Three Reasons a Self-Employed Person Needs to Consult an Attorney about Income Tax Problems

Posted on: 6 September 2022

There are many reasons why an individual can find themselves with a tax problem. The one area that tax attorneys often see issues is with those who are self-employed, especially those who have become self-employed for the first time. If you are such a person, the following are among many reasons you should consult a tax attorney.

You just received a tax bill for estimated taxes owed base upon last year's large income

Perhaps you haven't filed your taxes since you've been self-employed. The Internal Revenue Service has taken all the information they have on record about you and filed a tax return for you. The problem is that you were making more money when you were a wage earner. Now, being self-employed, you aren't making much money at all. So this tax bill you received, is inaccurate and is something you cannot hope to pay. Sure, you should have filed your taxes, but you likely were focused on getting your business going and didn't think it was a priority.

You haven't been filing your quarterly estimated taxes

You have been self-employed for some time now, but you haven't filed your quarterly estimated self-employed taxes. Perhaps, you didn't know what this was. Once you have a tax preparer calculate your current and back taxes owed, you find that the amount is beyond what you can pay. Maybe you can pay the current tax bill, but nothing from the past. Once you are in this type of situation, you can be stuck there for many years to come. A tax attorney may be able to help with a solution that stops this from becoming a perpetual and compounding problem.

You haven't filed your taxes for several years, as a self-employed person

You have spent your entire working life as a wager-earner, always working for a business that paid you a check and took taxes out for you. At the end of the year, it was simple to go to a local tax preparer, and have your taxes figured for you, or did the tax filing yourself. Because you weren't in the habit of being responsible for collecting your own taxes, you haven't been doing it. You haven't filed nor paid. Now, enough time has gone by that when you have your taxes done, you find that you owe a small fortune. Before your IRS problems mount, consult an attorney.

If you have been sent a bill from the IRS, then you should consult a tax law firm such as IRS Trouble Solvers, LLC to find out your available options.