Self employed questions

[billybob37]

We filed at the beginning of December. Lost my job in July and started my own business in August. We got some paperwork in the mail today from the trustee asking for all kinds of items since I am self employed. They want financial statements for the last 12 months, bank statements, plus alot more. They want us to show copies of checks where we paid our quarterly taxes. I am kind of worried because we have not filed our quarterly tax payments because we really needed every penny to live. We planned on doing it when we file our regular taxes. I am going to make an appointment with my attorney to go over some things. Do you think there will be a problem since we have not filed our quarterlys? Our individual tax returns are all up to date.

[Minnymouth]

You really need to talk to your attorney about your business taxes......
Quarterly taxes are just what they are - PAID QUARTERLY........

Some new businesses pay their taxes on a monthly basis for a while before they are allowed to pay quarterly.....

Now you are considered delinquent on your taxes also as well as being in cc debt...

The Trustee is asking for information regarding EVERYTHING so as he can get a clear picture of your exact financial situation.

Yes, its time for a powwow with the attorney regarding your business issues............. since your living off the money from the business for your personal expenses....

[krielly]

Not all businesses are required to report quarterly. It can be largely dependant on your type of business, whether or not you have employees, and the amount of income generated.

Your accountant is the proper person to ask those questions of.

My DH was self employed when we filed as well. He was required to file quarterly returns for payroll deductions (witholding for his employee) only, and income and expenses for the business were on an annual basis. Prior to having an employee he was NOT required to file quarterly (he could, but did not have to).

Again, these are questions for an accountant.

PS: Past due taxes CAN be included in your 13. We included past due witholding , and PHEW, what a relief. I was scared to DEATH of the IRS. Nice to know we are square with them and all legal and stuff By the way, penalties & interest were also included in that amount. As it turned out, the base amount was considered "priority debt" and paid at 100%, the penalties and interest were considered "unsecured debt", and the IRS receives the same percentage on that portion as our other unsecureds do. Good luck!

[jnjw]

I'm self-employed as well, but whenever we met with our atty initially, all of those items (12 months of bank statements, etc.) were already on the list for us to turn in. There wasn't any mention of quarterly tax payments on there, that I can remember, and I haven't been asked for those yet by the trustee.

I have been self-employed for over 5 years now and have never paid quarterly taxes. We always get a huge refund every year, so what my husband pays in taxes out of his checks always covers what I would have owed plus a whole lot more because of my business deductions.

I thought you only had to pay quarterly taxes if your tax liability for the year would be over $1,000, and if it's under $1,000, then you can pay the taxes when you file your return?

[Minnymouth]

It may be the state tax that I'm thinking of that has to be paid quarterly..... our state is one of them...... and I'm sure each state is different...

Also the laws for Federal may have changed a lot since I was in business. Back then you paid all taxes quarterly, federal and state and some states Sales Taxes were filed monthly.

[billybob37]

I have no employees. It is just me. Last year when I filed my taxes I had a regular job and my tax was under $1000 so maybe that would be the case this year since income will be less than last year. So maybe I will not have to pay quarterly.

[jnjw]

Yeah, the state tax may be different. I don't pay quarterly state taxes either and we always owe state tax, but it's minimal and we just pay that when we file our return.