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I owe back taxes that have ballooned from $7k to $97k over the past few years. I have no idea how I'm going to get out of this debt.

newbieshore

newbieshore

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Nov 21, 2020
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#1
Hello everyone,

I got into business without knowing much about taxes or business management. I did really well initially, but the business started to slow down as the market became saturated. I had a great year in 2018, but I neglected to file taxes for several years, and now the IRS has caught up with me. They sent me a letter a couple of weeks ago, and I need to get everything ready to file taxes for the years I missed, from 2017 until now.

Why didn’t I file? My goal was to first start generating money like I used to (which still hasn't happened) so I could afford to breathe and pay them around $500 a month. It has been incredibly hard to catch up; it has crippled me in every way possible—depression, anxiety, you name it. I can't think straight.

I'm now ready to start inputting everything into QuickBooks to get it ready for the IRS so they can file. My question is, how can I make this debt any less, especially the one from 2016 that was $7k and has now turned into $97k? Is there any way to get this removed?

Can the IRS help me lower this debt? I don’t know what’s going to happen. I am so lost and depressed, to be honest. Sometimes I forget about it, but other times I feel like I'll never get out of this. I have a daughter and wife to support, and I don't share much of my stress with them. My wife knows and says she's willing to help me with all the paperwork and QuickBooks stuff.

Please, any advice would be helpful I used to go to alcohol often to forget this, I dont drink anymore it makes my thoughts worse
 
#3
You could apply for the Currently Not Collectible , so they pause collection activities . And also you could try to apply for the Offer in Compromise program . Otherwise you could try to arrange pay in installments , depending on the situation they could lower the tax burden .
I hope you learned from your mistakes.
 
#6
clemens said:
What country are you in ?
Click to expand...
Seems US.

scooterguy said:
How can $7k turn into $97k? Penalties and interest have a limit.
Click to expand...
I guess just more years that he failed to pay.

I would recommend checking if you are eligible for a tax relief. Otherwise, as you have not yet filed, you may be able to increase business expenses and lower your taxes this way. You can get a website for $20000 etc. Of course, you will need an invoice from 2018 etc. but this is all doable.
 
#7
newbieshore said:
Hello everyone,

I got into business without knowing much about taxes or business management. I did really well initially, but the business started to slow down as the market became saturated. I had a great year in 2018, but I neglected to file taxes for several years, and now the IRS has caught up with me. They sent me a letter a couple of weeks ago, and I need to get everything ready to file taxes for the years I missed, from 2017 until now.

Why didn’t I file? My goal was to first start generating money like I used to (which still hasn't happened) so I could afford to breathe and pay them around $500 a month. It has been incredibly hard to catch up; it has crippled me in every way possible—depression, anxiety, you name it. I can't think straight.

I'm now ready to start inputting everything into QuickBooks to get it ready for the IRS so they can file. My question is, how can I make this debt any less, especially the one from 2016 that was $7k and has now turned into $97k? Is there any way to get this removed?

Can the IRS help me lower this debt? I don’t know what’s going to happen. I am so lost and depressed, to be honest. Sometimes I forget about it, but other times I feel like I'll never get out of this. I have a daughter and wife to support, and I don't share much of my stress with them. My wife knows and says she's willing to help me with all the paperwork and QuickBooks stuff.

Please, any advice would be helpful I used to go to alcohol often to forget this, I dont drink anymore it makes my thoughts worse
Click to expand...
Is there anything physical they can seize?
 
#11
newbieshore said:
Hello everyone,

I got into business without knowing much about taxes or business management. I did really well initially, but the business started to slow down as the market became saturated. I had a great year in 2018, but I neglected to file taxes for several years, and now the IRS has caught up with me. They sent me a letter a couple of weeks ago, and I need to get everything ready to file taxes for the years I missed, from 2017 until now.

Why didn’t I file? My goal was to first start generating money like I used to (which still hasn't happened) so I could afford to breathe and pay them around $500 a month. It has been incredibly hard to catch up; it has crippled me in every way possible—depression, anxiety, you name it. I can't think straight.

I'm now ready to start inputting everything into QuickBooks to get it ready for the IRS so they can file. My question is, how can I make this debt any less, especially the one from 2016 that was $7k and has now turned into $97k? Is there any way to get this removed?

Can the IRS help me lower this debt? I don’t know what’s going to happen. I am so lost and depressed, to be honest. Sometimes I forget about it, but other times I feel like I'll never get out of this. I have a daughter and wife to support, and I don't share much of my stress with them. My wife knows and says she's willing to help me with all the paperwork and QuickBooks stuff.

Please, any advice would be helpful I used to go to alcohol often to forget this, I dont drink anymore it makes my thoughts worse
Click to expand...
Declare bankruptcy.
 
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