[highsider]

So, I just got my taxes back from my accountant.

A large part of my income comes from rental properties owned as a company by my family; I own a percentage, and they just send me distributions quarterly. (Yay!)

Over the last few years, they have been renovating the buildings. Thus, they are all pretty much like new now, so we ca no longer take depreciations.

My accountant did not know this, and did not plan on it; to make a long story short, I now owe the Feds and State a combined total of $18,000, of which I have about half. My accountant refused to try to work out any sort of payment plan with the government; basically, he said cough up the money or get a different accountant.

Anybody know of any good tax ecperts I can call on? I just want to see how big of a deal it is to push these payments out over the next year or so....

[dhuze]

You can contact the IRS and set up a payment plan

try this link

[ChrisNoF4i]

Your accountant sounds like a dumb-dumb.

Forget the fact that his depreciation explanation makes no sense.
If you owe the money, you owe the money. But if you don't have the money, how can you give it to the government? You absolutely don't have to pay it all at once. You can set up a payment plan with the IRS (I know nothing about Vermont). You will, of course, be subject to interest. The important thing is to file your return on time, even if you don't have the money.

[highsider]

Originally posted by ChrisNoF4i
Your accountant sounds like a dumb-dumb.

Forget the fact that his depreciation explanation makes no sense.
If you owe the money, you owe the money. But if you don't have the money, how can you give it to the government? You absolutely don't have to pay it all at once. You can set up a payment plan with the IRS (I know nothing about Vermont). You will, of course, be subject to interest. The important thing is to file your return on time, even if you don't have the money.

I think you're right, he is an ass.

I'm probably not explaining his depreciation story properly, as I think he is correct in that regard.

I'm thinking I might get in touch with a tax lawyer here in VT just to look over what he has done.

But he made it sound like the world would end if I didn't cough up the entire amount at once. This is frightening, given that (a) he told me I would owe anything, so I never made any estimated quarterly tax payments last year and (b) my wife is pregnant, and the last thing I want to do is end up being in debt with a newborn baby on the way.

Thanks for the advice, both of you - I owe you both

[bigred875]

he is probably just trying to save you interest and penaltizes....

[RandyO]

A couple years ago, I ended up owing more than I could cough up

I just sent them what i could, and a note that I could pay so much on a certain day of the month, and for the next year, Iwould get a bill from them once a month, after the year, it was all paid off, no negotions, nothing, I just told them what I could afford to pay.... there was no penalties, only interest

[HBerry]

I am sort of in the same situation, I owe more than I can afford this year. My father talked to an auditor at the IRS and he said do what ever you can to aviod using the IRS as a bank. You will end up paying around 13% interest on the amount you owe, and they will watch you like a hawk for the rest of your life.

Talk to another accountant/lawyer to make sure yours is right, then talk to the bank about a loan.

[highsider]

Originally posted by HBerry
I am sort of in the same situation, I owe more than I can afford this year. My father talked to an auditor at the IRS and he said do what ever you can to aviod using the IRS as a bank. You will end up paying around 13% interest on the amount you owe, and they will watch you like a hawk for the rest of your life.

Talk to another accountant/lawyer to make sure yours is right, then talk to the bank about a loan.

I would agree with the idea of not using the IRS as a bank; however, I think I would prefer that to having $18,000 on a credit card.

Also, I would question the assumption that they will "watch you like a hawk for the rest of your life". I doubt they have the manpower or the interest in doing such a thing; also, I wonder why they would care as long as you file you return on time and pay all applicable penalties and interest.

Fuckin government. They're just going to waste the money anyway.

[HBerry]

Originally posted by highsider
I would agree with the idea of not using the IRS as a bank; however, I think I would prefer that to having $18,000 on a credit card.

Also, I would question the assumption that they will "watch you like a hawk for the rest of your life". I doubt they have the manpower or the interest in doing such a thing; also, I wonder why they would care as long as you file you return on time and pay all applicable penalties and interest.

Fuckin government. They're just going to waste the money anyway.

Just what I was told about being watched. I would imagine something like a flag on your "account" that says watch this person closely or something like that ? But that is just a guess.

[beet]

Originally posted by RandyO
A couple years ago, I ended up owing more than I could cough up

I just sent them what i could, and a note that I could pay so much on a certain day of the month, and for the next year, Iwould get a bill from them once a month, after the year, it was all paid off, no negotions, nothing, I just told them what I could afford to pay.... there was no penalties, only interest

[highsider]

Ok, so I went and saw my tax lawyer, here in town.

Long story short, I'm f'ed.

I could probably stretch the money out a while, but the penalties and interest make it worthwhile to suck it up and make some credit card companies rich.

Anyone want to buy a Triumph?

[dhuze]

My last "late" payments to the IRS had an 11% total for penalties and interest. So if your credit cards are higher then use the IRS. You could also put it on a card then transfer it to a card that gives you zero % for about a year. The only problem with transfering money from 1 card to another is it does effect your credit score a little. , but if your going to pay it off after a transfer it can be a great way to save interest. Especially if you have no plans for a new loan in the near future.

[smoothwaterman]

For the 9k you don't have, check rates for personal loans at a credit union or bank. Use the bike as collateral, or other items. Look at home equity loan if you don't have one currently. And last, borrow from the family that owns these cash cows.

.015 cents

[Stoneman]

Originally posted by dhuze
...The only problem with transfering money from 1 card to another is it does effect your credit score a little...

Yeah, off topic, but...

I've heard this over & over. Yet I do it all the time and it's never been questioned. Granted, I carry a very low balance. My last reported credit check/score made no mention of transfers...