Tuesday, December 30, 2008

Negotiations with the IRS and Self Emplloyment

Negotiations with the IRS are difficult to establish as a self-employed individual if you have neglected to make Estimated Tax payments within that year. It behouves you to make payments four times a year by April,15,June 15,September 15, December 15. You can either make your entire payment by April 15, or in four installment payments.

When negotiating with the IRS, a licensed professional can have estimated tax payments factored in as a monthly expense, which will help to lower your Monthly Disposable Income considerably. If you are not currently making Estimated Tax Payments, in order for the IRS to negotiate a resoluiton, they will require you to do so. The IRS deems you as being complaint going forward, placing their faith that will stay current on paying your medicare, social security payments.

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