Thursday, May 21, 2015

Don't get whacked by the mafia-cartel tactics of the IRS

A warning to me from myself in the future.
Do not skimp on bookkeepers- do not allow a friend to do your books, do not under any circumstance, allow the bookkeepers to work for you without supervision and accountability.
Not ever, ever, for any reason, lapse of judgement, simply being overwhelmed in running a business or in your personal life, not having enough time or anything.

And not to drive this point into the ground, do not trust people of your own faith, a girlfriend, someone who appears to know what they're doing, or even someone who has come with recommendations. Vet everyone. Always.

Always, always check and double check their work. If you don't quite get it, get another bookkeeper or accountant to check their work. Even the discount tax services will raise some flags. Listen to them, brother. Pay attention because years from now, when the crap hits the proverbial fan, it will be too late.

No amount of stalling, pleading or guilt is going to have any effect, but you will become a stronger man, able to deal with daily adversity, because the only other option, to be defeated and a broken man, is not acceptable.

The IRS will do everything possible to bust you:
They'll put a lien on your home and property so you can't sell either without giving them all the money due. They will levy your business and personal bank accounts. Regularly. They will force you into a double whammy: Filing for bankruptcy protection, which does not absolve you of your obligations to the IRS, and causes many of your vendor accounts and open credit accounts to close, forcing you into a smaller and smaller point of profitability- a point where your income will not likely exceed your expenses.

Closed accounts means paying cash for everything, getting loans you hope to repay from family or friends, just to pay for what you already owe, and basically doing without.

After filing an offer (OIC) in compromise in good faith and with high hopes, a series of letters 45 days apart informing you that your case is under review (keep paying the monthly amount), a year or so passes and the OIC is rejected. Why> Because it is out of date. Duh.
You update and file a new OIC with the going-over by an accountant specializing in OICs, and the same stuff happens- and ultimately gets rejected. Why? Because the money you paid as estimated tax for the following year, something without which the IRS will reject an OIC, was usurped by the IRS towards delinquent taxes. They essentially stole the money you paid in good faith, and claimed that you didn't pay it. Also, the value of your house has gone up. Now it's become attractive for them to want to sell it at a loss to claim some of the proceeds towards the bullshit amount they claim you still owe.

So here you are today, now working with a low-income tax assistance program at the local university, and basically being told that you need to file a "currently not collectible" status. So... in a year or two, they'll be back at your door.


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