Your Tax Question - 077

Dear John, My son just moved out on his own last year and he assured me that he had "everything covered" where his taxes were concerned.  Now, he found out that his friend who was "helping him out" actually boogered up a few other buddie's taxes.  Now he wants to check his out but he can't seem to find them.  Does the IRS keep copies and can we get them if they do?  Thanks, Melvin
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Hi Melvin,


Don't fret this situation too much - yours would not be the first son who had inadvertently misplaced his tax files.  Think of it this way, he'll be more apt to keep a hold of them going forward.


The IRS has 3 ways that you may get your tax records from them.  You can order a copy online, you can call them at 1-800-908-9946, or you can fill out form 4506-T to request a copy by mail.  I prefer the online method as sitting on the phone with the IRS is only slightly longer than doing things by snail-mail.  Whatever option you choose it should not be too difficult.


Good Luck,
John


PS.  If your son needs someone who is a little better than a buddy who is "doing him a favor" with his upcoming taxes suggest that he email me.

Your Tax Question - 076

Dear John, I received a letter from the IRS that tells me that I owe them a decent amount of money that I don't have.  Can I set up a payment plan with them?  Thank you, Joan
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Hi Joan,


My question is "Are you sure that the IRS is correct - that you owe them what they say you owe them?"  Unless you know for sure you should not just take their word for it, you should check with your tax person to verify the IRS figures.


If, however, you are sure of their numbers then you should consider taking out a small loan to pay the IRS off in full (it is usually beneficial to you to be rid of them all together).  If you cannot do this then you might be able to get more time to pay (if you can pay in full).  I say all of this to now say "Yes" to your initial question - you may request a payment option.  This is done by filing out a Form 9465 and submitting it to the IRS where they will determine if you are granted the payment option, or not, with-in 30 days.


If you need help with any of this please send me an email and I'll get it all figured out for you.


Regards,
John

Your Tax Question - 075

Dear John, I am considering starting a small business - what do you think?  Seriously, James
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Hi James, 


That is seriously a vague question.  While there is a thousand ways to go with that I will just say that I heartily approve.  The way that you set up your business needs to be considered because it will determine what rules you will have to follow while doing business and filing your taxes.  The more complicated the business the more you will need to follow the advice of an accountant, CPA, and or attorney.  Other than that, there is a lot of consideration so get ready to roll your sleeves up and have fun.


Best of luck,
John   

PS.  Please send me an email if you want to buy an hour or two of consultation. 

Your Tax Question - 074

Dear John,  It is approaching October already and I am not sure that I have had enough money taken out of my checks to cover taxes.  I am not concerned about getting money back but I never like to pay.  How can I decide if I have had enough taken out?  Thanks, Julia

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Hi Julia,

Many people usually have this exact question so the friendly folks at the IRS have developed a nice interactive calculator for helping you to figure this out.  (Be sure to have your latest pay-stub and last year's tax info handy)

If you need more help with this please contact me.

Thanks,

John

dullc2005@gmail.com