Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.
Tax Compliance, The First Step to Recovery
Alternate title: Why Being Current is the Key to Resolving Your Back Taxes
This may sound strange but if you owe money to the IRS, it is more concerned - at least initially - with your current tax situation than your unpaid taxes. While that may sound backwards, the IRS' reasoning is solid: taxpayers who get current with their tax obligations are more likely to stay good taxpayers well into the future.
What does it mean to be current?
So what does being current (or tax compliant as I call it) mean? First, if you haven't file the current year's tax return than file it. Second, if you owe any taxes on the current return that you pay the amount due in full as soon as possible. Finally, and if you are self-employed this is very important, if you are required to make quarterly estimated tax payments that you do so.
What are estimated tax payments?
If you are not familiar with estimated tax payments, here is a quick rundown (and by no means complete). If you work for an employer than your employer is going to withhold from your wages an amount to cover your overall tax liability. Self-employed folks can't pay themselves a wage ... more
Are you on The Rain? Grow Your Network!