Irs

[Donziweasel]

Due to the fact that my company is an S-Corp, when it makes money, as the sole stock holder, I owe money. Bummer. This year I ended up owing a lot, more than I had on hand. I called the IRS and was pretty shocked by the help I got. The lady was very nice, put me on a payment plan that I got to name how much in monthly payments I would make. Overall, it was a great experience and they were very helpful.

The last time I dealt with them was in 1997 and they were rude, unhelpful and basically told me tough! Man, what a change since then. I am sure some of you might have had bad experiences, but I am still kinda in shock of how well I was treated. If you have had bad or good experiences, I would like to hear them just to see if I am the rule nowadays, or the exception.

[chappy]

I had a similar experience. In '03 I had a staff member who owed about 3k in back taxes. I called the IRS for him, and was asked how much he could afford per month. He settled on $150 per month. I was surprised with how courteous the person on the other end was. The only stipulation was that I was told that if this person missed payments, there would be "Serious consequences". I was told that there are so many people who don't make the effort to pay back taxes, that even a small effort to make good is well received.

Rich

[LKSD]

Do you guys pay qtrly or years end?? I used to do years end, but rather than being unpleasantly supriesed I just send in estimated qtrly payments so that I will either owe nothing or only a little bit.. I figured I would divide what I owed last year by 4 & throw a little more in then my years end wouldnt be too bad at all.. :) Jamie

[Donziweasel]

I do years end one lump. I should start doing quarterly as the company is making good money and I will probably get hit again for 2007. Damn, success can be expensive!:bonk:

[chappy]

I pay once at year's end. Keep the money in a separate interest bearing account, and have a general idea what will be owed for the year. Just resist the temptation to use it for something else so you don't get caught with your pants down and owe a lot more than you have.:bawling:

Rich

P.S. Just be sure to estimate taxes like Washington Mutual appraises homes, a little high.:biggrin:

[wrussellw]

Being a CPA, I think I have experienced just about everything possible concerning the IRS, well until the next situation.
First most of the agents are decent overworked, under paid government employees. They also have the problem of being feared and out right hated by the general public.
A little kindness and courtsey will go along way when dealing with them.
If you are not getting what you want or the issue is complex, best advice is consult with a professional (CPA or tax attorney). The process it put immediately on a more level playing field. Many times an issue can be resolved with a few simple phones calls.
They are also evaluated by how effective they are in closing/resolving cases, so if you make it easy for them, they will be much more pleasant to deal with.
But don't kid yourself there are bad apples out there. If you feel you are dealing with one get help.

FYI. The payment of estimated taxes on a quarterly or yearly basis is a little more complicated than doing what you feel is best. Lots of payment/under payment penalities to consider.

[Donziweasel]

I agree about the attitude with IRS people. The lady was not overly freindly at first, but I was very polite, said "yes, maam" ( I am still southern), and was nice. She opened up and even joked a little.

She said I could pay as little as 300.00 a month, and I owe a lot!( I mean ALOT!) I told her thank you, but no, and I would rather pay four installments over four months. She said fine, put me on hold, came back saying it was all set up and I would recieve a statement for my first payment next month. No liens, threats, etc....

I guess the old saying is true "you catch more bees with honey then vinegar".

My company CPA does the company and my taxes and I then I have an independent CPA verify everything. Everything seemed to be on the up and up.