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 on baby step number 2. But I assume I should pay taxes before everything else, correct? Um, do I put ledger house? What is your household income pre-tax? It's 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. 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...
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Video instructions and help with filling out and completing Are Form 843 Taxpayers
