cash received in '99 and tax return in '00greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
My wife just asked a question about tax due to be paid in 2000. First I looked in the archives and could not find a thread dealing with this, so here goes the question. Do we estimate amount due on our income from savings and pay as we draw this money out? Also we are selling various rental properties. Sounds like we are getting a lot of cash but it isn't, under $100K total. It's like our life savings and worth. How do we take care of taxes NOW so that ITSHTF the IRS won't come back in '00-03 and say we underestimated our tax and we owe $20K. We say, we don't have that much. Do we lose everything? What are folks doing on this Forum for tax you might need to pay in '00 and beyond? Crazy question?
-- PJ (Just@here.com), January 29, 1999
Keep as much money as you can right now. You can pay the IRS after the dust settles, if they're still around.
-- a (firstname.lastname@example.org), January 29, 1999.
To avoid penalties you can have a lawyer keep your estimated payment in trust, payable when they ask for it. Shows you had the intention to pay up, but allows you to control your funds (in case the IRS goes T.U.).
-- E. Coli (email@example.com), January 29, 1999.
Let us use the 100k figure. Say there is nothing paid in taxes this year. Next year when the tax becomes due, how much is the penalty for not paying the estimated taxes?
And what are the chances y2k forces the government to go to some kind of flat tax? Does anyone believe Rossetti that Irs is now compliant? I don't. This year could be the last year for income taxes.
I like E.'s suggestion about the lawyer...but can I reclaim it from the lawyer whenever I want?
-- I'm (firstname.lastname@example.org), January 29, 1999.
As I recall, Michael Hyatt said, in a C-span interview, that he'd prefer not to be holding someone else's liabilities (after roll-over).
-- Tom Carey (email@example.com), January 29, 1999.
There ARE old threads -- at the bottom of the main page.
This has been discussed before.
But, for newbies:
Most people do NOT owe ANY income tax. IRS collects, unlawfully, through obfuscation, intimidation, and the complicity and ignorance of the major media.
Are you having trouble getting enough $ for your preparations? Wouldn't an instant 40% (whatever) raise help out? This can be done by stopping withholding and/or not doing quarterly advance payments.
-- A (a@AisA.com), January 29, 1999.
Before anyone gets into this particular can of worms, make SURE that you have a GOOD attorney, who KNOWS the LAW and the basis for not paying and is willing to accept the case. I've known some IRS collections people. Very nice outside of work, but as far as work is concerned, they were very professional pit bulldogs. Chuck
-- Chuck, night driver (firstname.lastname@example.org), January 29, 1999.
I hear Hitler was nice to his mistress, too,
-- A (A@AisA.com), January 30, 1999.