? about small business and tax problems. Severity???
Page 1 of 2 12 LastLast
Results 1 to 15 of 21
  1. #1
    Registered User nodmicks's Avatar
    Join Date
    Sep 2004
    Posts
    6,854
    Post Thanks / WTG / Hug
    Rep Power
    37

    Default ? about small business and tax problems. Severity???

    I do not own a small business just to start but I am curious about a few tax issues with good reason.

    How bad is this ????

    $70K behind on state taxes

    behind on paying in unemployment tax filed with state

    IRS has stopped in several times

    6 certified IRS letter needed to be signed for

    Personal residence in foreclosure with the state listed on it

  2. #2
    Registered User 227melissa's Avatar
    Join Date
    Jun 2011
    Location
    mobile alabama
    Age
    51
    Posts
    176
    Post Thanks / WTG / Hug
    Rep Power
    4

    Default

    Back in 1996 had a great job with a good salary and benefits, worked there for 2 years. Came to work one day and there were pad locks on the door and a note form the IRS this property has been seized. Went to draw unemployment the company had never paid any in, what a SHOCK!!!!!!!!! Saw the owner a couple of weeks later and asked him what in the world did you do with all the money the company was making and why didn't you pay taxes and unemployment. He said sorry, but how do you think I paid for that 4 million dollar house. REALLY !!!!!!!!

  3. #3
    Registered User nodmicks's Avatar
    Join Date
    Sep 2004
    Posts
    6,854
    Post Thanks / WTG / Hug
    Rep Power
    37

    Default

    Wow Melissa that must have been rough! That is what I am afraid of! No 4 million dollar house in the equation just one bought over 30 years ago worth the mid 100's. I checked and in our state the employees can collect unemployment regardless of if the business has kept up paying in.

    I'm only a 12.5 hr part time employee so it is not such a big issue for me personally but it would be for the full time employees. Especially the single people. I know this is happening but I know nothing about businesses and tax issues so I don't know if this is " severe "or not. If it were my personal taxes I'd have a stroke!

  4. #4
    Rude and Vile Master Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    45
    Posts
    8,562
    Post Thanks / WTG / Hug
    Rep Power
    76

    Default

    Quote Originally Posted by nodmicks View Post
    I do not own a small business just to start but I am curious about a few tax issues with good reason.

    How bad is this ????

    $70K behind on state taxes

    behind on paying in unemployment tax filed with state

    IRS has stopped in several times

    6 certified IRS letter needed to be signed for

    Personal residence in foreclosure with the state listed on it
    Extremely bad.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"


    Greebo
    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
    WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three
    Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!

  5. #5
    Registered User nodmicks's Avatar
    Join Date
    Sep 2004
    Posts
    6,854
    Post Thanks / WTG / Hug
    Rep Power
    37

    Default

    As in seizure bad Greebo? The owner doesnt think we know about any of this but after taking collection calls it is a matter of public record to look up the state stuff. I know about the IRS because I was there and did the signing. So is this get out of doge now bad or can the owner possibly salvage it? We all really enjoy our jobs and have worked there for many years. It is more like a family than coworkers. I have been asked how bad I think it is since they all think I am in the financial know. I am not in the know about any of this!

  6. #6
    Registered User CrazyCat's Avatar
    Join Date
    Dec 2008
    Location
    ohio
    Posts
    379
    Post Thanks / WTG / Hug
    Blog Entries
    38
    Rep Power
    7

    Default

    My opinion is this..

    It's get out of dodge-bad~If you depend on this salary~I'd be looking NOW for jobs.

  7. #7
    Registered User nodmicks's Avatar
    Join Date
    Sep 2004
    Posts
    6,854
    Post Thanks / WTG / Hug
    Rep Power
    37

    Default

    Thanks Crazycat. I really was hoping this was something that could be cleared up.

  8. #8
    Rude and Vile Master Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    45
    Posts
    8,562
    Post Thanks / WTG / Hug
    Rep Power
    76

    Default

    Does the owner have the 70k + the other taxes laying around with which he can pay all this stuff?

    If not, get out of dodge.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"


    Greebo
    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
    WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three
    Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!

  9. #9
    Registered User Spirit Deer's Avatar
    Join Date
    Feb 2009
    Location
    Boundary Waters, Minnesota
    Posts
    8,730
    Post Thanks / WTG / Hug
    Rep Power
    52

    Default

    My husband works in revenue collections. There, I've said it. You can hate on us all you want, I don't care. He does not discuss individual cases with me of course, but over the years he's mentioned how things work in general.

    The owners can most likely still salvage things IF they work with the entities in question to set up payment plans and then follow through. If they try to dodge things, lie, don't follow through, etc., they may find their property seized and their bank accounts levied, which would, in effect, shut the business down. Whether or not they would be able to keep their personal property such as a house might depend on how the business is structured and what tax laws are on the books in the state where the business and personal property are located.

    I can also tell you revenue collections are up because of the economy. The states and feds need the money. That doesn't need to become a political discussion on this thread, but that's reality because revenues are down due to unemployment, soft retail sales, and other factors. Therefore, revenue departments are pushing harder to get delinquent taxpayers to pay up.

    $70K really isn't much money when you're talking about a business. They can fix it, but not if they're ignoring letters from the IRS. Believe me, that's the worst thing they can do, ignore it and hope it'll go away. It's far better to be proactive. They should be contacting all the various entities and asking to set up payment plans and then following through by making the payments.
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    “Anything you cannot relinquish when it has outlived its usefulness possesses you.” -Mildred Lisette Norman
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

  10. #10
    Rude and Vile Master Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    45
    Posts
    8,562
    Post Thanks / WTG / Hug
    Rep Power
    76

    Default

    Quote Originally Posted by Spirit Deer View Post
    $70K really isn't much money when you're talking about a business.
    That's a really really bad assertion in an otherwise great post.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"


    Greebo
    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
    WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three
    Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!

  11. #11
    Registered User khaski's Avatar
    Join Date
    Sep 2008
    Posts
    1,540
    Post Thanks / WTG / Hug
    Rep Power
    14

    Default

    Time to find a new job- I would distance myself from that place as fast as I could! My husband has a small business, no employees but him (well, and me, off the books)- we never have issues with taxes owed. You know why? They simply get swept away into a savings account and go untouched until it's time to pay the tax man (quarterly).

    I would remove myself from the compnay promtply. Sure, it's not YOUR debt, but what else is going on behind the scenes you don't know about, if THAT situation has gotten so out of hand?!?


    Kill the mortgage! Goal: 12/2023 Left to go: $146,344.05
    Extra paid: 2012- $4408.03 2013-$5396.21+ $400 extra towards escrow
    2014-$884.63

    Menu planning challenge- goal- 41/51 done 3/51
    Coupon challenge: $44.45 saved $13.38 spent buying coupons

  12. #12
    Registered User nodmicks's Avatar
    Join Date
    Sep 2004
    Posts
    6,854
    Post Thanks / WTG / Hug
    Rep Power
    37

    Default

    Quote Originally Posted by Greebo View Post
    Does the owner have the 70k + the other taxes laying around with which he can pay all this stuff?

    If not, get out of dodge.
    I doubt it if we are getting collection calls etc. I'm baffled because business is great. Really great. We routinely have staff opening early and staying after close to get all the clients in on many days.

    Quote Originally Posted by Spirit Deer View Post
    My husband works in revenue collections. There, I've said it. You can hate on us all you want, I don't care. He does not discuss individual cases with me of course, but over the years he's mentioned how things work in general.

    The owners can most likely still salvage things IF they work with the entities in question to set up payment plans and then follow through. If they try to dodge things, lie, don't follow through, etc., they may find their property seized and their bank accounts levied, which would, in effect, shut the business down. Whether or not they would be able to keep their personal property such as a house might depend on how the business is structured and what tax laws are on the books in the state where the business and personal property are located.

    I can also tell you revenue collections are up because of the economy. The states and feds need the money. That doesn't need to become a political discussion on this thread, but that's reality because revenues are down due to unemployment, soft retail sales, and other factors. Therefore, revenue departments are pushing harder to get delinquent taxpayers to pay up.

    $70K really isn't much money when you're talking about a business. They can fix it, but not if they're ignoring letters from the IRS. Believe me, that's the worst thing they can do, ignore it and hope it'll go away. It's far better to be proactive. They should be contacting all the various entities and asking to set up payment plans and then following through by making the payments.
    I appreciate your reply. Why would anyone look badly on anyone working for the IRS? No hating here. Actually someone else told me 70K is not a lot for a small business. I know nothing about it but did look on our states site . There were many with 150K+. Well the owner recently dodges and refuse to take bank and collection calls. I hope this isnt the same with the IRS. Several of the letters came in one day. All letters were certified.

    Quote Originally Posted by khaski View Post
    Time to find a new job- I would distance myself from that place as fast as I could! My husband has a small business, no employees but him (well, and me, off the books)- we never have issues with taxes owed. You know why? They simply get swept away into a savings account and go untouched until it's time to pay the tax man (quarterly).

    I would remove myself from the compnay promtply. Sure, it's not YOUR debt, but what else is going on behind the scenes you don't know about, if THAT situation has gotten so out of hand?!?
    I really can't remove myself without some time and research. I need to find somewhere comparable within a reasonable distance to make it easy for my clients. The real bummer is I am at the top of the commission scale at 60% and will be expected to go down to 40 -50% in a new place. I work 2.5 days weekly. We live off of dh's pay so even in worst case scenario I won't be in a scramble to get job. It wont be hard to go to another shop at all and get a job. They always want staff with a wait list of clients. I just really dread starting over. I've been there since 97 and worked one other place for 8 years prior. That is my whole career.

    Our state has lots of options if business closes but none apply because it is under 25 employees. Dh is telling me if I want to just see what happens he is all for it. I am going to go talk to a few owners of businesses within a few miles. Whew I am I glad this is one of the few owners that didnt insist on a " no compete contract".


    I appreciate you all taking the time to give your advice.

  13. #13
    Registered User 227melissa's Avatar
    Join Date
    Jun 2011
    Location
    mobile alabama
    Age
    51
    Posts
    176
    Post Thanks / WTG / Hug
    Rep Power
    4

    Default

    I eventually received unemployment, but had to wait a long time. Received my first check just as I started my new job, they only gave me the one check.

  14. #14
    Registered User nodmicks's Avatar
    Join Date
    Sep 2004
    Posts
    6,854
    Post Thanks / WTG / Hug
    Rep Power
    37

    Default

    How long were you unemployed and only got the one check?

  15. #15
    Registered User Spirit Deer's Avatar
    Join Date
    Feb 2009
    Location
    Boundary Waters, Minnesota
    Posts
    8,730
    Post Thanks / WTG / Hug
    Rep Power
    52

    Default

    If the owners are avoiding contact with creditors I would be worried they've given up and intend to just walk away. It seems like anyone who wanted to try to save the business would be actively trying to work with creditors and tax departments to find ways to solve problems.
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    “Anything you cannot relinquish when it has outlived its usefulness possesses you.” -Mildred Lisette Norman
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Page 1 of 2 12 LastLast

Similar Threads

  1. Small Business Saturday!
    By steelergal in forum General Chat
    Replies: 9
    Last Post: 11-26-2011, 06:30 PM
  2. Small problems related to my chickens
    By Dutchie in forum Homesteading and gardening
    Replies: 8
    Last Post: 04-23-2011, 01:02 AM
  3. Small Business Classes
    By Hollyhandi in forum Supplemental Income, Small Business
    Replies: 3
    Last Post: 05-14-2007, 12:39 PM
  4. Small Business Printables
    By crdurham in forum Supplemental Income, Small Business
    Replies: 3
    Last Post: 10-16-2004, 12:58 AM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •