Trouble With the Internal Revenue Service Brought By Shifting From Employee to Independent Contractor

Posted by | Posted in Trading Software | Posted on 09-03-2010

I started with my dream job in 2002 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. Tax Relief

Changing my tax filing status from being an employee who receives a W-2 to becoming an independent contractor and receiving a 1099 comes along with the fabulous opportunity. When it comes to making quarterly tax payments to the IRS, I had never been responsible for saving part of my income.

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

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 prickly 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. Then, the “next week” turned into “next month” or the following month until I had not reserved the needed cash.

It was past five years that I had paid my taxes. It is quite a surprise that I had not heard a peep from the IRS. I had presumed that they would have been hunting a path to my door to make me face my obligations if something was truly wrong.

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. But this is 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 had a really good month and made a lot of sales? Would the IRS step in and take that money, leaving me without a way to ever really get ahead?

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. Although we wanted to be prepared, it was just so confusing with 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 did not feel at ease 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 gave us prompt, courteous, and honest answers to our queries.

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. Whatever you do, do not wait another day while the penalties and interest continue to grow. Give Preferred Tax Relief a call and you, too, could be on your way toward fulfilling your obligations to the Internal Revenue Service without seeing your paycheck or bank account garnished. Tax Relief

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