I've put it off as long as I can. It is time to gather all the papers, fill out all the forms, and get my tax crap over to the accountant. Why do I have a tax accountant, you ask? It's a long story and lucky for you, I'm about to tell it.
I am basically a law abiding citizen. I'm not gonna lie. There are some laws I break (or at least I did when I was still driving) on a regular basis. I always looked at the speed limit as a suggestion. Fortunately, only once in my life did that misconception come back to bite me in the butt. Amazingly, I only got one ticket in 45 years of driving. Oh, yes, I deserved many more. But they didn't catch me, so it doesn't count. There are some other laws that in my opinion are stupid. I don't think it's possible to legislate morality and as such I find laws against prostitution and marijuana to be outdated and useless. No, I don't want to be a prostitute --never have, never will. But, if that's what you want to do for a living, there's certainly a large market for your services out there. Do I approve? I don't think my approval or disapproval is pertinent. Aw, crap. I'm off on another tangent and way far away from where there post is supposed to be headed. *Throws lasso around midsection and starts to reel self in.*
Okay, back to being law abiding -- as such, I file my tax forms every year like a good American citizen. I don't do it happily, because I think the tax laws are way too complex, confusion, convoluted, circuitous, complicated and corrupt. But, I have always believed if there is one branch of the U.S. Government you do not want as your adversary, it is the IRS. As near as I can tell these guys don't have to report to anyone. They seem to be an autonomous group, with their own rules, their own laws, and their own way of dealing with situations. I mean seriously, think about it. The only way they could get Al Capone was on income tax evasion. But once the IRS got involved, poor Al was dead meat. Before we owned a house, filing taxes was easy. It took about 20 minutes to fill out Form 1040EZ and send it off. We always got refunds, because both of us let the U.S. Treasury department hold on to some of our money interest free for a year. After, we bought the house, the 1040EZ was history, and we were into Form 1040. Still, it was a piece of cake. I'm a fairly smart cookie, and I can add and subtract, so it wasn't too much trouble to fill out the form. The hardest part was keeping all the proper documentation. At one time many years ago, all the state sales tax you paid was a valid deduction from your federal tax, as long as you saved all those stupid receipts to prove that you actually paid that much tax. Slowly, over the years, the deductions have been eliminated. Once TurboTax came out, it was really a breeze to fill out the forms. Then it became possible to file online and get your refund deposited directly into your bank account, so the whole process, though never enjoyable, was at least better than a root canal. Bud and I still allow the government to hold on to some of our money interest free each year, because we think that is preferable to paying. Unfortunately, we've had to pay and that is always a painful and ugly experience.
I know an astoundingly large number of people who have come to be on the wrong side of a disagreement with the IRS, and yes, we are among that group. Several years ago when I had my mid-life crisis, instead of buying a hot little sports car or having an affair with a hot younger man, I decided to change careers. I'd been in administration from the beginning of my working career (starting as a secretary and working my way up to one of those positions that never seems to have an appropriate title). But, I had also been fortunate to be exposed to computers very early on (first contact was 1966) and had opportunities to grow and learn as the computer industry took off. I was enthralled with computers and just seemed to be able to suss it all out without very much effort. So in the mid-1990's, I decided I wanted to work with computers for a living. I was already doing a lot of training others on the computers where I worked, and I was often involved in setting up the network and determining needs. I went back to school to get some official training, since everything I knew was self-taught, and set out in search of a job where I could use my skills. Of course, I knew it was not going to be easy for a woman in her 40's with a completely administrative background to find a job as a computer technician, but I'm seldom deterred once I've made up my mind. And, find a job I did. A close friend of ours had an acquaintance who owned his own IT consulting firm and who was in need of help. Don't ever let anyone tell you personal networking is useless. A casual meeting was arranged. We talked. He made an offer to take me on part-time, and I jumped at it. After a few weeks, my new found friend started making noises about hiring me full-time. Well, I still had my old job (where I'd been for 18 years) and I was committed to working at least 20 hours a week there. I didn't think I could go full-time at another job too. Plus with my old company I had health insurance, life insurance, a 401(k) and other benefits amounting to over $10,000 annually. Finally, he came up with an offer that got my attention -- part ownership in the company.
It was one of those opportunities you just can't ignore. If you say no, you'll kick yourself in the butt for the next 20 years for passing up what may have been your one chance to get it right. If you say yes, and it doesn't work out, you've just thrown away a whole lot more than just time. I said yes. There was so much I didn't know about about being an owner of a company. I worked my patootie off, but I learned the hard way, that is not always enough. Actually, I should have done a great deal more research into the company before I made my decision, but hindsight is 20/20. I was not aware, for example, that the company had not been paying taxes for quite some time. I guess as the minority shareholder, no one thought that was information I should have. I'm sorry if that sounds bitter, but there may be a few sour notes in this tune. The company eventually failed. It did not go out in a splash, but in a small whimper that barely made a ripple, except in the lives of those who were intimately involved in it. As it turned out, because I was on the books as one of the owners, and because the taxes had not been paid, the IRS thought it was perfectly reasonable to come after me for payment of those back taxes. My "business partner" conveniently disappeared off the face of the planet for awhile, but the IRS eventually found him and went after their pound of flesh from him as well. Fortunately, since I owned only 20% of the company, I was responsible for only 20% of the unpaid taxes. Still that was a pretty nice chunk of change. Bud and I set up a payment plan with the IRS, but they still placed a lien on our home just in case we decided to try to evade payment. And, that's where the tax accountant came in. He was actually the accountant to whom the company had turned for monthly reports and such when I refused to be responsible for that part of the business (after seeing what shape the books were in). So, he was aware of my delicate situation and immediately starting amortizing my business losses as a result of the company going under. My tax situation had obviously gotten more complex than me and TurboTax alone were going to be able to figure out.
It's been several years now. The IRS has been paid off and it was such a gigantic relief to get that off our backs. We are still deducting a portion of the business losses, so I just gather all my paperwork together and dump it on the tax accountant to let him figure out what to do with it. At first, I hated the concept so much that I delayed taking the paperwork to him until a week before the return had to be filed. That is really a very bad thing to do to a tax accountant. Then for a few years, I just delayed and delayed and delayed and got extensions and finally would get around to filing about October or so. But we always ended up paying when I did that, so I had to get my act together and start getting the paperwork in on time. Last year, he sent Bud an email and told him our stuff had to be in by the end of February. I knew what he was doing, but I went ahead and accommodated him anyway. Now we have another smaller mess with the IRS, due to our own stupidity, so we end up owing again. But it won't be nearly as bad as last time, and soon we'll be back in good standing.
And so, tomorrow I'll take the time to organize all the paperwork and put it neatly in a folder so Bud can drop it off at the accountant's office. We won't file until April 15th, because I know we will have to pay, but at least it will be completed and waiting for the filing deadline. Then I can quit worrying about those guys at the IRS, who I fear more than any police, FBI, CIA, or even militant radicals. Those guys really mean business.
I am basically a law abiding citizen. I'm not gonna lie. There are some laws I break (or at least I did when I was still driving) on a regular basis. I always looked at the speed limit as a suggestion. Fortunately, only once in my life did that misconception come back to bite me in the butt. Amazingly, I only got one ticket in 45 years of driving. Oh, yes, I deserved many more. But they didn't catch me, so it doesn't count. There are some other laws that in my opinion are stupid. I don't think it's possible to legislate morality and as such I find laws against prostitution and marijuana to be outdated and useless. No, I don't want to be a prostitute --never have, never will. But, if that's what you want to do for a living, there's certainly a large market for your services out there. Do I approve? I don't think my approval or disapproval is pertinent. Aw, crap. I'm off on another tangent and way far away from where there post is supposed to be headed. *Throws lasso around midsection and starts to reel self in.*
Okay, back to being law abiding -- as such, I file my tax forms every year like a good American citizen. I don't do it happily, because I think the tax laws are way too complex, confusion, convoluted, circuitous, complicated and corrupt. But, I have always believed if there is one branch of the U.S. Government you do not want as your adversary, it is the IRS. As near as I can tell these guys don't have to report to anyone. They seem to be an autonomous group, with their own rules, their own laws, and their own way of dealing with situations. I mean seriously, think about it. The only way they could get Al Capone was on income tax evasion. But once the IRS got involved, poor Al was dead meat. Before we owned a house, filing taxes was easy. It took about 20 minutes to fill out Form 1040EZ and send it off. We always got refunds, because both of us let the U.S. Treasury department hold on to some of our money interest free for a year. After, we bought the house, the 1040EZ was history, and we were into Form 1040. Still, it was a piece of cake. I'm a fairly smart cookie, and I can add and subtract, so it wasn't too much trouble to fill out the form. The hardest part was keeping all the proper documentation. At one time many years ago, all the state sales tax you paid was a valid deduction from your federal tax, as long as you saved all those stupid receipts to prove that you actually paid that much tax. Slowly, over the years, the deductions have been eliminated. Once TurboTax came out, it was really a breeze to fill out the forms. Then it became possible to file online and get your refund deposited directly into your bank account, so the whole process, though never enjoyable, was at least better than a root canal. Bud and I still allow the government to hold on to some of our money interest free each year, because we think that is preferable to paying. Unfortunately, we've had to pay and that is always a painful and ugly experience.
I know an astoundingly large number of people who have come to be on the wrong side of a disagreement with the IRS, and yes, we are among that group. Several years ago when I had my mid-life crisis, instead of buying a hot little sports car or having an affair with a hot younger man, I decided to change careers. I'd been in administration from the beginning of my working career (starting as a secretary and working my way up to one of those positions that never seems to have an appropriate title). But, I had also been fortunate to be exposed to computers very early on (first contact was 1966) and had opportunities to grow and learn as the computer industry took off. I was enthralled with computers and just seemed to be able to suss it all out without very much effort. So in the mid-1990's, I decided I wanted to work with computers for a living. I was already doing a lot of training others on the computers where I worked, and I was often involved in setting up the network and determining needs. I went back to school to get some official training, since everything I knew was self-taught, and set out in search of a job where I could use my skills. Of course, I knew it was not going to be easy for a woman in her 40's with a completely administrative background to find a job as a computer technician, but I'm seldom deterred once I've made up my mind. And, find a job I did. A close friend of ours had an acquaintance who owned his own IT consulting firm and who was in need of help. Don't ever let anyone tell you personal networking is useless. A casual meeting was arranged. We talked. He made an offer to take me on part-time, and I jumped at it. After a few weeks, my new found friend started making noises about hiring me full-time. Well, I still had my old job (where I'd been for 18 years) and I was committed to working at least 20 hours a week there. I didn't think I could go full-time at another job too. Plus with my old company I had health insurance, life insurance, a 401(k) and other benefits amounting to over $10,000 annually. Finally, he came up with an offer that got my attention -- part ownership in the company.
It was one of those opportunities you just can't ignore. If you say no, you'll kick yourself in the butt for the next 20 years for passing up what may have been your one chance to get it right. If you say yes, and it doesn't work out, you've just thrown away a whole lot more than just time. I said yes. There was so much I didn't know about about being an owner of a company. I worked my patootie off, but I learned the hard way, that is not always enough. Actually, I should have done a great deal more research into the company before I made my decision, but hindsight is 20/20. I was not aware, for example, that the company had not been paying taxes for quite some time. I guess as the minority shareholder, no one thought that was information I should have. I'm sorry if that sounds bitter, but there may be a few sour notes in this tune. The company eventually failed. It did not go out in a splash, but in a small whimper that barely made a ripple, except in the lives of those who were intimately involved in it. As it turned out, because I was on the books as one of the owners, and because the taxes had not been paid, the IRS thought it was perfectly reasonable to come after me for payment of those back taxes. My "business partner" conveniently disappeared off the face of the planet for awhile, but the IRS eventually found him and went after their pound of flesh from him as well. Fortunately, since I owned only 20% of the company, I was responsible for only 20% of the unpaid taxes. Still that was a pretty nice chunk of change. Bud and I set up a payment plan with the IRS, but they still placed a lien on our home just in case we decided to try to evade payment. And, that's where the tax accountant came in. He was actually the accountant to whom the company had turned for monthly reports and such when I refused to be responsible for that part of the business (after seeing what shape the books were in). So, he was aware of my delicate situation and immediately starting amortizing my business losses as a result of the company going under. My tax situation had obviously gotten more complex than me and TurboTax alone were going to be able to figure out.
It's been several years now. The IRS has been paid off and it was such a gigantic relief to get that off our backs. We are still deducting a portion of the business losses, so I just gather all my paperwork together and dump it on the tax accountant to let him figure out what to do with it. At first, I hated the concept so much that I delayed taking the paperwork to him until a week before the return had to be filed. That is really a very bad thing to do to a tax accountant. Then for a few years, I just delayed and delayed and delayed and got extensions and finally would get around to filing about October or so. But we always ended up paying when I did that, so I had to get my act together and start getting the paperwork in on time. Last year, he sent Bud an email and told him our stuff had to be in by the end of February. I knew what he was doing, but I went ahead and accommodated him anyway. Now we have another smaller mess with the IRS, due to our own stupidity, so we end up owing again. But it won't be nearly as bad as last time, and soon we'll be back in good standing.
And so, tomorrow I'll take the time to organize all the paperwork and put it neatly in a folder so Bud can drop it off at the accountant's office. We won't file until April 15th, because I know we will have to pay, but at least it will be completed and waiting for the filing deadline. Then I can quit worrying about those guys at the IRS, who I fear more than any police, FBI, CIA, or even militant radicals. Those guys really mean business.
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