Comments on: paying the piper http://thisfish.com/paying-the-piper/ Found the bike. Not changing the title. Mon, 06 Apr 2026 05:54:12 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: shieldvulf http://thisfish.com/paying-the-piper/#comment-33488 shieldvulf Sat, 28 Mar 2009 22:31:40 +0000 http://thisfish.com/?p=1624#comment-33488 <p>I know a couple of things about this that may ease the pain somewhat. </p><br /><br /><p>First of all, the so-called "self-employment" tax is only a wage slave's employer's share of Social Security and Medicare tax. It's not an additional or penalty tax on the self-employed at all. People with jobs pay it, too, in the sense that their employers have to pay it in order to employ them. YOu could think of it as part of the bennie package on a job.</p><br /><br /><p>Secondly (I am prepared for your laughter), the IRS is trying to reframe its relationship with taxpayers. Their current mission statements and strategic chewing gum are all about considering the taxpayer experience and keeping the current crisis in mind as they work with people. They used to routinely show up and seize assets early in a tax debt situation. Not any more. They'll talk to you. Really.</p><br /><br /><p>Cut them some slack when you call, if only because you are probably talking to a new hire. The work is seasonal, so there's lots of turnover. That, and their primary account management software dates from the Johnson administration: all-caps green text on black screens, radical abbreviation unto gibberish, and literally thousands of numerical and initial "codes" for a couple hundred categories that XML could reduce to a handful. So it will take them a few minutes to decipher your information. Be kind, and they will, too.</p> I know a couple of things about this that may ease the pain somewhat.

First of all, the so-called “self-employment” tax is only a wage slave’s employer’s share of Social Security and Medicare tax. It’s not an additional or penalty tax on the self-employed at all. People with jobs pay it, too, in the sense that their employers have to pay it in order to employ them. YOu could think of it as part of the bennie package on a job.

Secondly (I am prepared for your laughter), the IRS is trying to reframe its relationship with taxpayers. Their current mission statements and strategic chewing gum are all about considering the taxpayer experience and keeping the current crisis in mind as they work with people. They used to routinely show up and seize assets early in a tax debt situation. Not any more. They’ll talk to you. Really.

Cut them some slack when you call, if only because you are probably talking to a new hire. The work is seasonal, so there’s lots of turnover. That, and their primary account management software dates from the Johnson administration: all-caps green text on black screens, radical abbreviation unto gibberish, and literally thousands of numerical and initial “codes” for a couple hundred categories that XML could reduce to a handful. So it will take them a few minutes to decipher your information. Be kind, and they will, too.

]]> By: beth http://thisfish.com/paying-the-piper/#comment-33487 beth Fri, 27 Mar 2009 02:10:11 +0000 http://thisfish.com/?p=1624#comment-33487 <p>same thing happened to me as this is the first year i filed a 1099 and have never paid the irs before. not so fun. alas, we are not alone based on the comments above. </p> same thing happened to me as this is the first year i filed a 1099 and have never paid the irs before. not so fun. alas, we are not alone based on the comments above.

]]> By: Tabitha (From Single to Married) http://thisfish.com/paying-the-piper/#comment-33486 Tabitha (From Single to Married) Thu, 19 Mar 2009 22:40:23 +0000 http://thisfish.com/?p=1624#comment-33486 <p>oh man, I feel your pain! My husband is a CPA and even with all he knows about taxes and how we pay them, we still sweat it out every year at tax time to see if we did it right the year before. </p> oh man, I feel your pain! My husband is a CPA and even with all he knows about taxes and how we pay them, we still sweat it out every year at tax time to see if we did it right the year before.

]]> By: Rec(ession)ipes http://thisfish.com/paying-the-piper/#comment-33485 Rec(ession)ipes Thu, 19 Mar 2009 20:11:57 +0000 http://thisfish.com/?p=1624#comment-33485 <p>Uh-oh. My husband was out of work for 6 months last year, did a little freelance work, got hired again in November right before the economy tanked, then just got cut AGAIN when his new company lost a bunch of clients and had layoffs last week. I just assumed we'd be OK tax wise b/c he made so darn little overall . . . Sucks for you and I'm sorry, but thanks for the cautionary tale that's making me look into this!!! </p> Uh-oh. My husband was out of work for 6 months last year, did a little freelance work, got hired again in November right before the economy tanked, then just got cut AGAIN when his new company lost a bunch of clients and had layoffs last week. I just assumed we’d be OK tax wise b/c he made so darn little overall . . . Sucks for you and I’m sorry, but thanks for the cautionary tale that’s making me look into this!!!

]]> By: Tinkster http://thisfish.com/paying-the-piper/#comment-33484 Tinkster Thu, 19 Mar 2009 20:06:18 +0000 http://thisfish.com/?p=1624#comment-33484 <p>Put me in the catagory that didn't think payments to the IRS was too bad either. </p><br /><br /><p>I did freelance for awhile also, but after paying an ungodly sum to the IRS, I got a letter months later that said I still owed. Everybody told me to not get into bed with the IRS no matter what; beg, borrow, steal, etc. Unfortunately said notice was about a month after a major break-up (after 9.5 years), and he kept everything, so I didn't have anyone to beg/borrow/steal from! </p><br /><br /><p>The interest rates weren't terribly heinous or anything, and they were really flexible actually. Basically, you tell them "I can pay $x" (I think the lowest option was $25 a month), and they set it up for however long it would take to pay it off at that amount. There's no penalty for paying it off earlier than that though. However, if you get a refund the following year, they'll pay off what you owe before you get any money back, regardless of if you have a payment plan.</p> Put me in the catagory that didn’t think payments to the IRS was too bad either.

I did freelance for awhile also, but after paying an ungodly sum to the IRS, I got a letter months later that said I still owed. Everybody told me to not get into bed with the IRS no matter what; beg, borrow, steal, etc. Unfortunately said notice was about a month after a major break-up (after 9.5 years), and he kept everything, so I didn’t have anyone to beg/borrow/steal from!

The interest rates weren’t terribly heinous or anything, and they were really flexible actually. Basically, you tell them “I can pay $x” (I think the lowest option was $25 a month), and they set it up for however long it would take to pay it off at that amount. There’s no penalty for paying it off earlier than that though. However, if you get a refund the following year, they’ll pay off what you owe before you get any money back, regardless of if you have a payment plan.

]]>