559
You you have two kids, they're both in college, and

421
00:26:54.599 --> 00:26:59.039
you're paying the college expenses not allowed. Yeah, they're maybe

422
00:26:59.119 --> 00:27:02.599
nineteen and twenty's still your kids. They can still be

423
00:27:02.680 --> 00:27:06.000
dependents and you get to claim them, but you don't

424
00:27:06.039 --> 00:27:08.160
get to claim the money that you pay for their

425
00:27:08.240 --> 00:27:12.680
college education. Sorry. Maybe you bought them cars, so you

426
00:27:12.759 --> 00:27:15.559
got a car for you, your wife bought a car for

427
00:27:15.599 --> 00:27:19.480
each of your two kids, and you got payments on

428
00:27:19.519 --> 00:27:24.200
all four cars only allow to you and your wife.

429
00:27:24.480 --> 00:27:28.640
That's it. Cars don't count if they're fully paid off.

430
00:27:29.000 --> 00:27:31.480
They want you to sell them and give that money

431
00:27:31.519 --> 00:27:35.880
to the IRS. They're going to value that through probably

432
00:27:35.960 --> 00:27:38.720
Kelly's blue blooking like we do, and give some kind

433
00:27:38.759 --> 00:27:41.440
of value of the cars. If they've got to need

434
00:27:41.480 --> 00:27:44.200
repairs and stuff, we get to deduct some of that stuff.

435
00:27:44.839 --> 00:27:48.720
But that's what they're going to look at. So you know,

436
00:27:49.039 --> 00:27:52.480
you've got to look and see how you qualify, if

437
00:27:52.519 --> 00:27:56.119
you qualify, and then how does this impact you. There

438
00:27:56.160 --> 00:27:59.119
are times we will not take you through an offering

439
00:27:59.200 --> 00:28:03.960
compromise because why because we know through your track record

440
00:28:04.000 --> 00:28:07.240
and your history even history working with us, that you

441
00:28:07.400 --> 00:28:11.960
cannot stay in compliance, and so offering compromise is one

442
00:28:11.960 --> 00:28:14.160
of the worst ways to go for you. Because why

443
00:28:14.559 --> 00:28:19.000
because an offering compromise puts five years of total compliance

444
00:28:19.640 --> 00:28:23.640
on you from the date it's accepted, and total compliance

445
00:28:23.680 --> 00:28:28.279
from the day you file for an offering compromise, so

446
00:28:28.279 --> 00:28:30.279
that could be six years, six and a half years,

447
00:28:30.319 --> 00:28:33.680
whatever it takes the IRS to processes. You've got to

448
00:28:33.759 --> 00:28:38.680
stay one hundred percent in compliance, not seventy five, not

449
00:28:38.799 --> 00:28:42.599
fifty five one hundred percent. And what if you don't,

450
00:28:42.880 --> 00:28:44.640
what if you miss a filing deadline, what if you

451
00:28:44.720 --> 00:28:48.359
owe more tax money? All this debt comes flowing back.

452
00:28:48.599 --> 00:28:51.000
I don't care whether it's after the first year, after

453
00:28:51.039 --> 00:28:54.440
the fourth year, that debt comes flying back, with all

454
00:28:54.480 --> 00:28:56.920
the penalties and interest and everything that should have accumulated

455
00:28:56.960 --> 00:29:00.319
over that time, it all comes back. Now you're back

456
00:29:00.359 --> 00:29:03.240
at square one. You might have been better off going

457
00:29:03.279 --> 00:29:07.640
to that partial pay installment agreement then going through this

458
00:29:07.680 --> 00:29:11.559
whole thing with offering compromise. Because the offering compromise while

459
00:29:11.559 --> 00:29:16.000
it was pending and while it's sitting out and accepted status,

460
00:29:16.039 --> 00:29:21.640
while it's still in good status, statute of limitations never run.

461
00:29:21.960 --> 00:29:24.519
So when all that debt comes flowing back after three

462
00:29:24.599 --> 00:29:27.279
years or four years, you got three to four years

463
00:29:27.319 --> 00:29:30.519
added to your statute of limitations because of that pause.

464
00:29:31.240 --> 00:29:34.160
So maybe that partial pay installment agreement was better for you.

465
00:29:34.519 --> 00:29:36.440
Now how do you know, Well, I'm gonna be honest.

466
00:29:36.519 --> 00:29:38.599
One of the ways you know is you call somebody

467
00:29:38.640 --> 00:29:42.519
like Taxation Solutions tax Relief to go to Taxation Solutions

468
00:29:42.559 --> 00:29:45.720
dot net or give us a call free consultation free

469
00:29:45.720 --> 00:29:49.200
call eight eight eight nine three zero one zero one

470
00:29:49.359 --> 00:29:52.519
six eight eight eight nine three zero one zero one

471
00:29:52.599 --> 00:29:55.119
six tell me you heard it here on Tax Talk

472
00:29:55.319 --> 00:29:58.759
for you get a special discount just for listening to

473
00:29:58.799 --> 00:30:03.200
the show. Listen to your aunt and talk about IRS

474
00:30:03.240 --> 00:30:08.400
solutions to your tax debt to save you and your family.

475
00:30:08.640 --> 00:30:11.440
That's the best way of going through. Do it now.

476
00:30:11.720 --> 00:30:14.759
A couple other things about you know, IRS offering Compromise

477
00:30:14.880 --> 00:30:18.039
IRS website. You can go to IRS dot gov look

478
00:30:18.119 --> 00:30:20.319
up Offering Compromise. You can see all the rules and

479
00:30:20.319 --> 00:30:23.160
everything there. They also have a pre qualifier so you

480
00:30:23.160 --> 00:30:24.920
can look in there and kind of test to see

481
00:30:24.920 --> 00:30:27.440
if you're going to qualify. But remember this is very

482
00:30:27.519 --> 00:30:31.880
vague and doesn't always tell you the truth. There's always

483
00:30:31.920 --> 00:30:35.119
things sometimes we can modify that are happening in your

484
00:30:35.119 --> 00:30:39.119
household to help you qualify. And you know, we can

485
00:30:39.279 --> 00:30:41.759
go through and do it. And then the IRS does

486
00:30:41.839 --> 00:30:46.039
charge application fees because you're going to file that four

487
00:30:46.200 --> 00:30:48.279
thirty three A if you have a business, the four

488
00:30:48.319 --> 00:30:51.480
point thirty three B and the form six fifty six.

489
00:30:52.640 --> 00:30:54.960
And with that Form six fifty six, you have to

490
00:30:54.960 --> 00:30:58.240
file the application fee, which is the two hundred and

491
00:30:58.279 --> 00:31:03.440
five dollars and an initial payment of the money you're

492
00:31:03.480 --> 00:31:08.400
proposing to settle for, and unless you are considered to

493
00:31:08.400 --> 00:31:11.640
be a low income taxpayer, you've got to pay both

494
00:31:11.680 --> 00:31:14.960
of those in. But if you are a low income taxpayer,

495
00:31:15.000 --> 00:31:18.519
we can get a waiver on both the initial payment

496
00:31:18.720 --> 00:31:21.720
and the two hundred and five application fee, so that

497
00:31:22.000 --> 00:31:27.960
is available there for you as well. One of the

498
00:31:27.960 --> 00:31:30.680
things that I want to be able to tell you is,

499
00:31:30.880 --> 00:31:34.000
you know, we all hear the radio, we get phone

500
00:31:34.039 --> 00:31:37.240
calls from people saying, hey, they're either with the I R.

501
00:31:37.400 --> 00:31:40.119
S or they're with somebody, and you owe thousands of

502
00:31:40.119 --> 00:31:43.519
dollars to the irs. And if you do, sometimes you

503
00:31:43.599 --> 00:31:46.240
fall for these scamps. But you've got to avoid them.

504
00:31:46.319 --> 00:31:49.799
You know. I tell people to be highly cautious of

505
00:31:49.880 --> 00:31:54.920
people that are very aggressive in you know, a company

506
00:31:55.000 --> 00:31:58.400
promising just to wipe away your tax debt for know

507
00:31:58.559 --> 00:32:04.640
that the dreaded four words pennies on the dollar. You know,

508
00:32:05.319 --> 00:32:09.400
do not want to have somebody that is going to

509
00:32:09.599 --> 00:32:12.680
promise you the moon, the stars and everything else that

510
00:32:12.759 --> 00:32:16.960
have never done an analysis with you. That's one of

511
00:32:16.960 --> 00:32:20.640
the reasons why we start with a tax analysis to

512
00:32:20.680 --> 00:32:23.519
be able to fully go through everything you need to do,

513
00:32:23.559 --> 00:32:26.119
because maybe the IRS is completely wrong and we can

514
00:32:26.160 --> 00:32:29.440
find a different solution to the problem by looking into

515
00:32:29.519 --> 00:32:32.160
the account to do it. Maybe you haven't filed all

516
00:32:32.160 --> 00:32:34.640
your tax returns and we've got to get those incompliance

517
00:32:34.720 --> 00:32:38.480
as well. Maybe you know you have more assets and

518
00:32:38.960 --> 00:32:41.920
they're not aware of them and never ask you the question,

519
00:32:42.039 --> 00:32:47.119
and you cannot settle for anything. You're going to have

520
00:32:47.160 --> 00:32:50.920
to go into an installment agreement. Yeah, i RS warns

521
00:32:50.960 --> 00:32:56.640
about offering compromise mills. You know, there are some good

522
00:32:56.680 --> 00:33:00.920
companies out there, there are some bad ones. Taxationslutions dot

523
00:33:01.000 --> 00:33:03.480
net has an A plus rating at the BBB, so

524
00:33:04.400 --> 00:33:09.039
you can check taxation Solutions out and see they're they're

525
00:33:09.160 --> 00:33:13.119
rating out there, and know that we service people. We

526
00:33:13.240 --> 00:33:16.480
give you that free consultation and free call again it's

527
00:33:16.559 --> 00:33:19.519
eight eight eight nine three zero one zero one six

528
00:33:20.359 --> 00:33:23.400
eight eight eight nine three zero one zero one six.

529
00:33:24.200 --> 00:33:26.359
Give them a call, give us a call and let

530
00:33:26.440 --> 00:33:28.279
us know that you owe money to the I R

531
00:33:28.400 --> 00:33:32.960
S and let us find that solution to you. You know,

532
00:33:33.200 --> 00:33:36.880
just got to watch out people making promises that they

533
00:33:36.960 --> 00:33:40.000
can't keep. We have people hang up on us because

534
00:33:40.000 --> 00:33:41.839
we tell the point blank. You know, based on the

535
00:33:41.839 --> 00:33:44.519
information they're giving us that you don't qualify for an

536
00:33:44.559 --> 00:33:47.920
offering compromise, and therefore, you know, we're not going to

537
00:33:48.000 --> 00:33:49.519
go after that. We're going to have to go after

538
00:33:49.559 --> 00:33:52.880
one of these other solutions out there and figure out

539
00:33:52.920 --> 00:33:56.319
the best solution, you know, for you. That's what we

540
00:33:56.440 --> 00:34:00.799
need to do to make sure that, Hey, you're going

541
00:34:00.880 --> 00:34:06.240
to stay one hundred compliance. Here's some questions from some

542
00:34:06.759 --> 00:34:09.079
previous shows, and I'm going to go through some of

543
00:34:09.119 --> 00:34:12.800
those questions right after we take this short break. If

544
00:34:12.800 --> 00:34:16.400
you've got questions about IRS, tax debt and settling your debt,

545
00:34:16.440 --> 00:34:18.480
hey get a man quick so we can get those

546
00:34:18.519 --> 00:34:19.519
answered as well.

547
00:34:19.920 --> 00:34:20.000
Well.

548
00:34:20.039 --> 00:34:21.239
It'll be right back after this.

549
00:34:22.679 --> 00:34:26.360
We have only scratched the surface of today's show. Please

550
00:34:26.400 --> 00:34:29.639
stand by as Barry G. Fowler will be right back

551
00:34:29.760 --> 00:34:35.559
with tax talk for you. As an owner operator, you

552
00:34:35.800 --> 00:34:39.239
already spend too much time away from your family. Stop

553
00:34:39.320 --> 00:34:43.679
spending time doing paperwork. Go to Trucker tax tools dot com,

554
00:34:43.760 --> 00:34:48.280
a solution built specifically for truckers. Trucker tax tools dot

555
00:34:48.320 --> 00:34:54.400
Com makes your life run smoothly. Let's get back to

556
00:34:54.519 --> 00:34:58.239
tax stock for you with more tax talk once again

557
00:34:58.719 --> 00:35:00.639
here's your host, Parry G.

558
00:35:00.880 --> 00:35:03.679
Fallum.

559
00:35:03.719 --> 00:35:06.400
All right, So one of the you know, when we're

560
00:35:06.679 --> 00:35:09.119
always doing the show, we get questions and sometimes we

561
00:35:09.199 --> 00:35:11.880
do the show ask the experts as well. We get

562
00:35:11.960 --> 00:35:16.000
questions over there that come in after the fact. We

563
00:35:16.199 --> 00:35:23.280
had Candice asked a question about es corpse. Now she

564
00:35:23.480 --> 00:35:27.320
has heard all throughout Facebook and I see it all

565
00:35:27.360 --> 00:35:30.360
the time at hey, you've got an LLC, you got

566
00:35:30.400 --> 00:35:34.119
to make it an escorp to save money on taxes?

567
00:35:35.280 --> 00:35:39.239
Should I become an escort? Well, that's generally a lot

568
00:35:39.280 --> 00:35:42.199
of times the question is it the right way to go?

569
00:35:42.719 --> 00:35:46.280
Should I take my LLC and make it an escort?

570
00:35:46.519 --> 00:35:50.400
So what they're proposing when they do this is setting

571
00:35:50.480 --> 00:35:52.159
you up as an es corpse so that you're on

572
00:35:52.239 --> 00:35:57.280
payroll and so that you're receiving a reasonable salary for

573
00:35:57.320 --> 00:36:00.400
the work that you do in the business, so that

574
00:36:01.639 --> 00:36:06.280
you're getting paid less than your typical and that profits.

575
00:36:06.320 --> 00:36:10.639
So you know, as your business's net income is you

576
00:36:10.920 --> 00:36:13.199
say one hundred or hundred and twenty thousand or something,

577
00:36:13.679 --> 00:36:18.800
and you set your payroll at you know, fifty thousand, Well,

578
00:36:19.360 --> 00:36:22.639
what you're doing is saving the self employment tax fifteen

579
00:36:22.679 --> 00:36:26.800
point three percent between you know that fifty thousand and

580
00:36:26.840 --> 00:36:29.639
so of your payroll and that one hundred or one

581
00:36:29.679 --> 00:36:32.880
hundred and twenty thousand, which would be normal your net income,

582
00:36:32.960 --> 00:36:36.039
So your net income would drop by you know, fifty thousand,

583
00:36:36.119 --> 00:36:39.239
but you received it in payroll, and so therefore you'd

584
00:36:39.280 --> 00:36:42.480
be saving fifteen point three percent on that fifty or

585
00:36:42.760 --> 00:36:46.519
seventy thousand. So on fifty thousand, you're talking about, you know,

586
00:36:46.880 --> 00:36:50.360
right around seventy five hundred dollars, So yes, that could

587
00:36:50.400 --> 00:36:53.239
be a smart move. But if you're only netting you know,

588
00:36:53.320 --> 00:36:57.239
forty or fifty thousand, then you know you're adding expenses

589
00:36:57.320 --> 00:37:02.400
of actually doing a s CORP tax return along with

590
00:37:02.840 --> 00:37:06.880
the cost of doing payroll. So you've got to take

591
00:37:06.920 --> 00:37:10.159
those things in account. So depending on what you're paying

592
00:37:10.280 --> 00:37:13.880
for both of those, you can deduct that amount of

593
00:37:13.880 --> 00:37:16.480
money out of that seventy five hundred and that's what

594
00:37:16.519 --> 00:37:19.159
you're keeping. So if you're right at break even when

595
00:37:19.159 --> 00:37:22.760
you have to do a reasonable salary out there for

596
00:37:23.000 --> 00:37:26.480
working in the business, then all you're doing is losing

597
00:37:26.519 --> 00:37:32.239
money paying the payroll service provider and paying for the

598
00:37:32.440 --> 00:37:35.559
ESCORP return to be done. So whatever that may be,

599
00:37:35.960 --> 00:37:38.519
if you're already doing payroll, then it's not an added

600
00:37:38.639 --> 00:37:43.199
cost of adding yourself to payroll, but you still have

601
00:37:43.280 --> 00:37:47.599
the added cost of filing the ESCORP return. So you know,

602
00:37:47.639 --> 00:37:49.880
we go through and do analysis for every company that

603
00:37:49.920 --> 00:37:53.599
we're doing bookkeeping and taxes for and determine, hey, is

604
00:37:53.599 --> 00:37:56.039
this the right route, so we make you an ESCORP

605
00:37:56.239 --> 00:37:58.880
or not, And we look at every company that is

606
00:37:59.000 --> 00:38:04.079
a single member LLC or sole proprietorship every single year

607
00:38:04.199 --> 00:38:09.280
to determine, you know, should what status should you be? Now,

608
00:38:09.320 --> 00:38:12.800
if you're an LLC and you're married, you can always

609
00:38:12.800 --> 00:38:15.559
make it possibly a multi member LLC, which you can

610
00:38:15.599 --> 00:38:19.159
then file as a partnership and then take away the

611
00:38:19.679 --> 00:38:23.840
need for payroll and have guaranteed payments, which is the

612
00:38:23.880 --> 00:38:28.280
only thing you'd be taxed on for self employment taxes

613
00:38:28.320 --> 00:38:31.960
as well, and so you have that ability to manipulate

614
00:38:32.320 --> 00:38:38.280
things there as well. Kirk had asked us of about

615
00:38:38.320 --> 00:38:44.280
the difference between filing taxes on your own versus business taxes. Now,

616
00:38:44.840 --> 00:38:48.400
if you're running a business, and depending on how your

617
00:38:48.440 --> 00:38:51.840
business is set up, again, you know, if partnership, you're

618
00:38:51.840 --> 00:38:53.840
going to file ten sixty five and get a K

619
00:38:53.960 --> 00:38:56.880
one to your personal if it's an escort, you're going

620
00:38:56.960 --> 00:38:59.360
to get a K one from the eleven twenty s

621
00:39:00.119 --> 00:39:03.239
file it on your personal If you are running a

622
00:39:03.280 --> 00:39:07.199
single member LC and did not make an election for Escorp,

623
00:39:07.280 --> 00:39:09.679
you're going to file it on Schedule C. If you're

624
00:39:09.719 --> 00:39:12.800
just a DBA, you're going to file it on Schedule C.

625
00:39:13.599 --> 00:39:16.320
If you are a corporation and did not make the

626
00:39:16.400 --> 00:39:21.199
election for escorp, so you were inc then you would

627
00:39:21.280 --> 00:39:26.599
file an eleven twenty and the entity pays its own taxes.

628
00:39:27.119 --> 00:39:31.159
There's some advantages to that. There's some ways that you

629
00:39:31.239 --> 00:39:37.159
can use that to your advantage, but again it's you've

630
00:39:37.159 --> 00:39:39.440
got to sit down with your tax preparer to make

631
00:39:39.559 --> 00:39:43.440
what's the best decision. The one reason I love businesses

632
00:39:43.639 --> 00:39:47.239
not being on the personal tax return besides a K

633
00:39:47.320 --> 00:39:51.719
one is it takes all the trash off your personal

634
00:39:51.760 --> 00:39:54.559
return and it puts it on a separate return for

635
00:39:54.599 --> 00:39:59.880
the business. Businesses are known to have a very low

636
00:40:00.480 --> 00:40:05.000
audit rate personally on Schedule C, those audit rates are

637
00:40:05.079 --> 00:40:10.159
much higher than they are as a partnership or an

638
00:40:10.280 --> 00:40:13.840
es core out there. That being said, you've got those

639
00:40:13.880 --> 00:40:16.239
more expenses and if you have all your numbers one

640
00:40:16.280 --> 00:40:19.159
hundred percent correct, because you've been using a company like

641
00:40:19.159 --> 00:40:23.079
truck or tax tools dot Com to do your bookkeeping,

642
00:40:23.639 --> 00:40:26.280
you would have less to worry about because we already

643
00:40:26.320 --> 00:40:28.280
have the I is dotted and t's crossed, and you

644
00:40:28.320 --> 00:40:31.880
don't have to worry as much. But again, sometimes why

645
00:40:32.000 --> 00:40:35.400
set yourself up for that when you really need for

646
00:40:35.480 --> 00:40:39.519
other reasons to be on an es Corp return or

647
00:40:39.559 --> 00:40:43.039
a partnership return. And again it takes the trash off

648
00:40:43.119 --> 00:40:48.079
your personal return and puts it over there. So some

649
00:40:48.360 --> 00:40:51.480
things to consider. Now, you're still when you're getting the

650
00:40:51.559 --> 00:40:54.199
K one, you're still getting tax on the net income

651
00:40:54.239 --> 00:40:57.360
from the business from the K one coming out of

652
00:40:57.400 --> 00:41:02.199
that escorporate partnership. And you know the company doesn't pay tax,

653
00:41:02.239 --> 00:41:04.519
which is a good thing because if you're an eleven twenty,

654
00:41:05.039 --> 00:41:08.199
your company pays tax, but when they distribute money to you,

655
00:41:08.840 --> 00:41:14.880
it's like a dividend from Exxon or McDonald's, and that's

656
00:41:14.960 --> 00:41:18.920
taxable to you as well, so it's considered double taxation.

657
00:41:19.679 --> 00:41:22.559
So those are the types of entsities you would look

658
00:41:22.599 --> 00:41:26.599
at most of the time, unless you have high income

659
00:41:26.639 --> 00:41:28.840
coming in and want a whole bunch of other benefits

660
00:41:28.880 --> 00:41:31.320
and it's only you and the business. Then you could

661
00:41:31.440 --> 00:41:36.599
look at an eleven twenty filing, but it's using a

662
00:41:36.679 --> 00:41:40.320
lot of defined benefit plans and medical type reimbursement plans

663
00:41:40.360 --> 00:41:42.119
and a whole bunch of other stuff that we can

664
00:41:43.360 --> 00:41:48.320
Okayn as you're listening today, also have a follow up question.

665
00:41:48.840 --> 00:41:52.840
Would it be better to have a LLC or a

666
00:41:53.119 --> 00:41:58.480
inc as a startup so incorporated business being a corporation

667
00:41:58.920 --> 00:42:03.639
or a HIGHS So you got widgets LLC or maybe

668
00:42:03.639 --> 00:42:09.159
with Widgets Inc. Maybe Widgets Enterprises Corp. Or Widgets Corp.

669
00:42:10.519 --> 00:42:14.239
That LLC is a great way to start because it

670
00:42:14.360 --> 00:42:18.960
actually is less paperwork. It can actually be your first

671
00:42:19.039 --> 00:42:22.840
year maybe on schedule C. But if you are making

672
00:42:23.280 --> 00:42:25.559
a whole bunch of money, or your business plan shows

673
00:42:25.639 --> 00:42:27.239
you're going to have a lot of money coming in

674
00:42:27.280 --> 00:42:29.239
and you've got contracts out there that are paying you

675
00:42:29.360 --> 00:42:32.519
really well, that LLC can make that election, you know,

676
00:42:32.840 --> 00:42:35.119
within that first two and a half months of startup

677
00:42:35.519 --> 00:42:37.840
to be an escorp or maybe we're towards the end

678
00:42:37.880 --> 00:42:39.760
of the year and we can wait till the next

679
00:42:39.840 --> 00:42:44.559
year in January, February or by March fifteenth to make

680
00:42:44.599 --> 00:42:49.719
that ESCORP election. So that LLC gives you functionally the

681
00:42:49.840 --> 00:42:56.800
flexibility to be a schedule C versus being an es

682
00:42:56.840 --> 00:43:01.000
corp out there as well. So yeah, have a little

683
00:43:01.039 --> 00:43:04.760
bit of flexibility. And you know, some of my attorney

684
00:43:04.760 --> 00:43:07.280
friends say, hey, the paperwork behind and out i'll see

685
00:43:07.440 --> 00:43:11.159
is a little bit easier. Most people don't keep a

686
00:43:11.199 --> 00:43:14.360
full corporate book for an out i'll see, especially if

687
00:43:14.360 --> 00:43:17.079
it's a single member. Now, if you're a multi member,

688
00:43:17.559 --> 00:43:20.000
you're going to want that corporate book, especially if it's

689
00:43:20.000 --> 00:43:23.760
external to the family or external between you know, not

690
00:43:23.920 --> 00:43:27.400
you and your spouse, but maybe between you and your

691
00:43:27.440 --> 00:43:30.960
brother or your sister or other family members, or you

692
00:43:31.000 --> 00:43:33.280
and somebody that you're just friends with that you're going

693
00:43:33.320 --> 00:43:35.960
into business. You'd want that corporate book to dot your

694
00:43:35.960 --> 00:43:38.239
eyes and cross your t's and make sure that everything's

695
00:43:38.320 --> 00:43:42.679
going correctly. And then you want some good bookkeeping services

696
00:43:42.719 --> 00:43:46.960
to help you as well, because again, whether you are

697
00:43:47.199 --> 00:43:50.840
a single member, LC, multi member, or an escort, you

698
00:43:50.960 --> 00:43:53.480
want to make sure the numbers behind your tax return

699
00:43:53.960 --> 00:43:58.239
are really good as well. So you know that's what

700
00:43:58.360 --> 00:44:01.559
you're going to be looking for. And like I said,

701
00:44:01.599 --> 00:44:06.800
you have that flexibility as an LLC to do taxes

702
00:44:06.960 --> 00:44:09.719
in different forms. I mean, we could actually if you're

703
00:44:09.840 --> 00:44:13.599
married and happily and you want to add your spouse

704
00:44:13.639 --> 00:44:16.800
on the LLC towards the end of the year, then

705
00:44:16.840 --> 00:44:20.000
we have the ability to do that as if they've

706
00:44:20.039 --> 00:44:22.960
been there the whole time. There's a little bit of

707
00:44:23.000 --> 00:44:25.679
flexibility to look at as you're going through and doing

708
00:44:26.199 --> 00:44:29.760
what are my attorneys, the friends that I have recommend

709
00:44:29.920 --> 00:44:33.360
going that route versus the corporate route because you're automatically

710
00:44:33.400 --> 00:44:36.960
having to either file for ESCORP status or you're automatically

711
00:44:37.000 --> 00:44:40.639
having a file at eleven twenty when you file for

712
00:44:40.719 --> 00:44:44.119
your employer identification number. It's going to lay out everything

713
00:44:44.159 --> 00:44:46.800
that you've got to do, including whether you have to

714
00:44:46.800 --> 00:44:51.039
file nine to forty ones and payroll south Man time

715
00:44:51.159 --> 00:44:55.679
flies when you're having fun talking about, you know, taxes,

716
00:44:55.840 --> 00:44:59.840
helping people through their tax debts and what we can

717
00:44:59.880 --> 00:45:03.480
do you to solve their tax problems. You know that

718
00:45:03.559 --> 00:45:07.320
starts with making the phone call to Taxation Solutions dot net,

719
00:45:07.679 --> 00:45:11.760
Taxation Solutions, Tax Relief again A plus rated at the BBB.

720
00:45:12.400 --> 00:45:15.360
Phone number is eight eight eight nine three zero one

721
00:45:15.519 --> 00:45:18.760
zero one six again eight eight eight nine three zero

722
00:45:18.880 --> 00:45:23.079
one zero one six And as always you can find

723
00:45:23.159 --> 00:45:25.840
us here every Monday at ten am Eastern time on

724
00:45:26.000 --> 00:45:28.960
W four c Y Radio. You also can go to

725
00:45:29.159 --> 00:45:33.119
Facebook and follow us over there. Follow us at tax

726
00:45:33.199 --> 00:45:37.119
Talk the number four letter you dot Com Again, tax

727
00:45:37.199 --> 00:45:41.079
Talk the number four the letter YOUU dot com. Follow

728
00:45:41.159 --> 00:45:43.239
us there. Never miss an episode and if you do,

729
00:45:43.840 --> 00:45:49.199
you know we're on iHeart, Spotify, all the podcasts web

730
00:45:49.239 --> 00:45:53.360
hosting sites. Get over there and see it. Come back

731
00:45:53.400 --> 00:45:55.960
and there's something you want to listen to figure out,

732
00:45:56.320 --> 00:45:59.440
that's where to go and catch one of our podcasts.

733
00:45:59.440 --> 00:46:02.360
But again it's Talk for you dot com. Hey, thanks

734
00:46:02.400 --> 00:46:05.599
again for tennered in. Hey have a god bless and

735
00:46:05.760 --> 00:46:10.679
glorious week and do what you love and hey, love

736
00:46:10.719 --> 00:46:13.559
your spouse. Have a great week. We'll see you next Monday,

737
00:46:13.639 --> 00:46:16.960
ten am Eastern time right here at W four CUY Radio.

738
00:46:18.239 --> 00:46:21.440
Are you an individual or business that wants to understand

739
00:46:21.480 --> 00:46:24.880
taxes and how they affect you. Are you looking for

740
00:46:24.920 --> 00:46:30.360
specific tax advice for self employed business owners and truckers.

741
00:46:30.920 --> 00:46:34.960
Are you behind on taxes and your bookkeeping? Are you

742
00:46:35.079 --> 00:46:38.039
dealing with the irs and ready to have some relief,

743
00:46:38.880 --> 00:46:42.679
Then you need Tax Talk for you, hosted by tax

744
00:46:42.760 --> 00:46:47.280
and trucker expert Barry g. Fouer EA Tune in ten

745
00:46:47.360 --> 00:46:51.000
am Eastern Time every Monday right here on W four

746
00:46:51.119 --> 00:46:54.599
CY Radio and Talk for TV. Don't forget to check

747
00:46:54.719 --> 00:46:59.519
this and past episodes at tax TALKFORU dot com. See

748
00:46:59.559 --> 00:47:04.760
you next weekend, W four c Y dot com