Why is the IRS so serious about you paying Estimated Taxes?
Most small business owners and self-employed professionals don’t understand how IRS estimated taxes work. If you are supposed to be paying estimated taxes, but aren’t doing so, the IRS really doesn’t like that. It will come back to hurt you. Get tips from 20-year tax attorney Jeff Fouts.
Have you ever wondered “Why is the IRS so serious about getting you to pay your estimated taxes?” I’ll tell you.
Hi, I’m Jeff Fouts, a tax attorney located in metro Atlanta, with a nationwide law practice helping clients who have serious IRS problems.
So, “Why is the IRS so tough on people who won’t pay their estimated taxes?”
As I’ve said before, most self-employed people don’t understand how estimated taxes work.
If you are supposed to be paying estimated taxes, but aren’t doing so, the IRS really doesn’t like that.
The IRS thinks you’re getting an advantage that other people aren’t getting. They’d say you’re getting to use the tax money, while other people who pay their estimated taxes on time, aren’t getting to keep and use.
Whether we agree with the IRS or not, they think you’re getting, what amounts to, a loan from the U.S. government.
But not paying the taxes on time comes at a heavy price since interest and penalties add up really quick.
When the IRS comes to collect against you they will do two things that will be very painful.
– they will require that you begin making estimated tax payment on income you are earning in the present, and
– they will require that you begin paying any unpaid past estimated taxes.
If you have your family or business’s budget such that you’re having to live on all the money that’s left over after business expenses are paid then you will be hurting greatly.
Because you’re suddenly going to have to live on less money than you were living on previously.
You must learn to budget your money so that you can both pay your current estimated taxes, and you can work out a solution for the past unpaid taxes, and live on what’s left over.
If you refuse to do this the IRS will take drastic collection action against you.
It is important that you analyze your situation carefully, and learn what all your possible solutions may be to deal with your IRS problem.
It is better to begin this task sooner rather than later, because if the IRS arrives on your door step tomorrow, you will then be under the gun.
I hope this important video tip has helped you understand more about the IRS and how tax problems are solved. Chances are you have questions or concerns about your own tax problem. I encourage you to pick up the phone and call me. I can answer your questions. Over the past 20 years I’ve represented clients in all 50 states and 29 foreign countries, and I welcome your call. You can reach me at (888) 995-6785 or by email at firstname.lastname@example.org. I’m Jeff Fouts and thanks so much for watching. Have a great day.
YouTube Link: http://www.youtube.com/watch?v=TbJMXIzIuyY