I represent companies and individuals in the St. Louis, surrounding areas and the state of Missouri who have IRS and State Tax problems that include unfiled tax returns and past-due taxes. In order to obtain a payment plan, there are two things that are mandatory with the IRS.
1. All Returns have to be filed.
2. Estimated tax payments must be paid during the year or the IRS isn't interested in talking to you. To this day I am perplexed as to why self-employed people don't seem to understand that they are expected to pay their taxes on a quarterly basis. There is this misconception that Americans believe they can file their tax return at the end of the year and just pay the taxes then.
That isn't how our tax system in this country works. Our tax system requires that taxes are to be paid to the government quarterly. Employers file and pay the taxes withheld from their employees quarterly using form 941 or I should say most do but that is a subject to be discussed at another time. Self-employed individuals are expected to file quarterly estimated tax payments with Form 1040-ES.
The quarterly deadlines for self-employed individuals are:
* April 15
* June 15
* September 15
* January 15.
In most cases you must pay estimated taxes if both of the following apply:
1. They expect to owe at least $1000.00 in tax, after subtracting their withholding and refundable credits.
2. They expect their withholding and refundable credits to be less than the smaller of:
90% of the tax to be shown on their current year's tax return, or
* 100 % of the tax shown on their prior year's tax return. If they earn more than $150000.00 a year, it is increased to 110% of the tax shown on the prior year's tax return.
Often I hear that for years, filed the return and sent a check. Never heard from the IRS. And they would be right as long as they can pay the tax due in full, plus penalty and interest. Once someone is in collection it's a all-new ball game. In order to work out an arrangement with the IRS to resolve back taxes, taxpayers have to prove to the IRS that they won't create a new liability, also known as pyramiding new taxes because they are now in compliance.
Making current payments is part of that process.
When you play you pay with the IRS. Your best defense is offense.
If you or someone you know are having IRS issues with past due taxes, auditors and under examination with the IRS, please don't hesitate to call me @636-397-2759, email me @steveshapiroea@gmail.com. Enrolled agents are federally licensed by the Treasury department and can represent taxpayers at all administrative levels of the IRS.
Steve Shapiro, EA
620 South Benton Street
St. Charles, MO 63301
636-397-2759
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