Shifting From Employee to Independent Contractor Leads To Trouble With the Internal Revenue Service
My dream job came along in 2002. After years of putting in time at a job that was mediocre (but not what I had planned for my life), I finally had the chance to get up and go to work at a job that meant something to me and made me feel like I was doing some good. Tax Relief
Changing my tax filing status from being an employee who receives a W-2 to becoming an independent contractor and receiving a 1099 comes along with the fabulous opportunity. I had never been responsible for saving part of my income when it comes to making quarterly tax payments to the IRS.
I started the new job as an independent contractor, enjoying my new responsibilities – and also enjoying the “extra income. Although this wasn’t really extra income. I did not have an employer withholding taxes for me, it was just the portion of my pay that had not yet been taxed and it is up to me to pay it.
But don’t get me wrong as a person who would rook the IRS or utilize money that does not belong to me In fact, I have always been a meticulous record-keeper.
There was always something that come up that was more important than setting aside the money for quarterly tax payments although I had every intention of making may tax obligation. Each time I tell my self that saving money for the tax payment would begin next week. Then, the “next week” turned into “next month” or the following month until I had not reserved the needed cash.
It was past five years that I had paid my taxes. Surprisingly, I had not heard a peep from the IRS. I had assumed that they would have been beating a path to my door to make me live up to my obligations if something was truly wrong.
When I decided to put my financial affairs in order, I learned that I was so far in debt to the government that I saw no possible mean to recover. The dollar amount that I owe was way too high already due to the penalties and interest that have been accruing, along with the late taxes.
Hoping to resolve the problem on my own, I spent quite a bit of time going through my records and filing my late tax returns. However, it was just too much for me to handle.
The final straw for me was when I found out that the IRS expected to be paid in full immediately, and if I was unable to pay, they would begin garnishing my pay and my bank accounts until my debt was satisfied. Would I have to sell my house and vehicles in order to pay this off? What if I had a really good month and made a lot of sales? Would the IRS come and grab that money and leave me with nothing to really get ahead with?
My wife and I began surfing the Internet to learn as much as we could about the processes and procedures when the IRS goes after debtors. We wanted to be prepared, but it was so confusing because there are so many web sites out there. We were left confused and unsure whether we are facing legitimate ones or ones that might be steering us wrong in order to get more money from our misfortune.
We started making phone calls to get an idea of what we might do next after choosing several businesses that we found on the web. The first few places that we called gave us a strange vibe. We were not comfortable with them at all. But the third place that we called, Preferred Tax Relief, made us feel totally at ease.
It was the start of our relationship with Preferred Tax Relief. Since these tax professionals made such a difference in our lives, we can’t imagine what we would have done without them. They gave us prompt, courteous, and honest answers to our queries.
They came through us and we handed everything to Preferred Tax Relief. They negotiated a monthly installment program that fit into our budget with no problems and they were able to get the tax levy lifted.
I highly recommend Preferred Tax Relief if you are experiencing a similar situation. Whatever you do, do not wait another day while the penalties and interest continue to grow. Give Preferred Tax Relief a call and you, too, could be on your way toward fulfilling your obligations to the Internal Revenue Service without seeing your paycheck or bank account garnished. Tax Relief
