Tax Law (Questions About Taxes)/Corp tax
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.
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 AM TERRIFIED.
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.
Let me tell you how I would handle it if I were retained by you. The first step is to prepare the returns and get them filed. Once filed, it will take them a couple of months to be posted and come into collections. During that time, we would be doing an analysis of your finances to determine what the best approach is to resolving your case. That could include one of the following: Entering into an installment agreement to pay it over time; if you cannot make payments, having the account put in an uncollectible status until you are in a position to make payments or; if the amount is more than you can ever pay, making an Offer to settle it for less than you owe.
The cost of this is not as much as you may think. Typically returns cost between $125 to $250 each. The cost of dealing with the IRS can range between $500 to $2,000, depending on what the ultimate solution is. We do not charge huge retainers so the amount can be paid over time.
You can try to do this all yourself but it will be less stressful if you have someone who has done it more than a few times to walk you through it.