Tired of getting 1099's and filing Fed and State taxes

[BFrank]

A friend of mine is helping people set up NM LLCs. The great thing about NM LLC's is that there is no filing requirements and is totally seperate from yourself. His website is http://notax.us I am just learning here, let me know what your thoughts are, thanks.

[jkr]

sound interesting...does it work?

[BFrank]

absolutely, give him a call

[Zippyjuan]

IRS on them: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Single-Member-Limited-Liability-Companies

Of note on a quick read:

In August, 2007, final regulations (T.D. 9356) (PDF) were issued requiring disregarded LLCs to be treated as the taxpayer for certain excise taxes accruing on or after January 1, 2008 and employment taxes accruing on or after January 1, 2009. Single-member disregarded LLCs will continue to be disregarded for other federal tax purposes.

A single-member LLC that is classified as a disregarded entity for income tax purposes is treated as a separate entity for purposes of employment tax and certain excise taxes. For wages paid after January 1, 2009, the single-member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes. A single-member LLC is also required to use its name and EIN to register for excise tax activities on Form 637; pay and report excise taxes reported on Forms 720, 730, 2290, and 11-C; and claim any refunds, credits and payments on Form 8849. See the employment and excise tax returns for more information

This seems to say that an individual is still responsible for their excise and employment taxes as of 2009 even in an LLC but perhaps somebody can explain it better.

[AlexAmore]

Holy shit it was SM LLCs this whole time....I've been going through Google only finding New Mexico LLCs. Fuck.

[BFrank]

You manage rather than own, keeping you seperate.

[angelatc]

A friend of mine is helping people set up NM LLCs. The great thing about NM LLC's is that there is no filing requirements and is totally seperate from yourself. His website is http://notax.us I am just learning here, let me know what your thoughts are, thanks.


If your friend is telling you that NM LLCs don't have to file income taxes, he's lying to you.

[Tod]

"Death and Taxes"

[Keith and stuff]

Who pays taxes and why? Let me propose something bold. Live free. Just do it. It isn't that hard and it works!

Yes, yes, when I drive I pay gas taxes. But that is rare and often the place I work pays that. I walk, carpool and ride a bike as much as possible.

[phill4paul]

Who pays taxes and why? Let me propose something bold. Live free. Just do it. It isn't that hard and it works!

Yes, yes, when I drive I pay gas taxes. But that is rare and often the place I work pays that. I walk, carpool and ride a bike as much as possible.

Two years running no fed income tax. Never again.

[Keith and stuff]

Two years running no fed income tax. Never again.
Keep it up! What about state income taxes, though? State sales taxes? State property taxes? Stop paying. Be free. Do it sooner rather than later!

[PaulConventionWV]

Keep it up! What about state income taxes, though? State sales taxes? State property taxes? Stop paying. Be free. Do it sooner rather than later!

Uh, sales taxes are included in the prices. How do you plan on avoinding those?

[PaulConventionWV]

Keep it up! What about state income taxes, though? State sales taxes? State property taxes? Stop paying. Be free. Do it sooner rather than later!

That seems awfully risky to me. What you are advocating could get some people in trouble. Are you sure that's what you want to do? My dad got screwed by the IRS when he was younger and I'm determined not to make the same mistake.

He stopped withholding income taxes from his paychecks and the IRS came after him. How does that not happen to more people? Was my dad just unlucky?

[otherone]

He stopped withholding income taxes from his paychecks and the IRS came after him. How does that not happen to more people? Was my dad just unlucky?

The IRS couldn't care less if you minimized your withholding taxes as long as you ponied up the cash due on April 15th.

[Keith and stuff]

Uh, sales taxes are included in the prices. How do you plan on avoinding those?

We don't have sales taxes were I live.

[Keith and stuff]

That seems awfully risky to me. What you are advocating could get some people in trouble. Are you sure that's what you want to do? My dad got screwed by the IRS when he was younger and I'm determined not to make the same mistake.
Are you serious? You almost sound like a statist, sorta. We don't have sales taxes where I live. Or income taxes. And only those that want to pay property taxes. I mean, if you love to pay taxes, have at it. But seriously, you expect me to pay BS taxes even though I'm in New Hampshire? That's crazy. I'm not gonna pay. Not 10 years ago. Not now. Not ever!

[PaulConventionWV]

The IRS couldn't care less if you minimized your withholding taxes as long as you ponied up the cash due on April 15th.

He didn't. But why did they come after him for it when other people apparently get away with it?

[PaulConventionWV]

Are you serious? You sound like 1 of the biggest statist in the world. We don't have sales taxes where I live. Or income taxes. And only those that want to pay property taxes. I mean, if you love to pay taxes, have at it. But seriously, you expect me to pay BS taxes even though I'm in New Hampshire? That's crazy. I'm not gonna pay. Not 10 years ago. Not now. Not ever!

Ha. You're calling me a statist for advising caution? Hey, that's great that you don't have any fucking income tax in your state, but others aren't so lucky. What makes you think you can tell us what not to pay when you don't even have income tax? If you're telling us not to pay what you don't pay because you don't have to, then I'm afraid it doesn't work like that. Some people could get in really big trouble unless you know what the f*** you're talking about which, in your case, it seems like you're just advocating tax fraud. Not that tax fraud is bad. In fact, it's commendable, but it's f***ing dangerous when you're just spouting off about being a rebel.

[Carlybee]

I don't particularly want to pay income tax but the IRS has me outgunned. BTW to the OP...there has been a bill in Congress trying to force all entities to get 1099s. I'm not sure if it's still active or temporarily dead though. Given that part of my job is issuing 1099s, was not too happy about the amount of work it would create...from a purely selfish viewpoint.

[Keith and stuff]

I don't have income, sales or property taxes if at all possible.

[amy31416]

Ha. You're calling me a statist for advising caution? Hey, that's great that you don't have any fucking income tax in your state, but others aren't so lucky. What makes you think you can tell us what not to pay when you don't even have income tax? If you're telling us not to pay what you don't pay because you don't have to, then I'm afraid it doesn't work like that. Some people could get in really big trouble unless you know what the f*** you're talking about which, in your case, it seems like you're just advocating tax fraud. Not that tax fraud is bad. In fact, it's commendable, but it's f***ing dangerous when you're just spouting off about being a rebel.

Maybe he intentionally moved there because of that (and other) benefits. If so, that is admirable. It's not impossible to move to NH or a few other states that aren't incredibly terrible yet.

[pauljmccain]

If you think that you can just file in a special way and somehow avoid a boatload of taxes, I have many, many CPAs who would love to learn your secrets.

*rolls eyes*

[Keith and stuff]

Maybe he intentionally moved there because of that (and other) benefits. If so, that is admirable. It's not impossible to move to NH or a few other states that aren't incredibly terrible yet.

We just don't have many sales or income taxes in NH. And for many of us, we don't have property taxes. I chose to live free or die if at all possible when it comes to taxes.

[PaulConventionWV]

We just don't have sales or income taxes in NH. And for many of us, we don't have property taxes either. That's NH for you. You don't have to like it but it's real and I live it. Perhaps I do risk federal laws. I don't care. I chose to live free or die. Maybe I'll go to jail. Maybe I never will. Either way, I'll try to live free, which is further than most people will every claim! It is certainly freer than you are trying to live. This isn't the John McCain/Obama Forum, after all! Nothing personal. I'm not into taxes or government rules. You are likely good people.

I don't care. I'm staying here, but I want to know why some people get away with it and others don't.

[oyarde]

He didn't. But why did they come after him for it when other people apparently get away with it?

I can only guess , but suspect it went like this , he made a change on the with holding , then filed as he would every yr , at which time they calculate what they feel belongs to them and notify you. I have no idea how good they are now , but 20 , 30 yrs ago , if you had your with holding , filed ea yr , got your few dollars refund , and then just did not file one yr because you determined you owed them , you may have gotten away with it....

[roho76]

My 1099's say exempt in the federal, state, FICA, SS spaces. I guess I didn't know.

[PaulConventionWV]

I can only guess , but suspect it went like this , he made a change on the with holding , then filed as he would every yr , at which time they calculate what they feel belongs to them and notify you. I have no idea how good they are now , but 20 , 30 yrs ago , if you had your with holding , filed ea yr , got your few dollars refund , and then just did not file one yr because you determined you owed them , you may have gotten away with it....

Not sure about that, but this was in the 1970s. They said he owed them about $20,000 in back taxes.

[Carlybee]

My 1099's say exempt in the federal, state, FICA, SS spaces. I guess I didn't know.

That just means none of those things were withheld. If there is compensation listed then it was reported.

[angelatc]

My 1099's say exempt in the federal, state, FICA, SS spaces. I guess I didn't know.

That means you're claiming that you're exempt from withholding. Nobody is exempt from filing income/payroll taxes, although if you don't owe, there's no penalty for filing late. But if you're getting 1099's, you owe a boatload of payroll taxes.

Did you see the news about that dentist in Howell, or Brighton? He is going to prison for 5 years and losing everything because they finally caught up with him.

[angelatc]

That just means none of those things were withheld. If there is compensation listed then it was reported.


Yes, and the mesh in the net they cast is getting much smaller every year.

[newbitech]

I don't care. I'm staying here, but I want to know why some people get away with it and others don't.

if enough people ignore something, it becomes a trend. It doesn't make economic sense to spend more money on enforcement than the actual amounts collected. I suspect anyone that owes less than enforcement cost is just unlucky.

[angelatc]

if enough people ignore something, it becomes a trend. It doesn't make economic sense to spend more money on enforcement than the actual amounts collected. I suspect anyone that owes less than enforcement cost is just unlucky.


Assuming that economic sense has anything to do with their policies is where you're wrong. They will come after you no matter how much or how little you owe, because it is about power as much as it is money. And with penalties and interest...even the smallest amounts turn substantial even after a year or two.

They crack down hard, because they the compliance aspect demands that the public fear them.

[PaulConventionWV]

Assuming that economic sense has anything to do with their policies is where you're wrong. They will come after you no matter how much or how little you owe, because it is about power as much as it is money. And with penalties and interest...even the smallest amounts turn substantial even after a year or two.

They crack down hard, because they the compliance aspect demands that the public fear them.

The amount does matter, mostly because it's tied to notoriety. They want people to know the people who are getting caught or else it won't matter to the general public. That's the big dogs spend years in jail when you and I can get away with it. Mr. Schiff didn't get away with it. Kent Hovind didn't get away with it. Ever wonder why?

[angelatc]

The amount does matter, mostly because it's tied to notoriety. They want people to know the people who are getting caught or else it won't matter to the general public. That's the big dogs spend years in jail when you and I can get away with it. Mr. Schiff didn't get away with it. Kent Hovind didn't get away with it. Ever wonder why?

You don't even know why your Dad got caught, but you know everything else about it?

The amount matters as far as the penalties go, but the person i was responding to seemed to be replying that if you only owe them a little bit they won't bother to come after you. That's just not true. They might seize your bank account, your house, or maybe they'll just take it out of any future refund you might have coming, but they will absolutely come after you, even for a seemingly small amount.

I know people who have gotten away with not filing for a while, but I have also seen people get nailed after 25 years, and ruined is the only possible way to describe what happens to them.

[PaulConventionWV]

You don't even know why your Dad got caught, but you know everything else about it?

The amount matters as far as the penalties go, but the person i was responding to seemed to be replying that if you only owe them a little bit they won't bother to come after you. That's just not true. They might seize your bank account, your house, or maybe they'll just take it out of any future refund you might have coming, but they will absolutely come after you, even for a seemingly small amount.

I know people who have gotten away with not filing for a while, but I have also seen people get nailed after 25 years, and ruined is the only possible way to describe what happens to them.

The fact that I can't understand why my not-so-notorious dad got caught does not rule out the fact that notoriety plays a role in who they prosecute. This isn't rocket science, and I never claimed to "know everything else about it". I acknowledge that they can come after you for small amounts, but the amount does matter for notoriety purposes.

[Keith and stuff]

Sorry everyone. I was rude to several people here last night. I'd up rep people but I don't want to violate the RPFs rules, especially after just being rude. I value and respect this community, even if I didn't show it well last night. Sorry. Everyone should do what they do. Different people and ready for different things when it comes to taxes. Just do what you think is best.