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Difficulty With the Internal Revenue Service Made By Shifting From Employee to Independent Contractor
By plrprousers | March 14, 2010
My dream job came along in 2002. 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 after years of putting time at a job that was mediocre but not I had planned for my life. PreferredTaxRelief
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 before been responsible for saving part of my income in order to make 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. But this wasn’t really extra income. It was simply the portion of my pay that had not yet been taxed and, since I did not have an employer withholding taxes for me, it was up to me to pay.
Don’t get me wrong, I’m not the type of person who would scam the IRS or spend money that does not belong to me. In fact, I have always been a meticulous record-keeper.
I had every intention of meeting my tax obligations, but there was always something that came up that was more important than setting aside the money for quarterly tax payments. Each time I tell my self that saving money for the tax payment would begin next week. Until the “next week” turned into “next month” or the following month and I had not reserved the needed cash.
Before I knew it, it had been about five years since I had paid my taxes. It is quite a surprise that 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.
I learned that I was so far in debt to the government that I saw no possible way to recover from it even if once I decided to get my financial affairs in order. 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. But this is 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 step in and take that money, leaving me without a way to ever really get ahead? Tax Relief
To learn about the processes and procedures when the IRS goes after debtors, my wife and I started surfing the Internet as much as we could. Wanting to be prepared but it was just too overwhelming with so many web sites out there. whether we are facing legitimate ones or ones that might be steering us wrong in order to get more money from our misfortune, we were left confused and unsure.
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. We just received a strange vibe from the first few places we called. We did not feel at ease with them at all. Finally with Preferred Tax Relief, the third place we called, made us feel totally at ease.
It was the start of our relationship with Preferred Tax Relief. We don’t know what we would have done without them, these tax professionals made such a difference in our lives. They gave us prompt, courteous, and honest answers to our queries.
We left everything up to Preferred Tax Relief and they came through for us. They were able to get the tax levy lifted and they negotiated a monthly installment program that fit into our budget with no problems.
If you are experiencing a similar situation, I highly recommend Preferred Tax Relief. Whatever you do, do not wait another day while the penalties and interest continue to grow. Without seeing your paycheck or bank account being garnished, give Preferred Tax Relief a call for you to be on your way toward fulfilling our obligations to the Internal Revenue Service. Tax Relief Advice
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