QUESTION
If I cashed out large sum and they did not hold enough federal tax, no state tax and I will be wiped out if I pay, what should I do?
Asked on Apr 25th, 2014 on Taxation - Oregon
More details to this question:
If I pay, I will go on food stamps and Obamacare. Any recourse?
4 ANSWERS
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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Are you talking about state taxes or federal taxes? I presume you are talking about income taxes in any case. You can contact the taxing authority (the IRS or the Missouri Department of Revenue) as see if each organization will allow you a "payment plan." Normally, you can arrange this and make payments on the unpaid taxes. If, however, you miss a payment, you run the risk of a levy - i.e., they simply take the money owed out of your bank account, if you have one. If you do nothing, the IRS will do whatever it takes to collect the back taxes. The Missouri Department of Revenue will do the same thing so make arrangements right away.
Answered on May 19th, 2014 at 3:24 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Generally, the IRS and the Ohio Department of Revenue will let you pay over time.
Answered on Apr 30th, 2014 at 5:20 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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Pay now. Do not delay. It will only get worse.
Answered on Apr 28th, 2014 at 1:59 PM
What happened to the rest of the money? If there was no cash to you, you may be able to negotiate with the tax authorities. If you gave it away or spent it, you may have some problems.
Answered on Apr 28th, 2014 at 1:22 PM