my 401k is at 100k right now. I stopped contributing to it a few weeks ago. My irs balance is 190k + 27.5k at the moment. even depleting my 401k would leave me in the hole around 150k. It blows my mind that the IRS would expect me to pay off a balance this high when not only my income has changed significantly but my net worth has dropped around 99%. I know there is a way to sort this out and pa a more appropriate amount back, i just do not know who has the knowledge/skillset to work it out for me.
Help with a complicated Tax issue from 2017/2018
- Thread starter baddaytrader
- Start date
my 401k is at 100k right now. I stopped contributing to it a few weeks ago. My irs balance is 190k + 27.5k at the moment. even depleting my 401k would leave me in the hole around 150k. It blows my mind that the IRS would expect me to pay off a balance this high when not only my income has changed significantly but my net worth has dropped around 99%. I know there is a way to sort this out and pa a more appropriate amount back, i just do not know who has the knowledge/skillset to work it out for me.
Try the IRS Tax Advocate which works on behalf of US taxpayers. They may be able to help you get lower monthly payments. You can plead hardship which it is! IRS would rather you pay them. You have to make an effort to pay though. Interest and penalties continue to accrue daily. Also, total non-payment will result in them garnishing your wages and probably, seizing what assets you have left. You may not want to hear that but, that is the truth.
I have called into the IRS and the Advocate service multiple times. The advocate service told em they cant help with my particular situation as the way they see it I had made money, I owed that money, and I still earn some money so I should pay off in full. IT apparently doesn't matter that my income is significantly less, that my means to produce my previous level of income is no more, and that I already lost practically everything but my 401k. The IRS collections told me that they are not there to advise on taxation, only to collect, and the minimum they will accept as payment is 3600, which is about 1200 more than I can afford without pulling from my 401k or getting a second job. I need to figure out something immediately tho. I hired a CPA 2 months ago to help my situation and they have done nothing but mislead me. I have 1 week left before my hold on my account with the irs expires and they will start garnishing/seizing my accounts.
Hahaha... says the guy who makes 135k/year and can't scrape together 3,000.
You asked, and you were provided with 2 very valid suggestions.
1) Consult with Green, who is THE expert in trader taxation in USA.
2) Consult a tax mitigation cpa/attorney/firm, with an offer for a referral.
You have dismissed both for whatever reason, and you continue to whine and expect some sort snowflake forgiveness.
You are either a liar, exaggerating your situation trolling for a shoulder, or you are the dumbest business person in Austin.
1) Consult with Green, who is THE expert in trader taxation in USA.
2) Consult a tax mitigation cpa/attorney/firm, with an offer for a referral.
You have dismissed both for whatever reason, and you continue to whine and expect some sort snowflake forgiveness.
You are either a liar, exaggerating your situation trolling for a shoulder, or you are the dumbest business person in Austin.
some of ya'll are seriously autistic or something. How many times to I have to post the minimum they will accept is 3600?
135k a year is a take home of 101k.
101k take home is about 8400 a month
after my bills and expenses, I realistically have at most about 2400 left over.
3600 is still almost half of my take home pay. of a decent paying job where im already considered a high earning individual in the US.
If anythign were to happen, lose my job, get sick, car accident, im not in a position to make payments to the IRS.
The amount owed is more than most peoples homes are worth and is accruing interest faster than im gonna b able to pay this off.
whats hard to understand that? I live in Austin, one of the higher cost of living cities in the US.
some of yall should take a long look in the mirror cause your kind of assholes. I know I screwed up and I'm looking for help. I only hope that nothing like this happens to you cause karma is a bitch
yah. I reached out to green today. I also PM'd the other guy on the thread. I appreciate the help.
also, where do you see me dismissing anything? some of yall are just a bunch of assholes. I've replied to just about every post on here.
Giving me 0 buffer outside of my expenses I am locked into I have 3700. thats just at the minimum the IRS will allow on a payment plan. Can you imagine living paycheck to paycheck, with 0 room from saving, for about 7 years? Ill be 41 years old.
Why? cause income wasn't categorized as business income / trading income and I have no idea how to go back and make the case to have it all re categorized.
The way I'm looking at this is I used my savings in a business. That business went under. Now I'm expected to pay back the tax on income I don't have anymore putting me in a very shitty situation for an incredibly long time. I mean it took me about 9 years of saving and trading to get to where I was. I wont even have the possibility of getting back to where I was until I'm almost 50 over this if I don't work multiple jobs or pull some miracle out of my ass.
gross monthly income leftover
Total monthly exp $ 7,536.86 $ 11,250.00 $ 3,713.14
type expense amount
fixed rent $ 1,850.00
fixed Landlord ins $ 13.00
fixed car ins $ 180.00
fixed car payment $ 870.00
variable gas - vehicle $ 207.86
variable gas - home $ 55.00
variable electric- home $ 120.00
variable water - home $ 65.00
variable trash/sewage $ 45.00
fixed Pet food /Supl. $ 60.00
fixed internet/cable $ 100.00
variable cell $ 115.00
variable parking fees $ 20.00
variable vehicle maintenance $ 62.50
variable medical $ 41.67
variable groceries $ 500.00
variable haircuts $ 40.00
variable gym $ 40.00
variable netflix $ 14.00
variable amazon prime $ 10.00
variable amazon music $ -
variable clothing $ 88.00
variable irregular expenses $ 50.00
fixed furniture loan $ 65.00
variable Health Insurance $ 60.00
variable income taxes $ 2,810.67
variable 401k $ -
fixed Dela Platinum card $ 16.67
fixed Chase Saphire card $ 37.50
Yearly budgets
clothing $ 2,000.00
amazon prime $ 120.00
medical $ 500.00
vehicle maintenance $ 750.00
Dela Platinum card $ 200.00
Chase Saphire card $ 450.00
Income Taxes Calc
Tax Type Marginal Tax Rate Effective Tax Rate 2018 Taxes*
Federal 24.00% 17.64% $23,810
FICA 1.45% 7.35% $9,918
State 0.00% 0.00% $0
Local 0.00% 0.00% $0
Total Income Taxes 24.98% $33,728
Income After Taxes $101,272
Retirement Contributions $0
Take-Home Pay $101,272
Monthly Vehicle Gas Calc
avg yearly miles 13000
avg gas cost $ 3.07
avg vehicle mpg 16
avg yearly cost $ 2,494.38
avg monthly cost $ 207.86