Paying off back taxes
By Ken McEntee
When Comedian Steve Martin got caught not paying taxes, he had a two-word defense: “I forgot.”
That doesn’t work in real life, cautions Gary Cerasi, CPA, owner of Creative Business Strategies. Tax debt can be a serious matter. Here, Gary explains more.
Q: I got behind in paying my taxes. What should I do?
A: Call the government agency you owe taxes to—or have an expert call on your behalf—as soon as possible. They are willing to work with you, but they don’t like it when you ignore them.
Q: If the tax collectors haven’t figured it out yet, why should I call attention to my debt?
A: The IRS has one of the most sophisticated computer systems in the country. They will find you sooner or later—and when they do they will be a lot tougher on you than if you had come to them for help to make the situation right. When you’re proactive, you have a chance to make a better deal. I have negotiated hundreds of payment plans over my career, and the payment plan is always easier if I call the government before they call my client.
Q: Everybody seems to be intimidated by the IRS, but should I be as worried about the state of Ohio, RITA, CCA or other local collectors?
A: Actually, I believe IRS is the easiest of all to work with. The state of Ohio can be very tough, and the local agencies are tired of people not taking them seriously. If you don’t file, you may get a subpoena. If you don’t show up for court, a warrant can be issued for your arrest.
You can learn more by scheduling a no-cost consultation with Gary, at 440-546-9359. Creative Business Strategies is located at 192 East Wallings Road, in Broadview Heights. You can learn more at CreativeBizStrat.com.