I THINK I'M IN TROUBLE; PLEASE HELP

[unpopular]

You people are blowing this so far out of proportion. It's absurd. Talk to a lawyer, they prob won't charge for a consultation. Go to legal services if you qualify. If you're just making enough to pay the bills, you probobly don't actually owe anything aside from maybe a stiff fine - which they will likely work out some kind of payment schedule - just like any other fine which you can't immediately pay.

There is NO NEED for you people to stress this woman out any more with goofy advise like "leave the country". Just take care of business, pay what you owe, and make sure all your paperwork is in order for the future. It's a big deal, yeah, it is illegal. But there is no need to freak out until you have all the information.

 

[Bitter Jeweler]

Tax problems? Ask a photography forum! They'll know! And it's FREE!

 

[Bitter Jeweler]

For what it's worth...Local tax authorities tend to be the worst. You'll also have to deal with the Feds.

Both organizations will charge you penalties, they may wave some, but not others.
You can easily set up payment plans, but be realistic in what you can pay.
If you don't pay your minimum, you will be assessed more penalties.
The Feds charge a fee for setting up a payment plan as well.

Your problem now, since the locals know, you will have to pay estimated taxes.
I don't think there is a way around it, because they charge penalties for late payments.
So your problem is compounded because not only do you have to pay past taxes, you also have to save up for,
and pay estimated current tax.

In my experience, the feds won't force you to pay estimated taxes. But you still need to save money up to avoid
being hit again all at once.

 

[MLeeK]

Do you really think "LEAVE THE COUNTRY" was a serious suggestion? If you can't laugh as the sh1t hits the fan, life is gonna get pretty damn depressing.

 

[Bitter Jeweler]

So, what did you find out, OP?

 

[bennielou]

I have no idea why people would think this is a fake question. This happens all the time. I don't think the OP is talking about Federal Taxes which is often confused by State Sales Taxes (which are garnered by the County, which is I think what the poster is saying).

I've warned people about this more times than I can count, because I do see it happen ALL THE TIME with people, but I think there is STILL a ton of confusion about Federal and State Sales Taxes. Here is a brief intro into the difference:

1. You pay your Federal Income Tax once a year based on your yearly income.

2. Your State Sales tax depends on the state you work from, and you pay that every three months based on your overall photography sales including products.

That's about as simple as I can explain it.

As I've warned NUMEROUS times, the States are wise to photographers. They know that people buy a camera, set up a website, and sell photography under the table. They know these photographers aren't paying state sales taxes. (That's the 4 times a year one). The do google searches for photographers in the county, and if they aren't registered they find you. Maybe not today, but eventually. Actually you want them to find you as soon as possible, because the penalties and interest are WAY more than it would be Federally.

You will not go to jail, but you will have a lien put on you. If you own anything, they will take it if you don't pay. They will look at all future income and seize that. You will have your bank account taken over. They do not care if you are a single mother. They do not care that you are a nice person. They do not care that you didn't know. They do not care.

And I'm not being an a$$hole here: I didn't know any better either several years back and had to pay a 5 figure settlement in 30 days to save my property. Fortunatley I had the money. Most people don't and that is why I type my fingers off trying to warn people. Unfortunately people think it's just a scare tactic. You prove that it is not. Within the past few years I've seen this happen to at least 20 people I know, and that is ONLY the people I know that have told me because they know that I went through the same thing. They wanted advice.

My advice would be to do things right in the first place. But if you were ignorant to the tax codes, then go and plead your case to the tax athorities. They won't take much off, but they might take some off.

Best of luck.....

 

[2WheelPhoto]

I'm in Tampa too, and folks the local "gubment" doesn't miss their share of the take on small business.

Or anyone else, I have to pull a permit just to replace a window in my house.

 

[bennielou]

I'm in Tampa too, and folks the local "gubment" doesn't miss their share of the take on small business.

Or anyone else, I have to pull a permit just to replace a window in my house.

The city (or county in this case) miss nada for long. Either your neighbor rats you out (or competitor) or you get found out some other way (like websites), but eventually you will be found out.

Do I agree with craploads of taxes? Oh hell no. But it's the law, and until it changes, I have to do what they say or lose all my stuff. I have to pay permit fees which I don't agree with, I have to get my homeowners association to tell me if my fence is ok, which I don't agree with, I have to do all kinds of stuff I don't agree with, but that is the way it is.

Being ignorant about it, or acting like it doesn't exist, or not agreeing with it will not help you when it happens to you. They want their money, end of story. They don't care what you have to do to get it.

 

[gsgary]

Does anyone know if the **** has hit the fan yet ?

 

[bennielou]

You people are blowing this so far out of proportion. It's absurd. Talk to a lawyer, they prob won't charge for a consultation. Go to legal services if you qualify. If you're just making enough to pay the bills, you probobly don't actually owe anything aside from maybe a stiff fine - which they will likely work out some kind of payment schedule - just like any other fine which you can't immediately pay.

There is NO NEED for you people to stress this woman out any more with goofy advise like "leave the country". Just take care of business, pay what you owe, and make sure all your paperwork is in order for the future. It's a big deal, yeah, it is illegal. But there is no need to freak out until you have all the information.

I agree that she just needs to talk to the tax authority and perhaps a free legal person.

However, from experience, at least in my situation it was what I owed, plus a 28 percent fine and several thousands of dollars in penaties (I'd made quite a bit of money and it was based off of that), payable within 30 days. (That was AFTER my tax attorney and I met with them).

While I don't agree with the "Leave the country" advice, I think it's best at this point just to take it. Really, she has no other choice. Lesson learned. I know I learned my lesson. This is EXACTLY why it's important to inform photographers. It is also exactly why it's a bad idea to disregard the advice that MANY people all over the internet have warned of. We all think it won't happen to us. Maybe we just didn't know any better, and that is why it's so important for us to warn people and talk about it BEFORE it happens. (And it's not realistic to act like this is no big deal).

I honestly feel sorry for this lady. I've been there, and it sucks beyond sucking.

But at the same time, this should be a wake up call for a lot of photogs thinking they can just slide it all under the table. Someone has to be an example. (I, this poster, and thousands of others are just such an example).

The best thing we can do is to warn others who maybe don't understand.

 

[bentcountershaft]

If anyone wants to "call troll" or in any other way alert the site moderation to possible suspect content please use the report post button; rather than accusations in the thread itself. Not only is there a good chance that the mods might not see the thread and the posts; but it also means that you don't, inadvertently, insult new members to the site.

Totally calling troll on this post.

 

[Ryan L]

What I heard through from a friend of mine Bonita Bitrell...is that the OP was paid a visit by some suits. I think she be wearin a pair of cement shoes. ..but i ain't one to gossip, so you ain't heard that from me!

 

[andywag]

Whether the OP is real, a troll, just a plain idiot or not it at least highlights one thing.
That is that just having a Dslr and calling yourself a business because you take a few snaps for your friends for a few dollars, is potentially full of pitfalls.
How many thousands of other photography "businesses" (i.e. newbies with a camera) could potentially fall into this area.

I have absolutely NO sympathy for the OP or for anyone else who gets caught like this.
If you are going to call it a "business" then you should be aware of any rules and regulations from whether or not a license is required to what if any tax liabilities you may have.

 

[jake337]

I got a letter from my town saying they need me to send in the attached form of all my business earnings and expenses because I did not pay my taxes. I am a single mother and the only way I know how to support my children is thru photography. I have a studio but I mainly shoot outdoors since the weather here is gorgieous almost year round. My business is not registered and I never payed taxes and I don't have a license. What do I do please help. I don't want to go to jail and I don't want to lose my business.

Oh my. If you never registered or pay taxes, then you technically don't own a business. So you do not have a business to lose.Start over. Do it right from the beginning. Good luck tax evader.

 

[Bossy]

Yay old thread