The Older Man

Sitting at his kitchen table, the older man picked up the newspaper, on the front page in bold letters was a reminder it was tax day, the deadline was   midnight, and if they were late the individual would be in trouble with the IRS. This branch of the government is the most feared and the horror stories people have heard send terror through the public. It always puzzled him how rumors could hold so many people hostage, as in the past he owed the government money and was unable to pay. He dealt with the government at this time and discovered the IRS was not the Boogey Man or a mythical monster, which swoops down and seizes all your belongings. In order to avoid the same mistake, he has a tax consultant prepare his returns and her counsel has always been beneficial.

Sitting there, he remembered that time and thought it would be a good thing to pass on to his friend Steven who always waited till the last minute. It all began when the older man owned a business, which failed and owed the government a large sum he was unable to pay for that tax year. He discovered the quickest way to get in hot water with the IRS was to not file taxes. He filed and shortly after received a notice telling him how much he owed and three options to make payment. The three options consisted of the following: first, pay the debt in full, second, make monthly payments-which was based on your income and third, a hardship option which would reduce the debt. It was important to call and discuss each option with an agent. The IRS agent he spoke with was very helpful, polite, and informative. The older man choose the second option, received his payment book in the mail, and if for any reason he was unable to make a payment, and an extension could be granted. He made payments for five years, continued to file yearly and if he was due a refund, it went toward the back taxes. He paid his debt in full and has not had any problems since.

The other information he would pass on is if you do not owe the government money, you don’t need to file by the 15^th of April, as the government cannot charge you interest and penalties on money they owe you. However, if you owe, make sure you get it there by the 15 as the penalty and interest starts accumulating from that date. Extensions are not for the ordinary citizen but for corporations and people who have large investments. A three-month extension brings a false sense of security to people as they think they have three extra months to gather the money – however, interest and penalties begin accruing on April 15.

The last bit of information is about being audited. This brings fear into the hearts of those who have experienced it. The older man has not, but one of his friends has and told him it was painless, and the only reason he had one was due to an error on his return. The most common mistakes people make on the return is not signing their name, or mathematical errors. If, per chance an audit is in your future, remember do not panic the IRS agent is after criminals not an honest citizen. Getting up from the table, the older man headed for the phone in the bedroom to call Steven, as he was sure he had not started his returns and this information might save him a lot of mental anguish. Dialing the number, he was glad he would be able to help a friend.

With kindest regards, Judowolf