Clark Howard: Coming Clean with the IRS

[Rianne]

I just started listening to his radio show. A caller, who had not paid taxes in 3+ years, wanted to know what the IRS will do if he contacts them and comes clean.

Clark said (paraphrasing) if it's not in the $100K range, they'll set up a payment plan that's affordable. It's not that big of a deal.

I recall my DB getting audited and it was a big deal. He was an average earner $90K, he worked in sales. His house was a nightmare of receipts and ppwk all over the place. He was sweating bullets and his CPA was helping get through. This was some years ago. Maybe things have changed.

We always overpay. Now DH has consulting LLC, we prepay the full next year (not in quarters). I have this memory of my DB and fear the IRS.

 

[ExFlyBoy5]

My MIL/FIL have a number of businesses and have been audited 3 times in the last 10 years. It is always a huge pain and while they haven't found any actionable issues, takes up a lot of time (and $$$) to deal with. I would do everything possible to avoid that pain...

 

[Spock]

IRS Updated Voluntary Disclosure Practice
https://www.irs.gov/pub/spder/lbi-09-1118-014.pdf

 

[Rianne]

IRS Updated Voluntary Disclosure Practice
https://www.irs.gov/pub/spder/lbi-09-1118-014.pdf

Great resource! Thanks! Audits seem so much more stressful. That gov.doc basically says if you're at fault in filing, there's a remedy if no other criminal charges. So if you intentionally don't file for several years, IRS will work with you.

 

[Gumby]

I can see the practical benefit of having people come clean, but it's hard for me to work up much sympathy for people who don't pay their taxes.

 

[Bamaman]

I used to see my take home paycheck to be half what I made--after 401K, insurance and taxes. My SIL had an independent garage and he spent cash like it was burning a hole in his pocket--working hard to avoid any kind of tax.

But when he died of multiple myeloma at 50 years old, he left his wife and 3 kids homeless and suffering. Paying taxes and taking care of business honestly is a big part of being legitimate. And I have little regard for those that try to beat the system.

 

[jazz4cash]

Why is this thread titled "Clark Howard"?

 

[ERD50]

Why is this thread titled "Clark Howard"?

+1 It really helps to have titles that reflect the substance of the issue.

Is Clark Howard the subject here?

-ERD50

 

[Aerides]

If the OP would like, or if someone has a good suggestion, we can certainly update the title. I'm not sure at first glance here how to title this thread as it seems to be a little bit of a stream of consciousness.

Taxes, underpayments, overpayments, etc.?

 

[REWahoo]

How about "Clark Howard: Coming Clean with the IRS"

 

[ERD50]

How about "Clark Howard: Coming Clean with the IRS"

I kind of like "a little bit of a stream of consciousness".

( From Aerides earlier post, if that was lost.)

-ERD50

 

[W2R]

I can see the practical benefit of having people come clean, but it's hard for me to work up much sympathy for people who don't pay their taxes.

+1

I have to admit that I really can't understand that mindset. But then, I also can't understand why some people park in front of the door at a convenience store, instead of parking in the marked parking spots. It must be the "J" in my INTJ personality.

How about "Clark Howard: Coming Clean with the IRS"

I vote for this one!

 

[Walt34]

I can see the practical benefit of having people come clean, but it's hard for me to work up much sympathy for people who don't pay their taxes.

I have an idiot nephew who has been sued by the State of Maryland five times (last time we looked) for nonpayment of taxes, which he eventually did pay. In addition to late fees, court costs, etc. It wasn't that he was trying to hide it (that kept him out of jail) but he just ignores the bills until he can't anymore.

One has to wonder what people like that are thinking - do they think it will just go away?

Oh well, back to the original topic. Whatever that was.

 

[Rianne]

How about "Clark Howard: Coming Clean with the IRS"

Ok, can you change the title? He provides all kinds of advice and thought if it changed direction, we'd stay in the Clark Howard way of thinking. I like the way he approaches complicated issues respectfully and is never judgemental. I should have said that in my initial post. Maybe "Advice from Clark Howard?" He covers safe ways to pay bills online, CC deals, how seniors get baited into giving their savings away, CCR's, long term care insurance...etc. The IRS advice surprised me.

 

[MichaelB]

Ok, can you change the title? He provides all kinds of advice and thought if it changed direction, we'd stay in the Clark Howard way of thinking. I like the way he approaches complicated issues respectfully and is never judgemental.

He can't, but one of the moderators can.


Done