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What To Do When You Can’t Pay Your Taxes

Sunday, March 2, 2014 - 5:49 PM
“I think the main reason that people fall behind in filing their taxes is that they are feeling afraid,” notes Robert Seltzer, a Los Angeles-based Certified Public Accountant (CPA) and tax specialist. “This fear is based on their not being able to pay the balance. Otherwise, people are flakey and disorganized and not filing their returns on a timely basis is a symptom of that.”
ShorebreakShorebreak2,696 posts since
Apr 6, 2010
Rep Points: 14,620
1. Monday, March 3, 2014 - 10:18 AM
I have a friend whose son many years ago had married a singer. She had just graduated and sang at the Fox theatre, for Don Henley, Bob Seiger, and was the main singer in the Detroit Thanksgiving Parade etc. She did not know what independent contractor was. She should not have been classified as that because she worked through one company and had no control of when and where she would work. Taxes had never been taken out and when her son went to do the taxes and got the paperwork together he was taken aback. They owed a lot of money. He called IRS told them what happened and because they had been married only 3 months they did not have the money and asked for a solution. They were able to actually go to Japan and were paid very well and was able to pay off $60,000 in taxes in less than a year. They did not pay an excessive amount of fines and interest she said. Maybe it was because her son called IRS. The company was also fined and had to reclassify all of their employees. 
Ally6770Ally6770942 posts since
Jan 16, 2010
Rep Points: 2,741
2. Monday, March 3, 2014 - 5:14 PM
#1  I think in the US we are programmed to be more afraid of the IRS than we need to be.  Your friend's story about the singer shows this.  The IRS was probably so glad the singer was willing to try to find a solution and repay what was owed.  Independent contractors are responsible for paying their own taxes and the IRS knew the company was really to blame for the singer's predicament and they should have taken out the taxes.  I am glad things worked out for the singer.  Her IRS problem ended up helping the other company employees not ending up in her predicament with the IRS due to the necessary changes. 
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,152