Epic Real Estate Investing - If You Can't Pay Your Taxes, Then What? | 375

Episode Date: April 17, 2018

Today on Tax Hacker Tuesday with Epic Real Estate, Tim Berry and Bernie Garland explain what to do if you can't pay your taxes. Learn all about the IRS's new initiatives, how to qualify for them, and the exact steps you should take if you can't pay your taxes. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Did you know that up to 50% of your lifetime income will be wiped out by taxes? What if you could stop this madness? Isn't it about time you play on a level playing field with the wealthiest 1%? Now you can. Tim Berry, attorney at law, shares here each and every week current tactics and strategies that anyone can implement to hack the tax code. Protect your assets and keep what's rightfully yours.

It's time. for Tax Hacker Tuesday. I owe the work I go. Now, sometimes if you owe the IRS lots of money, we have clients that work two and three jobs because they feel they have to pay at that exorbitant rate. Do you know anything about that, Mr. Tim? Well, the great thing about the IRS is it's a kinder gentler IRS now, isn't it?

It is so kind and so gentle. And so they came out with this. new program, this new initiative, where they will loan you the money to pay your taxes. Because the big thing, and this is what Bernie says all the time, is compliance. That's the buzzword. They want you to be in compliance, and they found that whenever people don't have the money to make payments, they fall out of compliance. Thus, the IRS will give you a payment plan.

And Bernie, what are the typical terms of the payment plans? The payment plan is take a look at what your gross income is, minus your withholding, your SDI, et cetera. take a look at your business and personal expenses and whatever left over, if anything, is what you agree to pay to the IRS. And how about, do they have any streamlined initiatives? Oh, is there anything we can do there? They got a plethora, a plethora of streamline issues.

And what we're talking about is this. Commissioner Schulman, in his wisdom, and I have to say that I really enjoyed working with the IRS when Commissioner Shulman was there, he figured out that if you're not, you owed less than initially $10,000, they would not assign a revenue officer. In other words, the collection specialist showing up at your front door. He simply said, make sure you're in compliance, and make sure you can pay this $10,000 that you owe over a period of 60 months. And this was the initial one. It was 60 months. Then it worked out so well because people want to pay their taxes, but they're afraid of the IRS. So now here is an easy.

plan called the streamlined plan at that time. It worked so well, Tim, it went to 25,000. And if you owe $25,000 and your contact in the IRS because you owe that, you can qualify for the streamlined plan. And guess what happens? What happens? No lien is filed, no wage attachment, and no banking account attachment, as long as you pay that money. Now, it went from 60 months to what? 72 months so as if you owe less than $25,000 less than $10,000

you can control your own destiny and I guess this is what the government actually has loaned you this money that you used but didn't pay and now you're paying it back on your terms not theirs now

there's also a $50,000 time limit and if you owe $50,000 now you're going to submit a couple of financials, but the same thing will apply. So in other words, I don't know whether they're kinder or gentler, but they're kind of more pragmatic. Got it. So bottom line, if you don't have the money, don't freeze, file your tax return. That's super important, and then the government can work out a payment plan with you. Make sure you're in compliance

because we found if you do not understand that you can control these streamlined plans, and most of you owe less than 10, most of you owe less than 25,000, If you do not understand this, you don't file, then you don't file the next year, then you don't file the next year. So it's very simple. File your tax return and set up, at the time you file your tax return, you can set up a streamline plan. It's government loan. That's fantastic thing. And you didn't even have to apply for it.

Yeah. You just institute it, and it's done. That's it for today, as we dream of a tax system that works just for you. But until then, you have Tim Berry. See you next Tuesday for another episode of Tax Hacker Tuesday. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.