Tax Law (Questions About Taxes)/Company Taxes


Hi there-

First off, thanks so much for taking the time to read this.
To spare you a really long story:

I am a 37 year old male who owns a very small finance consulting firm in NYC (and S-Corp).
I started in 2008, but only started earning any money in 2009.
Finance, as I am sure you know (and particularly form the servicing side) has been decimated.
I have earned maybe $250k in the past 4-5 years, which has barely kept me alive in NYC.

I have yet to pay a dime in taxes.

two reasons:

1) I simply have not mad eneough money to pay my bills and therefore refrained from paying them the first year, the bad times continued, and the cycle continued.
2) I was diagnosed with an Autoimmune disease in 2008 and I have spent a FORTUNE finding that out and dealing with it (as I had no health insurance for some time)
3) most importantly-two BIG deals that I closed over the past year and half fell through (one firm was shut down by FINRA, the other refuses to pay me dues to cash flow issues and I dont even have the money to sue them!) Its about 300k total...

I work out of my 400sf apt in Manhattan and only recently have become healthy and business is starting to pick up.


I do not have the 100 or so grand to pay the IRS (as this is what I am guessing I owe) and I am barely making my bills.

I simply do not know what to do here.

Do I call the IRS and just be honest with them and tell them my situation and try to work something out? Do they even care?

I would get a lawyer but I cannot afford one right now.

I am so worried about this that I am not sleeping at night and it is just making my health worse.

Any help/guidance you could provide would be most appreciated.

Thanks again.



Thanks for your question.

First, I would hazard a guess that you do not owe as much in taxes as you anticipate. IF the $250K is gross, then you likely have some business deductions against that income.  Of course, penalties and interest can mount up quickly.

The IRS can waive a penalty, but not interest, and it doesn't hurt to ask. They are much more willing to waive penalties if you come forward before they contact you.

Secondly, the medical bills are deductible if you itemize your deductions, so that might help.

Third, if there is a realistic possibility of collecting the amounts owed you, see if someone reputable will pursue it on a contingency basis.

Fourth, Go to the IRS. But before you go, have your ducks in a row.  Be able to show them your income by year, deductions against that income, and any personal deductions, etc that may be allowed.  Go with a plan in mind, not just "here I am, please have mercy on me."

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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