I owe back taxes that have ballooned from $7k to $97k over the past few years. I have no idea how I'm going to get out of this debt.

[newbieshore]

Hello everyone,

I got into business without knowing much about taxes or business management. I did really well initially, but the business started to slow down as the market became saturated. I had a great year in 2018, but I neglected to file taxes for several years, and now the IRS has caught up with me. They sent me a letter a couple of weeks ago, and I need to get everything ready to file taxes for the years I missed, from 2017 until now.

Why didn’t I file? My goal was to first start generating money like I used to (which still hasn't happened) so I could afford to breathe and pay them around $500 a month. It has been incredibly hard to catch up; it has crippled me in every way possible—depression, anxiety, you name it. I can't think straight.

I'm now ready to start inputting everything into QuickBooks to get it ready for the IRS so they can file. My question is, how can I make this debt any less, especially the one from 2016 that was $7k and has now turned into $97k? Is there any way to get this removed?

Can the IRS help me lower this debt? I don’t know what’s going to happen. I am so lost and depressed, to be honest. Sometimes I forget about it, but other times I feel like I'll never get out of this. I have a daughter and wife to support, and I don't share much of my stress with them. My wife knows and says she's willing to help me with all the paperwork and QuickBooks stuff.

Please, any advice would be helpful I used to go to alcohol often to forget this, I dont drink anymore it makes my thoughts worse

 

[clemens]

What country are you in ?

 

[aniglo22]

You could apply for the Currently Not Collectible , so they pause collection activities . And also you could try to apply for the Offer in Compromise program . Otherwise you could try to arrange pay in installments , depending on the situation they could lower the tax burden .
I hope you learned from your mistakes.

 

[scooterguy]

How can $7k turn into $97k? Penalties and interest have a limit.

 

[wellington]

8% interest is the usual annual interest rate the US lays at a federal level - mainly because they debase at 8% per year

 

[daniels27]

What country are you in ?

Seems US.

How can $7k turn into $97k? Penalties and interest have a limit.

I guess just more years that he failed to pay.

I would recommend checking if you are eligible for a tax relief. Otherwise, as you have not yet filed, you may be able to increase business expenses and lower your taxes this way. You can get a website for $20000 etc. Of course, you will need an invoice from 2018 etc. but this is all doable.

 

[jafo]

Hello everyone,

I got into business without knowing much about taxes or business management. I did really well initially, but the business started to slow down as the market became saturated. I had a great year in 2018, but I neglected to file taxes for several years, and now the IRS has caught up with me. They sent me a letter a couple of weeks ago, and I need to get everything ready to file taxes for the years I missed, from 2017 until now.

Why didn’t I file? My goal was to first start generating money like I used to (which still hasn't happened) so I could afford to breathe and pay them around $500 a month. It has been incredibly hard to catch up; it has crippled me in every way possible—depression, anxiety, you name it. I can't think straight.

I'm now ready to start inputting everything into QuickBooks to get it ready for the IRS so they can file. My question is, how can I make this debt any less, especially the one from 2016 that was $7k and has now turned into $97k? Is there any way to get this removed?

Can the IRS help me lower this debt? I don’t know what’s going to happen. I am so lost and depressed, to be honest. Sometimes I forget about it, but other times I feel like I'll never get out of this. I have a daughter and wife to support, and I don't share much of my stress with them. My wife knows and says she's willing to help me with all the paperwork and QuickBooks stuff.

Please, any advice would be helpful I used to go to alcohol often to forget this, I dont drink anymore it makes my thoughts worse

Is there anything physical they can seize?

 

[JohnnyDoe]

Talk with Our Team - Tax Lawyer Miami FL

 

[diatessaron]

First, do what Johnny suggested. Reading your post made me think you're trying to figure it out yourself, big mistake.

Second, bankruptcy can clear specific tax debts.

Third, if you follow advice number one you will end up with a monthly payment.

 

[daniels27]

First, do what Johnny suggested. Reading your post made me think you're trying to figure it out yourself, big mistake.

And remember, the advice can only be as good as you show them the whoe picture.

 

[Matade]

Hello everyone,

I got into business without knowing much about taxes or business management. I did really well initially, but the business started to slow down as the market became saturated. I had a great year in 2018, but I neglected to file taxes for several years, and now the IRS has caught up with me. They sent me a letter a couple of weeks ago, and I need to get everything ready to file taxes for the years I missed, from 2017 until now.

Why didn’t I file? My goal was to first start generating money like I used to (which still hasn't happened) so I could afford to breathe and pay them around $500 a month. It has been incredibly hard to catch up; it has crippled me in every way possible—depression, anxiety, you name it. I can't think straight.

I'm now ready to start inputting everything into QuickBooks to get it ready for the IRS so they can file. My question is, how can I make this debt any less, especially the one from 2016 that was $7k and has now turned into $97k? Is there any way to get this removed?

Can the IRS help me lower this debt? I don’t know what’s going to happen. I am so lost and depressed, to be honest. Sometimes I forget about it, but other times I feel like I'll never get out of this. I have a daughter and wife to support, and I don't share much of my stress with them. My wife knows and says she's willing to help me with all the paperwork and QuickBooks stuff.

Please, any advice would be helpful I used to go to alcohol often to forget this, I dont drink anymore it makes my thoughts worse

Declare bankruptcy.