Such a screw up

I haven't been able to pay my 30% that's due in taxes every quarter or even every year. I got a letter from the IRS a few months ago saying that if I didn't file my 2004 and 2005 returns, they would consider taking legal action. I filed 2005 taxes and called about 2004. They asked if I could file them within 45 days. I said yes. The 45 days have come and gone and I haven't filed. I got two certified letter notices today from the IRS. The mailmain didn't knock loud enough for me to hear. I have to go to the post office to pick them up now. On Saturday, I got a letter saying they wanted $1000+ for part of the 2005 taxes that I couldn't pay when I filed. I'm in debt to the IRS to the tune of $15,000, closer to $20,000. I have no idea where I'm going to come up with the money. I'm on a $150 payment plan every month for my back taxes. That's all I can pay. Every penny that comes in goes right back out in bills and basic living expenses. I can't pay 5% in taxes, let alone 30%.

I can't believe I got myself so messed up in debt. Every time I try to lower my expenses by consolidating some bills or bundling services, they end up going up in price instead of down, despite being CONVINCED by customer service reps that they WILL be less. I switched my cable TV and Internet a couple of weeks ago because I was told repeatedly upon questioning that my bill would drop from $115 a month to $80. I got the bill today. It's still $115. I call the company. It turns out I was misinformed and that it would have only been $80 if I'd deleted some of my TV services, even though I asked several times "does this include my current TV service with no changes?"

I can't believe I'm such a f**k up. I don't have any money to give to the IRS. My mom had this problem one time when she owned her own business and the IRS went in to her bank account and completely wiped it clean to cover part of the amount due. I can't have that happen to me. I can't.

I'm so scared to read what these letters say. I know it's not going to be good since every other letter I've received has just been sent through the regular mail and not certified.

I'm starting to think stupid thoughts and I don't have anyone to call, no one to help me, no one to give me a loan even if I could afford another monthly bill. I just want to disappear.

(((((((((((((( wi_fighter )))))))))))))))

(((((((wi))))))) have you consulted with an attorney? Do you own your own business? Own your own home? I'd contact an attorney that handles tax issues. An initial visit should be a consult (and many consults are free-but ask to make sure). I see you are in tornado alley, so I am thinking you are in the midwest somewhere? Not sure what kind of things are out there to help you. If you own a home or business you maybe able to use that as collateral for a loan, or get an equity loan on your home???? I don't know.

Don't get all superfreaked out, my uncle had a similar problem some years back, and it got all worked out. I know it's terrifying to be dealing with the IRS... Is there legal aid in your area? Some attornies do pro-bono as well.

AND, you are not a screw up!!! Life happens, things roll out of control sometimes, and we hit bumps in the road. PLEASE, don't get despaired, where there is a will, there must be a way, it's just really hard when you are sitting plum in the middle of it all!!!!

Hope some of this helps you a little. Hugs, Lisa.

{{{{{{{{{{{{{{{wi}}}}}}}}}}}}}}}}} I don't know what I can say that will help. I've had my share of problems with the IRS, but never for that large an amount, and I've found that if you default on a payment plan, they're decent about starting you up a new one, if you tell them what you can pay. Maybe you can get them to lower your payment plan?

I certainly can't help with cash, but I would if I could.

Cable companies are evil, BTW, but you've discovered that now .

I'm sorry, sweetie. Let me know if you need to vent.

Love, Candy

I don't own my own house. I'm an independent contractor for a company in California, but as far as taxes are concerned, I might as well own my own business.

If I could afford an attorney, I could afford to pay some of my taxes.

Thanks Candy. I don't want to vent to you personally. You've got your own mess to deal with right now.

I feel like I don't even deserve to be in a relationship because of my financial problems. I feel like an absolute loser.

I have to type up a stat report and then run to the post office and pick up those letters.

Know why I didn't file 2004 taxes? Because I couldn't afford the $100 to download TurboTax for that year. I was going to do them after I did my 2005s, but when I saw I had to put another $100 on the credit card, I decided to wait. Waiting turned in to not doing it at all.

I can't stop crying. My daughter's here and my face is all wet and puffy and I feel guilty for crying because she has to see me and worry.

I'm so sick of being a mom right now. I just want to be alone and disappear from everyone.

(((wi)))) I'm sorry, you are having such a hard time with all this right now. I've never had to deal with the IRS that way, so I guess I can't be of much help. Have you googled for some help? Could claiming bankruptcy work for you? I don't even know if that is an avenue you would want to go.

Legal Aid here is a program run to help people that cannot afford to hire an attorney. I also know we have a program in MA that you can call in or meet with an attorney once of twice a month (I forget what that is exactly). I'd call whatever you can out in your area-they might not be able to help you, but they maybe able to direct you to help.

Also, how about woman's groups? I know here our state is always pushing to help women in business out? You never know what you may find by just poking your nose somewhere.

Hugs, Lisa

Bankruptcy can't wipe out taxes. I'd still owe.

The letters said I defaulted on my installment agreement by not filing 2004s in time, so they want $10,294 for 2003 and 2005 within 30 days (plus I'm guessing what I owe for 2004), unless I request Appeals consideration, which I did. I have to file my 2004s by August 31 and then they'll reinstate my installment agreement. If I don't file by then, I have to come up with the entire amount or they'll start investigating my assets - meaning they'd wipe out my bank account like they did to my mom.

So I have until next Thursday to get this taken care of. I still have no idea how I'm going to pay to get them prepared. I've tried finding a used 2004 edition of Turbo Tax with no luck.

I want to tell my boyfriend to run far, far away and don't look back. I'm a financial nightmare. Every time I try to get ahead on debt, something derails my efforts. I'm so tired of this, not having even a speck of light at the end of the tunnel, just a neverending tunnel of debt that keeps getting longer and longer.

Sweetie, your self-worth has nothing to do with your financial problems. I know you feel like it does, though. I had to file bankruptcy last year to wipe out my medical debts -- that was before I racked up hundreds of thousands of dollars more -- and it was SOOOO humiliating, for a while. But financial problems even happen to the big boys. Even Donald Trump has filed for bankruptcy!

You're right in that it won't wipe out taxes, though.

I'm willing to bet your bf couldn't care less that you're a financial disaster. It's harder and harder not to be one these days. He probably has troubles of his own. And what's the point of a relationship if you can't share your troubles, you know? I know he cares about you, and he doesn't sound shallow enough to run away just for something like this. Take your time, but I'd encourage you to reach out.

And it's OK to vent to me personally. I have my own crap, yes, but I get tired of thinking about it -- and as several people here will tell you, I'm better at solving other people's problems than I am my own .

Love, Candy

Is there anywhere you can go for advice. Here in the UK we have free financila advice for people. We have citizens advice and lots of other bodies who can help. Maybe if you can go see someone and lay it all on the table they might be able to help, or at least set you off in the right direction.

I hope this gets sorted in some way.

Audrey, there's very little we get here in the US for free. It totally sucks.

What's worse is that I only have nine days to get this taken care of. It's not like I have a ton of time to investigate agencies to help me out and still manage to get work taken care of and take care of a family and pets and a household.

If someone wants to do the legwork for me and then simply have to tell me where to go and who to talk to, go for it.

I have the 2004 version of TurboTax, I'd be happy to try and work something out with you.

(((((((((((( WI ))))))))))))))

Maybe when you talk to them they'll accept the $150 you're already paying and just extend the time to include 2004's taxes. Mistakes happen, but it doesn't mean you're a bad person at all.

Hugs,

Jan

Erin, I'd take you up on the offer, but I don't know if it'd get here in time to be able to use it. It's worth a shot though.

I know I'm not a bad person Jan. I'm just so frustrated that I've let my finances get so out of control since my divorce, and now I'm at a point where going back to employee status and getting a tax break won't pay well enough to cover all of my expenses. I'd run out of money before I bought any groceries or put any gas in the car in order to get to work.

(( WI F ))) I am sorry youre in such pain, I would be too in your spot. It sounds scary

(((((((((((((((( WI )))))))))))))))))))

I just read what you wrote and I wanted to let you know that I'm very sorry. I am dealing with a bit of credit card debt and a very low income, and words can't describe the feelings of helplessness and despair that it brings. The point of this isn't for me to bring up my own problems, but to let you know that you're not the only one. Thousands and thousands of people are in serious debt. We still love them. We're glad that you're alive and healthy.

take care,
coffeedude

Thanks PDD.

I've got some people helping me out with searches and software. That's a huge help. Thanks Candy and Erin.

I just talked to my boyfriend and told him how I was feeling that he should just get away from me because I'm such a financial mess. He said it's no biggie. Phew! We're both having bad days today. I wish I could be over there, but his work day isn't finished yet and mine isn't either. I'm working on making up the time I spent away from work while sitting on hold with the IRS, the phone company, and the cable company, and he got called to pick up a little boy and get him to a foster home tonight.
I just want a real hug right about now.

I wish your guy (like the sound of that ?) could come real hug you but it sounds like he gave you a verbal hug in what he said. I am glad someone can help you out I would be in a panic. I KNOW for a fact they have to leave you enough to live on. I had a friend not file and he didn't have to pay for years because he had just enough for food, rent and a bike to get to work. But when he got settled they made arrangements with him and ended up waiving over 10k.

Yes, this sounds like a mess. No, it has nothing to do with your worth as a person.

I suggest you contact one of the free credit counselors in your area. It's tough to realize that you are in business for yourself and yet failed to factor in taxes everyone must pay. I think you need someone to show you where to cut costs. You must file the paperwork each year, or quarterly as you mentioned, even if you do not have the money to pay. You incur an additional penalty for not filing the paperwork alone.

Each person makes their own choices, but for instance, I don't have cable tv and I haven't gone to DSL because that would cost me $75 a month more. I eliminated my long distance service on my home phone and reduced my bill by $30 a month. There are more ways to save... a credit counselor can not only help you with that, but also with how to pay all your bills including the taxes. Also, it will help you fare better with the IRS if they see you are now attending to your financial problems, rather than dismissing their concerns. TC!

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