Back taxes minimization

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Subject Author Date Back taxes minimization Chip 10-23-2009  Re: Back taxes minimization DF2 10-24-2009  Re: Back taxes minimization removeps-groups@yahoo.com 10-24-2009  Re: Back taxes minimization Alan 10-24-2009  Re: Back taxes minimization Mark Rigotti 10-27-2009
Posted by Chip on October 23, 2009, 9:08 pm Please log in for more thread options Without going into the gory details, I owe back taxes from 2006. Obviously I owe them the actual taxes, interest and penalty. No crime, just a combo of procrastination and confusion on how to file a employee stock sale. What's the best way to minimize the overall $$$$? Admit I was stupid, and ask for their mercy, hire a lawyer, or one of those firms on late night TV that claim to get you off with 10-15% of the total? Chip -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by DF2 on October 24, 2009, 9:52 am Please log in for more thread options In misc.taxes.moderated, Chip wrote: >Without going into the gory details, I owe back taxes from 2006. >Obviously I owe them the actual taxes, interest and penalty. No crime, >just a combo of procrastination and confusion on how to file a employee >stock sale. > >What's the best way to minimize the overall $$$$? Admit I was stupid, >and ask for their mercy, hire a lawyer, or one of those firms on late >night TV that claim to get you off with 10-15% of the total? I would look for a local EA (enrolled agent). You don't need a lawyer. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by removeps-groups@yahoo.com on October 24, 2009, 2:12 pm Please log in for more thread options > Without going into the gory details, I owe back taxes from 2006. > Obviously I owe them the actual taxes, interest and penalty.  No crime, > just a combo of procrastination and confusion on how to file a employee > stock sale. Was this a non qualified stock option, or employee stock purchase plan? If yes, then the profit should have already been included in your W-2 income, although you have to report the sale on Schedule D, typically with net gain equal to the negative of the commissions (i.e. a tiny net loss). If you exercised and held the shares for some time before selling, then you have additional profit or loss. > What's the best way to minimize the overall $$$$?  Admit I was stupid, > and ask for their mercy, hire a lawyer, or one of those firms on late > night TV that claim to get you off with 10-15% of the total? How much money are we talking about here? And was the amount in excess of 25% of your reported income? I read somewhere that only 15% of offer-in-compromise offers are accepted. Normally you have to pretty broke. Now I could be wrong, but I think the worst case penalty for you is: 25% of the tax due (this is the penalty for failure to pay enough tax) + interest of about 8% a year (from 4/2007 to now is about 2.5 years or 20%). I don't think the 25% failure to file penalty would exist here. It's possible the IRS could waive the 25% penalty for failure to pay enough tax because you've stepped forward on your own -- but that's my common sense talking, not the law. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on October 24, 2009, 2:47 pm Please log in for more thread options Chip wrote: > Without going into the gory details, I owe back taxes from 2006. > Obviously I owe them the actual taxes, interest and penalty. No crime, > just a combo of procrastination and confusion on how to file a employee > stock sale. > > What's the best way to minimize the overall $$$$? Admit I was stupid, > and ask for their mercy, hire a lawyer, or one of those firms on late > night TV that claim to get you off with 10-15% of the total? > > > Chip > Impossible to give you an answer without a lot more facts. We have no idea how much $ we're talking about; how complex your tax return is; how many years we're discussing; your net worth; your cash flow; etc. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Mark Rigotti on October 27, 2009, 9:59 am Please log in for more thread options > Without going into the gory details, I owe back taxes from 2006. Obviously > I owe them the actual taxes, interest and penalty. No crime, just a combo > of procrastination and confusion on how to file a employee stock sale. > > What's the best way to minimize the overall $$$$? Admit I was stupid, and > ask for their mercy, hire a lawyer, or one of those firms on late night TV > that claim to get you off with 10-15% of the total? > > > Chip Avoid the last option at all costs - I could forward to you the contact information of at least a dozen clients that have tried that route. NONE with any success. My advise is work out a payment plan. The Offer in Comprimise route requires 20% down (I believe) and if you are working and making money will probably be turned down. Regards, Mark Rigotti -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Back taxes: his and hers January 28, 2009, 1:50 pm Charles Rangle's back taxes September 13, 2008, 12:51 am back taxes and lump sum disability payment April 2, 2007, 5:58 pm Can my spouse claim me as a dependant when I have owe back taxes? Will he be responsible for them? June 5, 2007, 3:32 pm How do I get refund back from VA?? taxes were mistakenly withheld for one month in 2007??? April 10, 2008, 11:06 am Are we back on? 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