February 27, 2010

Shifting From Employee to Independent Contractor Results To Trouble With the Internal Revenue Service

It was in 2002 that I started my dream job. After years of putting in time at a job that was mediocre (but not what I had planned for my life), I finally had the chance to get up and go to work at a job that meant something to me and made me feel like I was doing some good. PreferredTaxRelief

The fabulous opportunity would mean changing my tax filing status from being an employee who receives a W-2 to becoming an independent contractor and receiving a 1099. I had never before been responsible for saving part of my income in order to make quarterly tax payments to the IRS. 

I was enjoying my new responsibilities - and also enjoying the “extra” income when I started the new job as an independent contractor Although this wasn’t really extra income. Since I did not have an employer withholding taxes for me, it was simply the portion of my pay that had not yet been taxed and it is up to me to pay it. 

But don’t get me wrong as a person who would rook the IRS or utilize money that does not belong to me Actually, I have always been a pricky record-keeper. 

I had every intention of meeting my tax obligations, but there was always something that came up that was more important than setting aside the money for quarterly tax payments. Each time, I told myself that I would begin stashing money for the tax payment next week. But “next week” turned into “next month,” or the following month, and I still had not reserved the needed cash. 

Before I knew it, it had been about five years since I had paid my taxes.  Not hearing a peep from the IRS quite a surprised me. I had assumed that, if something was truly wrong, they would have been beating a path to my door to make me live up to my obligations. 

When I decided to put my financial affairs in order, I learned that I was so far in debt to the government that I saw no possible mean to recover. The penalties and interest had been accruing, along with the late taxes, and the dollar amount that I owed was astronomical. 

I spent quite a bit of time going through my records and filing my late tax returns, and had hoped to resolve the problem on my own. However, it was just too much for me to handle. 

What would be left for me?  In order to pay this off, would I have to sell my house and vehicles? What if I made lots of sales and did a real good month? Would the IRS come and grab that money and leave me with nothing to really get ahead with? Tax Relief

My wife and I began surfing the Internet to learn as much as we could about the processes and procedures when the IRS goes after debtors. We wanted to be prepared, but it was so confusing because there are so many web sites out there. We were left confused and unsure whether we are facing legitimate ones or ones that might be steering us wrong in order to get more money from our misfortune. 

We chose several businesses that we found on the web and started making phone calls to get an idea of what we might do next. All we received was just a strange vibe from the first few places we called. We were not comfortable with them at all. But the third place that we called, Preferred Tax Relief, made us feel totally at ease. 

It was the start of our relationship with Preferred Tax Relief. Since these tax professionals made such a difference in our lives, we can’t imagine what we would have done without them. They responded to our queries promptly, courteously, and honestly. 

They came through us and we handed everything to Preferred Tax Relief. They were able to get the tax levy lifted and they negotiated a monthly installment program that fit into our budget with no problems. 

If you are encountering a similar situation, I strongly suggest Preferred Tax Relief. While the penalties and interest continue to grow, whatever you do, do not wait for another day. Without garnishing your paycheck or bank account, contact Preferred Tax Relief for you to be on your way toward fulfilling our obligations to the Internal Revenue Service. Tax Relief Advice

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