I owe $38K in income taxes! Help gay tax person!

Op, you’re on the right track. Fetish themed sex work is a great idea to earn extra income to pay off the 38k you owe. Keep us posted.

How does this happen to someone OR how does someone allow this to happen to them?

Even if you file for an extension, you usually have to pay an estimated tax to avoid penalties - which on $38K would be hefty.

Call for

Tax Troll

I haven't seen him around, but he might still be.

Humble Bragger.

R2 Ignorance and lack of planning, duh.

I’m playing June’s Journey.

[quote]How does this happen to someone OR how does someone allow this to happen to them?

This was a very common problem in the early 2000s when people were exercising employee stock options. It's also often a problem when people sell homes or in some cases when you inherit certain types of assets.

People who get divorced or are self-employed or start businesses often don't take tax consequences into account.

Let's not just assume OP was a fool and didn't withhold sufficiently on W2 income.

R8 Nope, I was the kind of fool who didn't save enough after the sales of two rentals because I thought I was going to offset those gains by losses elsewhere. Boo-hoo, right?

You need an accountant obviously. If you don't have it in cash can you borrow it from a credit union? or take it out of your retirement funds?

[quote]This was a very common problem in the early 2000s when people were exercising employee stock options. It's also often a problem when people sell homes or in some cases when you inherit certain types of assets.

Indeed, twice. Back when I sold employee stock options, I was paid taxes quarterly, $25K every three months.

This time, I was didn't prepare properly and had to use savings for flood stuff.

This is very poor planning. Only two things certain in life are death and taxes. Should know if you are going to have to pay taxes on income, either pay the tax immediately or set aside some money before you spend it all.

So true and under the circumstances, R12, so irrelevant.

You can setup a short term (180 days or less) or a long term payment plan with the IRS.

Find a CPA today who may be able to help you minimize and work out a payment plan with the IRS.

Just start a GoFundMe, everybody does it, also say you have cancer too, that will get the dough rolling in.

[quote]I don't want to have to sell assets to pay this off,

Tough shit.

[quote]but I don't want to pay interest,

Too fucking bad.

I recall a publication that will have the answers you need, it’s called ‘’The art of the deal’’

It's time like this I'm glad my tax just gets taken off my salary each month. If it's wrong, it's HMRC's fault, not mine.

They're going to put a lien on your mussy -- your only remaining (semi-) valuable ASSet.

Seppuku.

More info here, especially if you are considering going to a tax relief company. In short, don’t.

The people who work at the IRS are not the ogres they are made out to be by tax dodging/tax evading deadbeats like Donald Trump and other Republicans hellbent on destroying the IRS so they don't have to pay taxes on their ill gotten gains (or any gotten gains, for that matter).

What I've learned with dealing with the IRS for 30+ years is to remain in contact with them AT ALL TIMES. If you agree to a payment plan, stick to it. If you can't make an installment, CALL THEM IMMEDIATELY.

The absolute worst thing you can do to the IRS is go silent on them by not responding to their letters or other communications. Once the taxpayer breaks the lines of communication, the IRS starts reaching into their dirty bag o tricks in order to get your attention once again.

The high GIC rates were a siren call to many, but you've got to pay the taxes on all that interest, whether you've actually received the interest yet or not.

r23, here on Datalounge I read about a tax deadbeat who fled to Europe and is swanning around without a care in the world. The IRS has limited resources and they cannot go after everybody who owes them money.

[quote]I was the kind of fool who didn't save enough after the sales of two rentals because I thought I was going to offset those gains by losses elsewhere.

Before I tell you how to get out of this by the hair of your chinny, chin chin, hat did you spend it on?

R26 I invested most of the profit from the rental sales in two CDs, but spent the rest of the proceeds, that I had set aside for taxes on weed and vintage computers and electronics.

I second r14.

Call the IRS, explain the problem. Tell them you want to set up a payment plan. Tell them how much you will pay every month and DO IT.

People do this all of the time and it works if you STICK TO IT. Not only will it reduce your penalty and interest, but it will help you rest easier knowing you dealt with it.

Also, you have several years to file an amended tax return.

Find a competent CPA. They can set up a payment plan that you’ll need to agree to via the irs site. I owed one year and they did it so the IRS took $250/mo out of my bank account and I just arranged so the next year I would get a refund for the remainder amount by paying more via the W-4 form through my employer and I also upped to max out my pretax deductions to 401k that reduces your gross income.

Get a loan and use the CDs as collateral.

That is a LOT of ass to sell in very little time!

I’d get some PreP and a bottle of Numzit.

I've filed an online payment agreement with the IRS to pay the amount owed within 90 days.

I'm going to use that time to find a local CPA to review my budget and recent tax forms.

Hopefully that window gives my wealth management guys some time to do some tax loss harvesting and other appropriate sales.

Good for you, OP!

You took a big step to give yourself some peace of mind!

[quote] If it's wrong, it's HMRC's fault, not mine.

Huh?

Taxes are for little people. 💅🏼

I did the short free tax form from one of the IRS endorsed sites. I got 700.00 back. Meanwhile TurboTax was bugging me and saying 3000.00+ if I did theirs. Last year I did and the IRS stepped in and cut it 2/3rds. TT is such a rip off, and now you pay them.

During a very shameful period I didn't file, huge mistake. I was self employed and things took a downturn and I was overwhelmed. I finally made a call to the IRS, was very honest, and started the process of filing several returns. I worked out a payment plan and resolved the whole issue. Today I'm retired, debit free, mortgage free, and pretty comfortable, but far from wealthy. I found the IRS to be pretty easy to work with, just make the call.

Everyone thinks accountants and CPAs are tax preparers. Most often they are not and although some might be familiar with filing taxes, I doubt they're the best at it.

What you want is a tax preparer who is an EA- Enrolled Agent, someone licensed to represent you in front of the IRS.

Inheritances are not taxable under 11 millions dollars, although the sale of inherited assets like a house are taxable only upon their sale. An inherited IRA or 401k do generate a tax liability as the funds are withdrawn because the saver got a tax break putting the funds in, so someone has to pay the taxes when the funds come out.

[quote]Inheritances are not taxable under 11 millions dollars, although the sale of inherited assets like a house are taxable only upon their sale

Inheritances (and gifts) are not taxable to the recipient. That number you cited is for the estate and gift tax lifetime exclusion (and it's higher than that now.) And it's imposed on the estate (for estate taxes) and the donor (for gift taxes) -- NOT the recipient.

If you inherit something like a house, you get a stepped-up basis to the fair market value as of the owner's death. So if you sell it shortly after you received it (meaning the value has not increased), there will be no taxable gain.

OP, Sammy Davis Jr. had this problem, too. You're in good company!

I have owed the IRS (though not $38K, it was more along $9K), and they were actually pretty easy to work with/set up a payment plan.

You still pay interest though.

This whole thread and r38 have given me hope. I'm starting to get the certified letters in the mail, now and it's definitely become overwhelming. Especially while trying to build a business, also. I tend to get avoidant, in general, with any problem when I'm overwhelmed. I've learned very quickly, though, that unlike a partner, friend, or family member, the IRS will [bold]not[/bold] be ignored, Dan.

OP, OnlyFans beckons...