Nov. 3, 2025

Tax questions and answers during government shutdown

Tax questions and answers during government shutdown
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Season 3

• 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,

Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).

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WEBVTT

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The topics and opinions express in the following show are

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solely those of the hosts and their guests and not

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those of W FOURCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicitor implies shall be extended to W FOURCY Radio

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or it's employees are affiliates. Any questions or comments should

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be directed to those show hosts. Thank you for choosing

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W FOURCY Radio.

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Barry G.

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Fouler EA brings you tax talk for you right here

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on W four CY Radio and talk for TV. As

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an enrolled agent and a national leader in tax resolution

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as well as Trucker bookkeeping and tax planning. With over

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thirty years of experience, Barry will break down taxes, bookkeeping,

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tax planning, and tax relief for individuals and businesses just

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like you. So let's have some tax talk for you

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with your hosts.

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Barry G or.

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Hey, welcome, It's another great Monday morning to be here

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talking about taxes, bookkeeping, Uh, you know, whatever you really

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want to bring up. This is this is kind of

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your show. I mean, you know, this is tax talk

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for you. What do you need to know about your taxes?

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What do you need to know about planning? What are

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we doing these days? Because the i r S doesn't

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seem to be doing much government shutdown. You know, everybody

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asks who's working at the i RS during the shutdown?

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You know, during government shutdown, i RS does retain roughly

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let's say, fifty three percent of its workforce, right around

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forty thousand people to perform the accepted and exempt activities

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that the IRS has to do. Now, the majority of

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the workforce, including most customer service representatives and audit staff,

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is actually furlough. Now, there are a bunch of employees

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working still at the IRS that were exempt. Those retained

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employees primarily focused on tasks for revenue collections. Imagine that

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they still want their money national security, preparing for the

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upcoming tax filing season. You know, these are funded by

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non annual appropriations and as such, the money from the

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Inflation Reduction Act key functions. Now, the staff that is working,

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they are working to process tax returns with payments through

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processing returns, requesting refunds is largely suspend it. Imagine that

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they're not going to send you your money. They still

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want to process their money, so they're not going to give,

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but they will take. Isn't that a fun thing? You

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know you owe the IRS money, They're going to make

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sure that they're going to get it from you, But

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they owe you well. You know, you should have filed

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by October fifteenth. You may have gotten the money by now.

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You file after that, it's probably delayed processing. So just

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remember you may have a delay if you had a

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refund coming back. Testing and preparation for the upcoming tax

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filing season, now this is important. See if they don't

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continue to work at fixing their forms and how information

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is accepted through electronic filing, then the twenty twenty six

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filing season would be very much delayed. They're usually slow

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at this anyway, but they've got to get their computer

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systems up and going and ready so that they can start.

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It's accepting returns as soon as possible and getting refunds

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out as soon as possible in twenty twenty six. So

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having somebody there that's going to be testing and preparing

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for this stuff helps facilitate both money coming into the

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IRS by people early filing and paying their taxes or

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paying their estimated taxes and getting refunds back out for

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those that are normally getting refunds so that these returns

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can be processed properly, promptly, timely. So right now they

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have limited and we mean limited live telephone customer service assistance.

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It is still available because most of the call sites

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and operations are actually closed. So that being said, you know,

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if you need assistance a customer service from the IRS,

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you may be on hold a long time. You may

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have to actually call a couple of different days to

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finally get through. We're lucky enough we do have as

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enrolled agents and those doing representation have a priority service

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line so we can get through and work with the

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revenue agents and stuff to facilitate moving clients documents forward,

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or getting payment plans in place, or getting holes in place,

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or even non collectible status or even getting those offering

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compromises filed. Now they may not be processing them for

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a little while, but at least they're filed and they're

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in the queue to be worked. Criminal Investigations SI Division,

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those people are still working. You know, they're still investigating

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the criminal activity fraud things like that on the tax

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returns and they're going after people, so you got to

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be on look at it. If you did something wrong,

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you have to worry about it. But if you're most

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like most normal taxpayers, criminal investigation units should not be

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bothering you know, unless you've really committed fraud, and you

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better get an attorney if you did commit fraud and

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you know you're under investigation. Information technology it's the support

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for criminal or criminal critical systems out there. They're not

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going to shut their computer systems down. They're going to

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want to make sure that that computer is still generating

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notices and getting them out to you that oh so,

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computer systems, electricity, all that stuff's still running, and they

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have to have people working in the information area to

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make sure those systems are still running properly. They have

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staff that ensure the security of government property and data systems.

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You know, they're not just furlowing everybody. The property needs

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to still be secured so your information is still secure.

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So they do have people working in that industry and

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that part of the visions to ensure that the systems

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are also they're running and they are secure. Now, the

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IRS does have some revenue agents in the Small business

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and large business divisions remain although overall enforcement activity is

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significantly reduced. Now that just means there's not somebody going

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to sign off on levee in your bank account today.

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Doesn't mean you're not getting the notices. It doesn't mean

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that the system isn't still putting things in place that

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there could eventually be levees. If you are running close

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to your statute of limitations, I would almost guarantee you

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one of these revenue agents is working to get collections

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or levees against you before that statue limitations run out.

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So you know you may be watching your statute of limitations,

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which the statue of limitations is ten years from the

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date that your tax return was filed and accepted. Now,

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if they audited you, who may changes, then it's ten

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years from that. So you know you filed your your

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tax return ten years ago, you're coming up on statute

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of limitations. Let's say you filed in November of twenty fifteen,

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you should be at statute of limitations this month. Well,

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you can bet your bottom dollar the IRS is now

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doing something to get after that money. So you know,

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watch your bank accounts. You just don't know what's going

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to happen out there. And I guarantee you if you've

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gotten a notice already that there's an intental levey, they

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can levy at any time you know thereafter. So you

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know those revenue agents revenue officers are going to be

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coming after money. That's almost a given. And then you

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can't contact anybody because you're not going to get through

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regular lines just to be able to talk to somebody

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at the i r S to do something. So you

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really need some help and you really need to get

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after it. I do tell you, tokay, call us at

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Taxation Solutions. Go to Taxation Solutions dot net or call

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us at eight eight eight nine three zero one zero

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one six again eight eight eight nine three zero one

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zero one six, and that's Taxation Solutions. Let us get

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a solution in place to your IRS problem. Now, you know,

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you know all these people that are working, and they're

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working in the critical portion of the i r S,

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and you know there are a lot of different divisions

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and different parts of the i r S that are

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actually referrowed that are not working, but the critical parts

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of the i r S are still in place, and

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you know they're mainly looking at processing again those returns

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where you owe money again collections going after the money

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that is owed to the IRS. Now, the bad part is,

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you know, if you owe the IRS money and they're

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coming after you today, they're trying to get the money

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from you that you owe, and then you have no

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way of calling in and getting that levy, lean wage

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garnishment stopped because you can't get through to anybody. Nobody's

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really working. It makes your life miserable. So if you

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are in that situation again, get some help, get somebody

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on your side. It's going to step into your shoes

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and talk to and deal with the IRS itself. Now,

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after this quick break, we're going to talk about what

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employees and what divisions are actually furloughed not working today

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at the IRS. And we'll do that right after this.

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We have only scratched the surface of today's show. Please

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stand by as Barry G. Fowler will be right back

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with tax talk for you. If you own the IRS

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or are going through an IRS audit, don't go at

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it alone. Call Taxation Solutions Tax Relief at eight eight

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eight nine three zero one zero one six. We are

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your solution for IRS debts, audits, back taxes, garnishments, leans

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and levees whether you're an individual or business, you need

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a solution and a strong, aggressive tax resolution.

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Don't let the IRS walk all over you.

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Stop the irs now call eight eight eight nine three

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zero one zero one six or go to Taxationsolutions dot

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net now for a free no obligation consultation. Let's get

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back to tax stock for you with more tax stock

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once again.

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Here's your host, Barry G. Ballo.

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Hey, welcome back. You know we're talking about higher s,

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government higher s and government shutdown. You know, sometimes the

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government being shut down is a great thing in that.

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You know, Hey, if nobody is working at the I

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R s or limited people are working at the I

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R s, maybe they're going to be limited in collections.

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Doesn't usually happen, but maybe you maybe learn that you

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don't need to be dependent on the government, that you

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can be more self sufficient. You're not there. It doesn't

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affect your everyday life now, you know. For all the

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government employees, yes, you know, it's it's a hard thing

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not getting a paycheck and everything else. While people fight

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this out, or one group's fighting for more money for

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Obamacare that is broken, bad system, and fight for money

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for illegals, the other group is you know, trying to

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just pass a clean resolution, which is what should be happening,

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should go forward from there, and we shouldn't be in

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a government shutdown. You know, we've seen arguments on both sides.

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I think the clean resolution is the right way to go.

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Keep the government open and battle it out in Congress

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the way it was supposed to be. Now, you should

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have had a budget done before the fiscal years started,

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which was I think starts in October, and you should

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have had this done way back then. You shouldn't be

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waiting til the last minute to set the budget. You

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should be balancing your budget as well, living within your means.

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You and I can't live off credit cards forever. Government

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seems like it wants to. But hey, this is a

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situation we're in. So what employees for the I r

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S are actually furrowed? Well, it's about fifty forty six

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percent of IRS staff is actually furloughed and placed in

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a non pay nine duty status. These actual employees cannot

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work until the shutdown ends. So you know, this includes

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people that issue refunds. For most returns, you're waiting on

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a refund, You're probably still waiting non auditmated collections and

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audit functions. This means examinations and appeal. So if you've

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got something that's actually going through an audit, they're furloughed

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right now. You still have to meet your deadlines that

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you had. So if you had a deadline and you

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had to provide information to the auditor, make sure you

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meet that deadline. Don't ignore it because they're not working.

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They're going to come back in and go, Nope, you

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didn't meet the deadline, and then you're in trouble. Same

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with if you have something on appeal and you had

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to appeal something by a certain date, make sure that

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appeal is in before the deadline because they're still going

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to go back to that sixty day ninety day deadline

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that you had to file your appeal, and if you

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missed it, then your appeal is not going to be there.

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You're not going to be able to go through the appeal.

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If you had documents that were due to the appeals

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officer by a certain period of time, get those in.

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Same thing. If you've got an offer and compromise and

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they were asking for documents for an offer and compromise,

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get it in. Meet the deadline regardless of whether that

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revenue officer, the officer investigating the offer, or the appeals agent,

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is they're working or not, you still need to meet

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all your deadlines. So staff that respond to general tax

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payer questions through the call sites and through correspondence. This

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is you know when we were talking about audit functions,

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sometimes you have correspondence audits. Well, it's the same thing.

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Nobody's working behind the scenes on that. So nobody else

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is working to respond to taxpayer questions through the call

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centers and most correspondents, so there's nobody going to be

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answering those things. But again, if you've got a deadline,

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meet your deadlines. Don't assume that these guys are going

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to extend deadline just because they're not working. They don't

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have to, and by law that you have the requirements

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to meet what they've set down to say, hey, you've

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got to provide these documents in a timely manner. So

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they've also got nobody working processing non disaster relief transcripts

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so and income verification services. So you know, if you've

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got income that needs to be verified or you've got

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disaster relief, you're going to get still some help. But

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if it's non disaster relief for transcripts or income verification.

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Guess what your sol That means. Mortgage companies that are

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sending in eighty two fifty three's request for information to

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verify your income was reported to the IRS and they

255
00:17:30.680 --> 00:17:34.119
can verify it for your mortgage, they're not probably getting

256
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those processed, so you may have delays in your mortgage

257
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mortgage if the IRS is not working handling these functions,

258
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So you know, keep that in mind if you're going

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for a new mortgage and stuff, you may have a

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00:17:53.240 --> 00:17:59.400
problem verifying income. Unfortunately, most mortgage companies don't believe tax

261
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returns you or high or anybody else gives them, or

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any statements from anybody else. They're looking for independent verification

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from the IRS by eighty two fifty three's which gets

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the transcripts for them to from the IRS and they're

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able to get that information. So now if you're lucky

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enough and they're set up to where they've got information access,

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they might be able to do it through the online

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IRS portals and stuff to be able to access the

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information via you giving permission through system. As long as

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you've got a log in, Hey, Gene, you know you've

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got a great statement there and question. They can hold

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us accountable, but we can't hold them accountable. Have you

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ever been able to hold the Irs or anybody in

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the government accountable for anything they do? You know, Trump

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seems to be trying, but you know, again, no, you're

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not going to be able to hold them accountable for

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during this time of getting refunds out to you, getting

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information out to you, this part of the government shutdown. Uh.

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You know, we tell our congressman, hey, we want the

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government up and we want to be able to have

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the full functions of the government. But if you can't

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pass a continuing resolution, you can't have every function of

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the government going. So therefore we have to deal with

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what we've got to deal with, good, bad, or indifferent,

285
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depending on what everybody's opinion is. But in this case,

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this is the way the government is working today. Another

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division that's closed is Taxpayer Advocate Services. If you've requested

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help from taxpayer advocate by filing a Form nine to

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00:19:55.200 --> 00:19:59.480
one one, you know you're going to be delayed in

290
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getting the help from taxpayer Advocate Services, and that delay

291
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is because of government shutdown. There's nobody going to be

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working there now. The IRS, Federal government. All this combined,

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00:20:16.799 --> 00:20:20.599
you as a taxpayer are still required to meet all

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filing and payment deadlines, but you have to expect significant

295
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delays in services that require manual processing or interaction with

296
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furload staff. Of course, we can't work with furloughed staff.

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They're not working, So that doesn't make sense when you

298
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see a statement like that that the IRS puts out.

299
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But again, you are still responsible to meet all filing

300
00:20:47.319 --> 00:20:52.880
and payment deadlines, so keep that in mind. Even during

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times of government shutdown, they still expect you to do

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your part in this, So you know, you've got to

303
00:21:03.200 --> 00:21:05.759
really think about what you're doing. Make sure you're dotting

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your eyes, crossing your t's, and following through. Hey, we've

305
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got some questions about business and business startups and we're

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00:21:15.240 --> 00:21:18.039
going to be addressing that. You know, after we take

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this break. Again, if you've got IRS problems, called Taxation Solutions,

308
00:21:22.759 --> 00:21:25.599
go to Taxation Solutions dot net. You call them at

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eight eight eight nine three zero one zero one six

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again eight eight eight nine three zero one zero one six.

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And right off this break, we're going to answer Francis's

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question and talk about small businesses, and we'll do that

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right after this.

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We have only scratched the surface of today's show. Please

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stand by as Barry J. Bowler will be right back with.

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Tax talk for you.

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As an owner operator, you already spend too much time

318
00:21:55.799 --> 00:21:59.599
away from your family. Trucker Tax Tools handles all your

319
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320
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family should suffer. Trucker Tax Tools makes your life run smoothly.

323
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A free guide that will give you the tools to

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never worry about your taxes again. Call Trucker Tax Tools

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eight seven seven nine six six two four seven seven

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00:22:28.279 --> 00:22:31.400
or go to Trucker tax Tools dot com now and

328
00:22:31.559 --> 00:22:37.839
let the experts keep you trucking. Let's get back to

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tax stock for you with more tax stock once again,

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here's your host, Barry G.

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Faller.

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Hey, welcome back. Hey, I love questions. We got some

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great questions about small businesses and opening businesses up. First

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one that I do want to answer is from Francis. Hey, Francis,

335
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thanks for the question. Is it better to have a

336
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small business or just run taxes on our tax form.

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So I'm going to fill in the blank here. Is

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it better to have a business that files taxes on

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00:23:10.799 --> 00:23:13.640
its own tax form or just run them on our

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tax form. Now, everybody's business is different, so you know,

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I'd like to tell people a lot of times that

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I want to keep the trash off your personal tax return.

343
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And sometimes that is one hundred percent worth it, depending

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on the business that you're running and how much business

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you're doing. I mean, if you're doing a small business

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that you know, maybe you only make ten twenty thirty

347
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thousand dollars gross revenues, you know, it probably doesn't matter

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whether you run it on your personal tax return on

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schedule see or if you were to run it as

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a S corp or multi member partnership. That's out there.

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But if you've got you know, maybe a husband and wife,

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you can either do ATUALC or you can do multi

353
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member partnership. It gives you some options. Otherwise you're a

354
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escort or you're a C corp which files on eleven twenty.

355
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But a lot of times I tell people, hey, we

356
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want to get the trash off there, meaning there's too

357
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much detail, there's too many things that can get confusing

358
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when somebody runs a business, and it's better to keep

359
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things completely separate. It's also easier if you did go

360
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through an audit to have your business and personal completely separate.

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What we tell everybody you know, first and foremost is

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making sure that you have a completely separate checking account

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for your business versus your personal and don't commingle, meaning

364
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you're not running personal expenses through your business account and

365
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you're not running business expenses through your personal account. So

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you know, both ways. It's got to work, but added complications,

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00:25:02.160 --> 00:25:05.000
So it just depends on how much complications you want.

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If your net income isn't very high in your business,

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then it makes no difference and actually better to be

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00:25:11.720 --> 00:25:15.759
on Schedule C for you because you're not having to

371
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spend the money to do payroll as a es CORP

372
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and an escorp tax return that adds quite a bit

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of expenses to your business and makes your bottom line

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much smaller, ma'am. That being said, if your income is

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very very strong, you know, and let's say we're going

376
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to just use some easy round numbers, you're going to

377
00:25:39.279 --> 00:25:43.680
net income one hundred thousand dollars. That net income on

378
00:25:43.720 --> 00:25:48.319
a Schedule C is completely subject to self employment tax.

379
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So that self employment tax is fifteen thousand, three hundred

380
00:25:53.400 --> 00:25:56.559
sumidd dollars for social security and medicare. You get to

381
00:25:56.559 --> 00:26:01.039
pay both sides, ma'am. As an escort. You have to

382
00:26:01.079 --> 00:26:05.200
have a reasonable salary as a business owner working in there.

383
00:26:05.519 --> 00:26:08.079
So depending on what your reasonable salary can be, and

384
00:26:08.160 --> 00:26:09.640
we're just going to say, let's say it could be

385
00:26:09.640 --> 00:26:12.880
fifty thousand, somebody you would pay somebody else to do

386
00:26:12.920 --> 00:26:16.039
this job for you and work in your business for

387
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fifty thousand dollars, means you could have your salary at

388
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fifty thousand. That salary would be subject to payroll taxes.

389
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So security and medicare same as self employment and differences.

390
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The company pays half, you pay half, you're the business owner.

391
00:26:33.680 --> 00:26:37.079
You're paying both halfs anyway, regardless whether it's self employment

392
00:26:37.200 --> 00:26:41.119
or it's through payroll, it's just listed differently and it's

393
00:26:41.160 --> 00:26:45.519
on tax forms and on W two. So you will

394
00:26:45.519 --> 00:26:49.640
pay basically that seven six hundred and fifty dollars in

395
00:26:50.359 --> 00:26:55.759
payroll taxes a self employment taxes. But on the other side,

396
00:26:56.039 --> 00:26:59.960
the other fifty thousand you're not going to pay self

397
00:27:00.000 --> 00:27:04.119
employment taxes on. So basically it saves you seven six

398
00:27:04.240 --> 00:27:07.640
hundred and fifty dollars, but you've got to subtract out

399
00:27:07.640 --> 00:27:11.119
of that the expense of having payroll and the expense

400
00:27:11.160 --> 00:27:14.559
of having another tax return done, and corporate returns are

401
00:27:14.599 --> 00:27:18.000
not the chiefest returns out there, so you got to

402
00:27:18.039 --> 00:27:22.039
factor all that in. So, yes, at that point, there

403
00:27:22.200 --> 00:27:26.000
is more savings for you, and it becomes worthwhile. And

404
00:27:26.119 --> 00:27:30.000
you get somewhere in that borderline at seventy five thousand

405
00:27:30.160 --> 00:27:34.599
or under sixty thousand and under that, hey, you're probably

406
00:27:34.640 --> 00:27:37.839
at a break even, meaning you're saving money, but the

407
00:27:37.880 --> 00:27:40.680
money you're saving is pretty much going to be going

408
00:27:40.759 --> 00:27:44.640
to get the taxes in payroll. So is it really

409
00:27:44.680 --> 00:27:47.160
worth it at that point? Who you pay to get

410
00:27:47.160 --> 00:27:50.559
it done? That becomes debatable. How many hoops you want

411
00:27:50.559 --> 00:27:54.559
to tell them through. So you know, those are the

412
00:27:54.599 --> 00:27:58.119
kind of things that you know, we definitely look at

413
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for you and you know, help make a decision on

414
00:28:03.720 --> 00:28:08.119
you know, whether this is possible or whether or not

415
00:28:09.880 --> 00:28:12.599
you should be filing or filing on schedule. See, it's

416
00:28:12.599 --> 00:28:14.039
something you got to sit down and talk to your

417
00:28:14.079 --> 00:28:18.519
tax prepayer with through some tax planning. You know what's

418
00:28:18.559 --> 00:28:22.559
going to work best for me? You know, do I

419
00:28:22.720 --> 00:28:28.039
want to file with my business on my return or

420
00:28:28.079 --> 00:28:31.240
do I want to file it separately? You know, that

421
00:28:31.519 --> 00:28:37.839
becomes the biggest question. So you know you're now sitting

422
00:28:37.920 --> 00:28:40.359
here and deciding, you know, what do I want to

423
00:28:40.400 --> 00:28:42.279
do in business? How do I want to look at

424
00:28:42.319 --> 00:28:46.319
my tax strategy behind my business? So some of these

425
00:28:46.359 --> 00:28:50.960
things you might need to to look at. And when

426
00:28:51.000 --> 00:28:53.000
you're starting up your business, you know, you kind of

427
00:28:53.039 --> 00:28:57.039
go through, you know, ten different steps to start a business,

428
00:28:57.599 --> 00:29:01.519
and I like what you know the SPA does and

429
00:29:01.599 --> 00:29:03.799
they put out there like there are ten steps out

430
00:29:03.880 --> 00:29:07.359
there where you sit down and you first start out

431
00:29:07.359 --> 00:29:13.680
conducting market research and writing a business plan and then

432
00:29:13.759 --> 00:29:17.559
figuring out how you're going to fund your business. And

433
00:29:17.599 --> 00:29:21.440
then same time you're picking location. Now, remember people talk

434
00:29:21.480 --> 00:29:25.039
about location, location, location, It becomes very important depending on

435
00:29:25.079 --> 00:29:26.960
the type of business you are. Now, if you're a

436
00:29:27.039 --> 00:29:30.599
virtual business, it doesn't matter, but if you've got to

437
00:29:30.680 --> 00:29:34.920
have a storefront, a shop where people come into either

438
00:29:35.039 --> 00:29:37.920
to pick things up or work with you, your location

439
00:29:38.400 --> 00:29:44.119
is extremely important. And as Francis said, you're talking about taxes,

440
00:29:44.160 --> 00:29:46.480
but we also relate that to business structure. You're going

441
00:29:46.519 --> 00:29:49.400
to be an LLC. Are you going to be an escort?

442
00:29:49.480 --> 00:29:50.960
Are you going to be an inc? Are you going

443
00:29:51.000 --> 00:29:53.880
to be a C corp? Or you're just going to

444
00:29:53.880 --> 00:29:58.759
be a sole proprietor DBA. You know, you have all

445
00:29:58.880 --> 00:30:01.279
those different options, but you've got to sit out and

446
00:30:01.319 --> 00:30:07.440
make a decision on those options. Greg asked about choosing

447
00:30:07.440 --> 00:30:10.839
your business name and how important is it. Well, choosing

448
00:30:10.880 --> 00:30:14.240
a business name can be extremely important. It's one of

449
00:30:14.279 --> 00:30:18.240
the ten steps that SBA puts out there because it's

450
00:30:18.279 --> 00:30:20.519
sometimes it's not easy to pick the perfect name. You

451
00:30:20.559 --> 00:30:24.920
want one that reflects your brand, captures the spirit of

452
00:30:24.960 --> 00:30:28.839
your organization and what your organization does, and you've got

453
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to make sure it's not being used as well. Hey,

454
00:30:31.599 --> 00:30:33.720
we've got a couple other quick questions that came in

455
00:30:34.680 --> 00:30:37.279
from Casey. What if your business is only making about

456
00:30:37.279 --> 00:30:39.440
thirty five thousand and you can't afford to take a

457
00:30:39.519 --> 00:30:43.319
salary other than about three thousand that year to do

458
00:30:43.720 --> 00:30:47.920
business costs well, Casey, you know when we look at that,

459
00:30:48.079 --> 00:30:51.440
you're only netting thirty five thousand having it as a

460
00:30:51.519 --> 00:30:56.400
schedule CEE, you're going to pay fifteen point three percent

461
00:30:56.559 --> 00:31:00.359
on that for social security and medicare so You're business

462
00:31:00.440 --> 00:31:06.119
is actually netting less than that out there, so you

463
00:31:06.119 --> 00:31:10.119
know you're going to have roughly uh, you know, that's

464
00:31:11.279 --> 00:31:16.240
four thousand, five thousand dollars in self employment taxes. Part

465
00:31:16.279 --> 00:31:19.799
of that's deductible on your taxes as well, but uh,

466
00:31:20.480 --> 00:31:23.519
your net income. You know, you're not going to want

467
00:31:23.519 --> 00:31:27.279
to be an es corp uh and take a salary

468
00:31:27.319 --> 00:31:29.680
because you're just not going to have the cash flow

469
00:31:29.839 --> 00:31:32.079
to be able to do that or the net income

470
00:31:32.559 --> 00:31:35.440
strong enough to be a reason to jump over to

471
00:31:35.440 --> 00:31:37.799
be an escort. Now, if you could be a partner,

472
00:31:38.160 --> 00:31:40.519
you could have a partnership and we can do different

473
00:31:40.519 --> 00:31:44.640
things with guaranteed payments and not have to be a salary.

474
00:31:44.640 --> 00:31:49.319
But basically guaranteed payments is your reasonable wages, but you

475
00:31:49.359 --> 00:31:54.680
can manipulate that to where you're at. James asked, what's

476
00:31:54.720 --> 00:31:59.960
the different definition of a virtual business? Virtual business basically

477
00:32:00.480 --> 00:32:05.200
has no location. Maybe you're running it out of your home,

478
00:32:05.480 --> 00:32:12.119
your apartment, so you're basically doing everything remote. You're doing

479
00:32:12.160 --> 00:32:18.319
everything virtually. You know, maybe you're running a website and

480
00:32:18.359 --> 00:32:21.640
that's your only location and you sell products out of there,

481
00:32:21.839 --> 00:32:26.000
even though you're maintaining inventory at your house. But it's

482
00:32:26.039 --> 00:32:30.200
not someplace everybody comes to pick up merchandise or gets

483
00:32:30.240 --> 00:32:37.039
services from you. So your business is completely virtual, completely online,

484
00:32:38.599 --> 00:32:42.960
so you're not running a store front, so there's no

485
00:32:43.039 --> 00:32:46.839
brick and mortar walls. We had a client a few

486
00:32:46.880 --> 00:32:51.279
years ago that came to us for taxes and tax

487
00:32:51.319 --> 00:32:55.400
out and his question to my staff was, you know,

488
00:32:55.519 --> 00:33:00.759
are you a brick and mortar place? And she was, well,

489
00:33:00.839 --> 00:33:04.640
I think there's some brick, but I'm not really sure.

490
00:33:05.880 --> 00:33:08.720
So it's kind of joke. Client's been a client of

491
00:33:08.759 --> 00:33:15.359
ours for over twenty plus years. Great client, and so

492
00:33:15.400 --> 00:33:18.960
we always laugh about that. You know, using somebody that's

493
00:33:19.039 --> 00:33:23.119
virtual sometimes is hard, especially sometimes in the tax business,

494
00:33:23.119 --> 00:33:26.000
but has become more of the norm. Yes, we have

495
00:33:26.759 --> 00:33:30.799
building here that we run our corporate headquarters out of.

496
00:33:31.200 --> 00:33:34.119
Some of the stuff we do is virtual in different

497
00:33:34.160 --> 00:33:38.920
locations because we don't need a storefront in every location

498
00:33:39.079 --> 00:33:41.559
that we work in or all around the country. We

499
00:33:41.640 --> 00:33:45.160
just need a facility that we can deal with the

500
00:33:45.240 --> 00:33:47.640
I R S when's needed. But as far as our

501
00:33:47.640 --> 00:33:54.920
clients go, we do everything via phone, via zoom, via ring,

502
00:33:55.480 --> 00:34:00.160
via text, via phone, you know, whatever we're doing, it's

503
00:34:00.200 --> 00:34:04.079
mostly virtual. Secure portals and everything else like that. So

504
00:34:05.200 --> 00:34:10.039
you know, we make business is simple and easy for

505
00:34:10.239 --> 00:34:14.079
people out there. But virtual can be part virtual, part

506
00:34:14.119 --> 00:34:17.960
brick and mortar. You know, it depends on the type

507
00:34:17.960 --> 00:34:20.719
of business that you're out there. Hey, we've got to

508
00:34:20.760 --> 00:34:22.199
take a quick break. We're going to go through some

509
00:34:22.239 --> 00:34:24.119
more of the steps of starting a business that the

510
00:34:24.360 --> 00:34:27.960
SBA has. I'll even give you the SBA website. We

511
00:34:28.079 --> 00:34:29.079
come back right after this.

512
00:34:30.679 --> 00:34:34.320
We have only scratched the surface of today's show. Please

513
00:34:34.360 --> 00:34:37.880
stand by as Barry Cheef Fowler will be right back with.

514
00:34:38.079 --> 00:34:43.239
Tax Talk for you. As an owner operator.

515
00:34:43.440 --> 00:34:46.280
You already spend too much time away from your family.

516
00:34:46.840 --> 00:34:50.840
Stop spending time doing paperwork. Go to Trucker tax tools

517
00:34:50.840 --> 00:34:55.559
dot com, a solution built specifically for truckers. Trucker tax

518
00:34:55.639 --> 00:35:02.000
tools dot Com makes your life run smoothly. Let's get

519
00:35:02.039 --> 00:35:05.039
back to tax Talk for you with more tax talk

520
00:35:05.599 --> 00:35:06.239
once again.

521
00:35:06.679 --> 00:35:11.480
Here's your host, Barry G. Fallum.

522
00:35:11.559 --> 00:35:14.920
Hey, welcome back. You know we talked about government shutdown

523
00:35:14.960 --> 00:35:19.400
and who's furloughed and what the IRS is doing now

524
00:35:20.320 --> 00:35:25.119
during the government shutdown. Hey, go find our podcasts where

525
00:35:25.159 --> 00:35:28.599
on iHeart, We're on Spotify, We're on all the national

526
00:35:29.000 --> 00:35:33.159
programs for hosted podcasts. Look us up at tax Talk

527
00:35:33.320 --> 00:35:37.360
for you, or you can just go to tax Talk

528
00:35:37.719 --> 00:35:40.639
the number four the letter you dot com. Again, that's

529
00:35:40.679 --> 00:35:45.239
tax Talk the number four letter you dot com. And

530
00:35:45.559 --> 00:35:48.280
you can follow us over there and you can see

531
00:35:48.760 --> 00:35:53.239
all of our podcasts that we've had, and you can

532
00:35:53.400 --> 00:35:56.639
listen to this one again and find out what's happening

533
00:35:56.639 --> 00:36:00.840
in the government. Or you can even listen to the

534
00:36:00.880 --> 00:36:03.920
part of Hey, starting your own business and the ten

535
00:36:03.960 --> 00:36:06.960
steps the SBA is talking about. Now you can find

536
00:36:07.000 --> 00:36:12.840
these ten steps as well at SBA dot gov Business Guide,

537
00:36:13.239 --> 00:36:16.800
and it's got your ten steps out there, such as

538
00:36:16.920 --> 00:36:21.519
conducting market research, riding your business plan, funding your business,

539
00:36:21.800 --> 00:36:26.880
picking your business location, remember location, location, location, choose a

540
00:36:27.000 --> 00:36:31.400
business structure and your business name. And after you've done that,

541
00:36:32.159 --> 00:36:35.000
now you've got to register your business. So you can

542
00:36:35.079 --> 00:36:38.280
register your business either with the Secretary of State's office

543
00:36:38.800 --> 00:36:44.440
or your local Assume Name Division of your county if

544
00:36:44.480 --> 00:36:47.400
you're just going to go with the DBA. And then

545
00:36:47.480 --> 00:36:50.159
once you register your business, you've decided, Hey, I'm going

546
00:36:50.239 --> 00:36:52.280
to be an LLC, I'm going to be a INC.

547
00:36:52.440 --> 00:36:56.519
I'm going to be s court, whatever it's going to

548
00:36:56.599 --> 00:37:01.320
be a partnership. You've got to get your federal and

549
00:37:01.400 --> 00:37:07.360
state tax ID numbers. Now, good news is IRS may

550
00:37:07.400 --> 00:37:10.280
be shut down, but as far as their website still works,

551
00:37:10.400 --> 00:37:13.760
you should still be able to get your Federal Employer

552
00:37:13.800 --> 00:37:18.320
Identification number by filing the SS four online. Now, if

553
00:37:18.320 --> 00:37:21.400
you fill it out manually and fax it in, I

554
00:37:21.519 --> 00:37:25.119
don't think anybody's working in that division of the IRS.

555
00:37:25.199 --> 00:37:29.880
It is not a critical meet. So you, as far

556
00:37:30.079 --> 00:37:33.960
as an individual goes or business goes, getting your Federal

557
00:37:34.039 --> 00:37:39.159
Employer Identification number, do file online. And then once you've

558
00:37:39.199 --> 00:37:42.400
got all that, you can apply for your licenses and permits.

559
00:37:42.960 --> 00:37:45.719
And once you've got your employer identification number, you can

560
00:37:45.840 --> 00:37:49.280
open up your business bank account. That was the ten

561
00:37:49.360 --> 00:37:54.000
steps the SBA has for opening up your business and

562
00:37:54.039 --> 00:37:55.440
starting a business.

563
00:37:55.719 --> 00:37:56.159
Hey, you got a.

564
00:37:56.199 --> 00:37:58.800
Question here from Kevin. What can you tell us about

565
00:37:58.840 --> 00:38:04.480
a DBA DBA doing business as it's you getting an

566
00:38:04.480 --> 00:38:10.400
assumed name for you as a sole proprietor. So Kevin's

567
00:38:10.760 --> 00:38:15.960
Plumbing Services, you went out and got an assume name

568
00:38:16.480 --> 00:38:20.239
to put that in there, or whatever your business may be.

569
00:38:21.719 --> 00:38:26.320
Now that files on Schedule C gives you no liability

570
00:38:26.360 --> 00:38:29.840
protections or anything else out there. Now, I'm not wanting

571
00:38:29.840 --> 00:38:32.280
to talk about liability protections because I'm not an attorney,

572
00:38:32.280 --> 00:38:35.400
never wanted to be an attorney. No charge legal fees. Yes,

573
00:38:35.519 --> 00:38:37.559
I say that quite a bit because we want to

574
00:38:37.559 --> 00:38:40.199
make sure that, Hey, we're protected. We're not lawyers, were

575
00:38:40.320 --> 00:38:42.880
old agents. We know more about taxes than anybody else

576
00:38:42.920 --> 00:38:45.639
in the world. So if you need questions about taxes,

577
00:38:45.760 --> 00:38:50.960
we can help you liability attorney. But you know that

578
00:38:51.119 --> 00:38:53.639
DBA files on Schedule CE. It's not going to change

579
00:38:53.719 --> 00:38:56.280
any other way. If you do decide you're going to

580
00:38:56.320 --> 00:39:03.280
form into a partnership either via LLC or Inc. Or Kevin.

581
00:39:03.320 --> 00:39:08.639
You're partnering with Casey Kevin and Casey Plumbing. You now

582
00:39:08.719 --> 00:39:12.320
have a partnership. You may file partnership papers as well.

583
00:39:12.360 --> 00:39:14.360
You could be a limited partnership. You can just be

584
00:39:14.400 --> 00:39:18.400
a general partnership and something a general partnership. You can

585
00:39:18.440 --> 00:39:23.880
file through your local Assumed Name department there in your county.

586
00:39:25.320 --> 00:39:28.559
But hey doesn't give you very many options. Now, if

587
00:39:28.559 --> 00:39:34.119
you're an LLC LLC limited liability company can file either

588
00:39:34.400 --> 00:39:40.559
as a schedule CE sole proprietor single member owner, or

589
00:39:40.599 --> 00:39:43.679
it can file as an escort, or you could take

590
00:39:43.719 --> 00:39:47.760
on a partner and file a partnership return, So you

591
00:39:47.880 --> 00:39:53.360
have various options if you file, become an LLC right

592
00:39:53.440 --> 00:39:55.840
up front. And I do recommend to a lot of

593
00:39:55.840 --> 00:39:57.880
people that, hey, if you're going to get into business

594
00:39:57.920 --> 00:40:00.840
and you think you're going to be successful, now, hey,

595
00:40:01.599 --> 00:40:05.639
remember back into this SBA thing. We were talking about

596
00:40:06.239 --> 00:40:09.039
writing your business plan. Well, that's planning for the future.

597
00:40:09.360 --> 00:40:12.400
What is your business going to do in the future.

598
00:40:13.280 --> 00:40:15.199
What kind of money are you planning to making. Well,

599
00:40:15.239 --> 00:40:17.440
once you've got that plan in place, it helps you

600
00:40:17.920 --> 00:40:21.639
to decide what type of entity you want to be.

601
00:40:21.880 --> 00:40:24.719
And if you're going into business, you're planning to be successful.

602
00:40:24.960 --> 00:40:27.599
You're not planning to lose money. Now, I do have

603
00:40:27.639 --> 00:40:31.000
some people who seem to be failures at everything they do,

604
00:40:31.119 --> 00:40:33.480
but I think they fail on purpose that they think

605
00:40:33.519 --> 00:40:35.559
it's better to have a tax right off. So do

606
00:40:35.599 --> 00:40:38.559
you think it's better to fail at a business to

607
00:40:38.639 --> 00:40:40.880
get the tax right off or to pay the tax?

608
00:40:42.519 --> 00:40:45.320
It's a good question. Now, we don't like paying taxes

609
00:40:45.679 --> 00:40:48.119
in any way, shape or form. But if you were

610
00:40:48.119 --> 00:40:51.719
to lose let's say ten thousand dollars and you're in

611
00:40:51.760 --> 00:40:55.480
a twenty five percent tax bracket. Guess what, you only

612
00:40:55.480 --> 00:40:58.239
save twenty five hundred dollars, you still lost seventy five

613
00:40:58.320 --> 00:41:01.199
hundred dollars. So did it really do you that much

614
00:41:01.239 --> 00:41:05.239
good to lose money in a business just to lose money? Now,

615
00:41:05.679 --> 00:41:09.199
don't enter business unless you plan on being successful. Don't

616
00:41:09.199 --> 00:41:12.000
go into business to lose money and get the right off.

617
00:41:12.400 --> 00:41:15.000
You know, some people enter real estate and get rental

618
00:41:15.000 --> 00:41:18.679
homes because they can get larger depreciation right offs. They're

619
00:41:18.719 --> 00:41:23.519
into the real estate our portion of business, and they're

620
00:41:23.559 --> 00:41:27.800
getting the excess write offs when they sell the property

621
00:41:27.840 --> 00:41:30.480
that hopefully they're going to be in a better situation,

622
00:41:30.760 --> 00:41:34.519
and then they'll have more tax because the basis of

623
00:41:34.599 --> 00:41:38.800
the property has been depleted. But that being the case,

624
00:41:39.440 --> 00:41:41.840
they could enter into a ten thirty one exchange, they

625
00:41:41.840 --> 00:41:47.000
could do various other things to mitigate those taxes to

626
00:41:47.159 --> 00:41:51.400
save themselves money on their investment in what they're able

627
00:41:51.440 --> 00:41:55.159
to do. So there are different investment vehicles, there are

628
00:41:55.159 --> 00:41:57.519
different ways of doing this. But I don't tell you

629
00:41:57.559 --> 00:42:00.880
to enter a business unless you plan, and you have

630
00:42:01.039 --> 00:42:06.360
a written plan. Plan to be one hundred percent successful

631
00:42:06.519 --> 00:42:10.480
in your business. Making money, not losing money is Losing

632
00:42:10.519 --> 00:42:14.239
money never benefits you in any way, shape or form,

633
00:42:14.400 --> 00:42:18.480
no matter what you think, no matter what people tell you. Your

634
00:42:18.039 --> 00:42:22.360
job is to produce income, pay more taxes, or find

635
00:42:22.400 --> 00:42:26.079
ways to invest and do other things in taxes. That's

636
00:42:26.119 --> 00:42:29.480
going to save you money. Boy, time flies when you're

637
00:42:29.480 --> 00:42:34.159
having fun and answering questions and you're talking to people

638
00:42:34.280 --> 00:42:37.280
that you find ways to help. And that's what we

639
00:42:37.360 --> 00:42:40.679
do here at tax Talk for you. Hey, if you're

640
00:42:40.679 --> 00:42:43.480
going to be in the trucking business, hey call Trucker

641
00:42:43.559 --> 00:42:48.400
tax Tools. Go to truckertax tools dot com. Look at

642
00:42:48.400 --> 00:42:51.679
the plans we've got bookkeeping taxes for you as truckers

643
00:42:51.679 --> 00:42:57.880
and small business owner operators. Taxation Solutions dot net saves

644
00:42:57.920 --> 00:43:02.840
people from the IRS and the money that they claim you. Oh,

645
00:43:03.000 --> 00:43:04.840
even if the I R S is wrong, you've got

646
00:43:04.920 --> 00:43:06.639
to fight the I R s to prove that you

647
00:43:06.719 --> 00:43:10.639
were right. And sometimes you need somebody on your side. Now,

648
00:43:10.840 --> 00:43:13.880
we don't take everybody. Not everybody's going to become a

649
00:43:13.920 --> 00:43:18.719
client of Taxation Solutions. We sit down and do it analysis.

650
00:43:18.760 --> 00:43:22.480
We'll tell you will our services benefit you, And here's why.

651
00:43:22.800 --> 00:43:25.639
If our services aren't going to be a big enough benefit,

652
00:43:25.880 --> 00:43:28.360
we're not going to take you on as a client

653
00:43:28.400 --> 00:43:30.639
to take your money. We're going to give you advice

654
00:43:30.760 --> 00:43:32.719
on what you need to do. Give us a call.

655
00:43:32.920 --> 00:43:35.320
If you're in debt with the I R S and

656
00:43:35.400 --> 00:43:39.840
the IRS is claiming you you owe them money, call

657
00:43:39.920 --> 00:43:43.840
us at eight eight eight nine three zero one zero

658
00:43:43.920 --> 00:43:46.880
one six Again eight eight eight nine three zero one

659
00:43:46.960 --> 00:43:49.599
zero one six. Let us step in front, let us

660
00:43:49.639 --> 00:43:53.119
solve the problem. Hey. Every week we're here at tax

661
00:43:53.159 --> 00:43:57.000
Talk for you, bringing you news, bringing you information, helping

662
00:43:57.079 --> 00:44:00.400
you to stay a breast the new tax law, new

663
00:44:00.440 --> 00:44:04.760
things that are going on and help you fight the fight,

664
00:44:04.960 --> 00:44:08.559
the good fight to save yourself from paying more in

665
00:44:08.679 --> 00:44:12.559
taxes than you need to from finding ways to reduce

666
00:44:12.599 --> 00:44:15.920
your taxes to the lowest amount allowed by law, finding

667
00:44:16.440 --> 00:44:20.039
and answering your questions to get you the best solution,

668
00:44:20.639 --> 00:44:26.840
whether it's taxes, tax problems, bookkeeping, uh, you name it,

669
00:44:27.320 --> 00:44:30.840
tax planning. We're here to do that. So tune in

670
00:44:31.000 --> 00:44:35.079
every Monday, ten am Eastern Time, right here at tax

671
00:44:35.159 --> 00:44:38.480
Talk the number four letter you dot com again, tax

672
00:44:38.559 --> 00:44:42.159
Talk for you dot com Mondays ten am on W

673
00:44:42.280 --> 00:44:47.119
four c UY Radio, W four c r Y dot com.

674
00:44:48.000 --> 00:44:51.239
Tune in, don't miss a show. But above all have

675
00:44:51.360 --> 00:44:56.840
a God blessed, glorious. We enjoy the beautiful times that

676
00:44:57.199 --> 00:45:00.800
we have, not just in this country, but are God

677
00:45:01.000 --> 00:45:05.280
provided such great country. Let us live in here, let

678
00:45:05.360 --> 00:45:08.119
us enjoy it, let us be happy. God bless you.

679
00:45:08.400 --> 00:45:11.079
We'll see you next week ten am Monday, right here

680
00:45:11.119 --> 00:45:14.639
at tax Talk for You dot com ten am Eastern Time.

681
00:45:14.679 --> 00:45:15.639
We'll see you next week.

682
00:45:16.639 --> 00:45:19.840
Are you an individual or business that wants to understand

683
00:45:19.880 --> 00:45:23.280
taxes and how they affect you? Are you looking for

684
00:45:23.320 --> 00:45:28.760
specific tax advice for self employed business owners and truckers.

685
00:45:29.320 --> 00:45:33.360
Are you behind on taxes and your bookkeeping? Are you

686
00:45:33.480 --> 00:45:36.440
dealing with the irs and ready to have some relief?

687
00:45:37.280 --> 00:45:41.079
Then you need Tax Talk for You, hosted by tax

688
00:45:41.159 --> 00:45:46.079
and trucker expert Barry g. Fouer Ea Tunyan ten am

689
00:45:46.320 --> 00:45:49.840
Eastern time, every Monday right here on W four cy

690
00:45:49.960 --> 00:45:53.320
Radio and Talk for TV. Don't forget to check this

691
00:45:53.519 --> 00:45:57.599
and past episodes at tax TALKFORU dot com.

692
00:45:57.760 --> 00:46:01.039
See you next week at W four Cynight dot com.

693
00:46:02.760 --> 00:46:03.039
MHM