Video instructions and help with filling out and completing Are Form 843 Taxpayers

Instructions and Help about Are Form 843 Taxpayers

Melissa is in st. Paul hi Melissa how are you hi I'm good this is such a pleasure so thank you for taking my call thank you how can I help okay so my husband has a small business he's a carpenter we have made a mistake by not paying taxes year-round so now it's tax time we owe the IRS 12 grand my question is what is the best way about paying back this money I am an FPU I'm a baby step number 2 but I am I assume I should pay taxes before everything correct work um do I put ledger house what is your household income pre-tax is about 70 grand okay and so he is running his own business yeah and have you now set up a separate checking account for his business and any money that goes into that account any money he makes in the business goes into that account and only business expenses come out of that account and any money you pull out of that account to bring home called profit you set aside 1/4 of it in a separate savings account starting today so that your withholding or your holded withholding on yourself so that this doesn't happen again okay that's first and foremost you have to stop the leak first and foremost awfully we need to stop it yes yes your 1/4 of his income a quarter of whatever he takes out of the business and brings home is your profit okay yeah and a quarter of your profit and you set that aside for taxes and you're supposed to pay quarterly estimates on a small business like this so you're supposed to pay in once a quarter and it's a one-page sheet it's not real difficult to fill out and one of our endorsed local providers or whoever does your taxes can help you do that okay yeah we need to do it we I yes we need to we've been saying this for years yep and it goes come back to bite you and it has an effect okay so you have any money saved we do we have we have about 2500 I have mapped out the next three months and I think if we don't take out any money which I understand we have to but I have it set up where if we didn't take out any money and we put all our money into the Texas at Waco we could have it paid off by the end of May what do you might make out where you mean take out any money what all of our income like so our monthly expenses is for grant but we're bringing in about seven grand a month right now but that's not taxed so with that we could I was wondering if I pay it back really really quick and then start paying forward once that would be okay but you should be able to do that by um don't you do just as fast as you can okay and no matter what happens regardless of if you don't pay the taxes on time you file on time for sure yeah we've-- filing an extension does not give you an extension on payment yeah okay so go ahead and file by April 15th and you're going to be late on some of your taxes so you're going to have a little bit of penalty on the portion that you're late of course we want to pile up as much as we can possibly pile up by April 15th to avoid penalty on it okay oh well last year we had until 2 September to handle well you didn't no you didn't you got penalized on but there was a penalty okay okay you get penalized yeah you do not have the option to delay payment with an extension you have the option to extend your filing but there's no reason to extend the filing you've got the paperwork yes we have the paperwork go ahead and file it and just don't pay on time and then they're still going to hit you with the penalty on the portion you don't pay by April 15th but you got twenty five hundred which has got us down to ninety five hundred today yeah and this is you know you still got a month and a half no you don't yeah you know you got a month but um anyway yeah you're going to have to scrape it claw how much can you put together more by the 15th of April do you think gosh maybe another grand ok cool that's great because 8500 then and you're going to clean that up by down in May you said yeah you know I actually I think I could get it to about 5 grand by April good every dime you get them is going to keep you from being penalized on it okay so you're saying yeah even paying them as much as I because I was wondering if we should just make the payment once we have it all no no no no because you're being taxed you're being penalized on whatever you don't pay by April 15 I didn't know that okay I don't know why we didn't do that like well we didn't know that so okay okay pay as much as we I might be able to I think we could have half by April good and then the other half already quick and it's out of your way and then fix this so it never happens again by starting to behold on yourself okay so would you recommend an envelope for that or for the monthly from now on or just between now and then for monthly for now on once this called grand no I would just say heard open a little separate account separate savings account and when you pull money out