Tax Question

[RyanLanane]

Let's say someone owes the IRS about 10K right now ...

They are looking over past returns filed and realized from 1998-2001 when they were making the biggest amount of money they were making in their lives they had a jackass of a CPA at PriceWaterhouseCoopers who files everything through Schedule C's from his corporation instead of schedule K-1.

From what I can see my biggest gain in refiling would be I would get back a great deal of SE taxes, especially since I payed myself a salary - most likely all of them I paid. Am I incorrect on this or is this correct? My salary was most likely over the amount required.. I believe it was $50K ... so i might have 20K left for Medicare.. etc under SE taxes. It has been a while since I have dealt with any of this.

Besides this, and the fact it will be a bitch to refil the way he filed the originals... Do I have any other potential positives or negatives by refiling and trying to get back that SE tax I paid to cover my current tax debt?

Anyone who can go over or point me to an article about the differences of claiming your Business income through Schedule C and K1 - I would really appreciate it.. or if you have any experience with it, post here.. I'm sure about anyone here who is American has some experience with this...

[RyanLanane]

Looking a little closer, Schedule E was used every year but one which is the one that jumped out at me. The one year it was not used and SE Tax was paid it was to the Tune of $20,000.00 ... back in 1999 - The rest of the years no SE Tax was paid and the corporation was filing thru Schedule E only with a salary being paid ... which I forgot it truly doesn't matter what the amount is (according to my CPA at the time) as long as the IRS sees it as a fitting salary for your duties.

Are there any other tax benefits besides this year that would be achieved by refiling the other years differently? I hear so many people mention schedule K-1 when they talk about S-Corps being a way around paying taxes but schedule SE clearly states any income from K1 derived from self employment or any income from schedule C which would also be self employment income..

I find it hard to believe he slipped to the tune of me over paying $20,000 in taxes so I think there may be something missing here... Even though it was a small percentage of what I paid that year it is a nice chunk of change to say the least. I looked and the S-Corp was in effect the whole year, I can't see any other reason he would of filed that way this year and the rest of the years filed properly to avoid the SE tax... any ideas anyone?

[PornoDoggy]

The quality of accouting advice available on message boards is on a par with the quality of legal and medical advice.

[Timon]

This is the first and probably the last time but I couldn't agree more with PD, talk to an accountant or a tax attorney, not a bunch of hotheaded pornographers ;-)

[Timon]

This is the first and probably the last time but I couldn't agree more with PD, talk to an accountant or a tax attorney, not a bunch of hotheaded pornographers ;-)

[RyanLanane]

This is about the only board I would take hot headed pornographers advice off of Timon :) And only if they were the right posters... ;)

Everything I'm reading says what he did the following years was illegal avoiding the SE Tax lol ... Fucking Taxes are a bitch !

I'm not the only one here that knows that though...

[Timon]

Hey be glad you're paying taxes....

RawAlex didn't pay a penny last year, do you think it's fun being him?? ;-)))

[Almighty Colin]

Originally posted by PornoDoggy@Jun 2 2005, 05:29 AM
The quality of accouting advice available on message boards is on a par with the quality of legal and medical advice.
:pearl:

[Steady]

I agree...unless someone on this board crunches numbers for a living,
(i.e. Account/CPA) your best bet is to seek advise from one who does. :)

[TheEnforcer]

Consult a tax attorney.

[*KK*]

I'd probably shut up and just pay what I owed this year, unless I was absolutely positive that all of my previous years were correct or wrong in my favor.

Nothing says I love you from the IRS like an audit notice.

[RyanLanane]

Originally posted by Almighty Colin+Jun 2 2005, 05:31 AM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Almighty Colin @ Jun 2 2005, 05:31 AM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-PornoDoggy@Jun 2 2005, 05:29 AM
The quality of accouting advice available on message boards is on a par with the quality of legal and medical advice.
:pearl: [/b][/quote]

O.K. So anyone want to give my girlfriend directions on how to perform a root canal ? I have been needing to get it done for months!!

I also want to sue the city as they dug up my front yard to lay lines and never patched up the grass a year later they keep coming out and digging up... makes my yard look like hell - Do I have a case? B)

[Steady]

I also want to sue the city as they dug up my front yard to lay lines and never patched up the grass a year later they keep coming out and digging up... makes my yard look like hell - Do I have a case?

Do you have a case? Absolutely!

Is it arguable? Fat chance! :) :)

[RyanLanane]

Originally posted by Steady@Jun 2 2005, 11:48 AM
I also want to sue the city as they dug up my front yard to lay lines and never patched up the grass a year later they keep coming out and digging up... makes my yard look like hell - Do I have a case?

Do you have a case? Absolutely!

Is it arguable? Fat chance! :) :)

You aren't a real attorney, answers would of been as follows :


Do you have a case? Absolutely, a very strong case! Stop by my office and we'll talk about it and I'll get some notes from you

Is it arguable? Sure, these thigns ALL depend on the jurours but I have an aquaintance who helps me out in that department!! He only runs $10,000 per trial... Do you want him to be at the 'first' meeting we have as well ?

[Trev]

I'm not a dentist but I can fix teeth :ph34r:

[iknowalttl]

The IRS are a bunch of fuckers in the way they are allowed to go back 6 years to try to collect from you but they only allow you to go back 3 years on them... I personally had some business with them on not filing for a bit and when I straightened everything out, everything they owed me that was over 3 years old, they said I had no rights to. Out of 7 years of not filing, they owed me every year but 1, The only thing I owed them for was from the 6th year prior and I had to pay it. The 4th and 5th years prior both showed them owing me some bucks but that was just tough shit. At the time, the current and prior 2 years, I was able to collect and the 7th prior year didn't need to be filed at all. This was all done by the book with lawyers and by CPA pros so if you are thinking of trying to recover anything over 3 years old, you will need more than luck.



edited in.... I would still get my advise from a lawyer/CPA if it was me in the situation, but I wouldn't hold any hopes

[Steady]

Originally posted by RyanLanane+Jun 2 2005, 02:29 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (RyanLanane @ Jun 2 2005, 02:29 PM)</td></tr><tr><td id='QUOTE'><!--QuoteBegin-Steady@Jun 2 2005, 11:48 AM
I also want to sue the city as they dug up my front yard to lay lines and never patched up the grass a year later they keep coming out and digging up... makes my yard look like hell - Do I have a case?

Do you have a case? Absolutely!

Is it arguable? Fat chance! :) :)

You aren't a real attorney, answers would of been as follows :


Do you have a case? Absolutely, a very strong case! Stop by my office and we'll talk about it and I'll get some notes from you

Is it arguable? Sure, these thigns ALL depend on the jurours but I have an aquaintance who helps me out in that department!! He only runs $10,000 per trial... Do you want him to be at the 'first' meeting we have as well ?[/b][/quote]




:wnw:

[grimm]

Originally posted by iknowalttl@Jun 2 2005, 03:53 PM
The IRS are a bunch of fuckers in the way they are allowed to go back 6 years to try to collect from you but they only allow you to go back 3 years on them... I personally had some business with them on not filing for a bit and when I straightened everything out, everything they owed me that was over 3 years old, they said I had no rights to. Out of 7 years of not filing, they owed me every year but 1, The only thing I owed them for was from the 6th year prior and I had to pay it. The 4th and 5th years prior both showed them owing me some bucks but that was just tough shit. At the time, the current and prior 2 years, I was able to collect and the 7th prior year didn't need to be filed at all. This was all done by the book with lawyers and by CPA pros so if you are thinking of trying to recover anything over 3 years old, you will need more than luck.



edited in.... I would still get my advise from a lawyer/CPA if it was me in the situation, but I wouldn't hold any hopes
the best bet is to just pay the IRS, get a tax attorney to settle it. the Service isnt too friendly to the idea of giving back money just to get it back for a debt.

[*KK*]

Make sure to request a bookend audit if you ever get the joy of receiving a notice regarding one. It's the only sure way to get them off your back no matter who owes who and how much.

[RyanLanane]

KK, Is that you setting me up so if an audit occures I have 20 IRS gangsters walking in thrashing my offices looking for shredded documents? B)