Results 1 to 3 of 3

Thread: Tax Help Plz

  1. #1
    Curious Guest
    Joined
    Jan 2005
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Tax Help Plz

    hi everyone. I don't know if this topic has been brought up before and if it has i apologize for reposting. I recently worked at a club for 11 months and wasnt aware that the club made us report our taxes until about a week before i quit (xmas eve). Now i have no $$$ for taxes and i am FREAKING OUT i dont know what to do. Not to mention the money i did make i was living day to day on, so even if i did want to save for taxes it would have been very hard. I start a new job cocktail waitressing at a sportsbar tonight but theres no way that im going to be able topay my bills AND try to save up tax money. Any hep would be greatful please. thanks to everyone.

  2. #2
    God/dess Emily's Avatar
    Joined
    Feb 2003
    Location
    Las Vegas
    Posts
    11,302
    Thanks
    4
    Thanked 143 Times in 72 Posts

    Default Re: Tax Help Plz

    you weren't aware you had to pay taxes, or did you just choose to not think about it? It's not the club that makes you report....it's your government!

    anyway, you can take out a loan or pay by credit card. I'm not sure what else to tell you other than start putting away your waitressing money too, because you will go through all this again next year.

  3. #3
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Tax Help Plz

    Cavender, I'm not sure how much money you made during those 11 months, but when the club you were working at sends in a 1099 form to the IRS there is no escaping having to pay taxes on that income. Not knowing how much money you specifically earned, or the state you live in, or your tax filing status, I can only take a wild guess and say that if the club reports $40,000 in earnings you are probably going to owe the IRS somewhere around $10,000 plus you're going to owe your state tax people something additional, plus you'll also owe the IRS penalties for failure to pay estimated taxes every three months throughout 2004. Grabbing a number for discussion purposes let's say you'll owe $12,000 total.

    Now the good part is that the IRS and your state will probably accept a time payment plan for the taxes you owe and can't afford to pay immediately. But the bad part is that they'll charge you interest and penalties on top of the payments. If you are now working at a 'straight job', and receiving a weekly paycheck, the most likely way this will happen is that the IRS and your state will grab $100 a week directly out of your 'straight job' paycheck for the next three years or so. But as Emily and the IRS itself point out on their website, the interest rate and penalties charged by the IRS are generally higher than those charged by banks or even by some credit card companies. Thus if it's possible for you to borrow the money from a bank or charge the money to a credit card or sell something you own (like your car) to pay the IRS and your state tax people ALL of the back taxes you owe them by this coming April 15th, it will probably be cheaper for you in the long run than allowing the IRS to 'finance' a weekly/monthly time payment plan for your back taxes.

    Remember that the IRS and your state are not interested in whether or not it's 'convenient' for you to save up money to pay back taxes. They're not also particularly interested in whether you'll fall behind with your own bills and payments if you pay your back taxes first. In their view, you owe them lots of money, they have priority over any other lender/company that you also owe money to, and they will TAKE what you owe from you one way or another if you don't pay it voluntarily. The only mitigating factor will be leaving you (and any dependents you may have) enough money for food, clothing and shelter. But this will only affect the weekly amount of money they "garnish" out of your paycheck, and less money per week equals more interest and more penalties charged thus many more years of payments. If they get impatient, they also have the authority to freeze and seize any bank accounts you may have, the title to your car, or anything else of value.

    More info at and


    If it's any consolation, you are probably not alone this year in regard to dancers who will be receiving 1099 reports of income during the next month or two. As clubs seek higher profits, their accountants are explaining to the clubowners that by issuing 1099's for the money that the club has paid out to dancers for their 'share" of private dances, champagne room trips etc. that the club can save on its own taxes by transferring this income (as well as the tax liability that goes with this income) away from the club's cash register and to the dancer instead.

    In the way of advice, depending on how much of an 'earner' you were as a dancer, you may want to seriously consider going back to dancing. #1 by not having a weekly paycheck which the IRS can easily garnish, they might be more willing to cut you a 'deal' on the back taxes you owe. #2 by earning more money in a shorter time period as a dancer, you'll be in a better position to pay your back taxes plus pay your current taxes plus stay current with your own bills - or put another way if your earnings as a sports bar waitress don't provide enough to cover your back tax payment plus your current tax withholding plus staying current with your own bills, you're probably headed on the road to bankruptcy (and you can't go bankrupt on back taxes !).

    In any case, this is definitely a situation where you want to use a CPA to prepare your tax return and act as liaison between yourself and the IRS.

    .
    Last edited by Melonie; 01-14-2005 at 03:26 AM.

Similar Threads

  1. Replies: 4
    Last Post: 07-20-2011, 05:34 PM
  2. Replies: 0
    Last Post: 08-30-2009, 05:43 PM
  3. Replies: 2
    Last Post: 11-06-2008, 04:00 PM
  4. Tax Policy Center on Obama and McCain’s tax plan
    By Zia_Abq in forum Member Boards
    Replies: 34
    Last Post: 09-17-2008, 03:10 AM
  5. Replies: 0
    Last Post: 04-14-2006, 11:24 AM

Bookmarks

Posting Permissions

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