Angelo Campanella <a.campanella[at]att.net> wrote:
- quote -

I disagree with that statement. The OP stated that the
"other" income was from books that he/she wrote and other
sources. Without detailed knowledge about all of that
income, one cannot say whether they would be eligible for
deductions for expenses incurred to generate that income or
subject to an additional SE tax. The OP is clearly not
knowledgeable enough about tax laws to do it herself.

--
-Ernie-

"There are only two kinds of computer users -- those who have
suffered a catastrophic hard drive failure, and those who will."

Have you done your backup today?

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- quote -

The "deferment" (actually, an extension) is only for the
filing of your tax return, not the payment of tax.

Last year would have been a much better time to seek out a
tax professional. He/she could have recommended setting up
a retirement plan for the $40,000. You may have to prepare
Form 2210 to see if you owe underpayment penalties (again,
another thing that proper planning would help you avoid).

Preparing a tax return is the easy part. Good tax PLANNING
is what sets the pros apart from the amateurs.

Tax planning and preparation of tax returns isn't rocket
science, but then neither is dentistry. Do you drill and
fill your own cavities?

Gary

--
E-mail to the above address is rarely read. If you want to
contact me directly, please send an e-mail to: gary at
gdgoodman dot com.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Thalia wrote:

- quote -

Pay it straight out, as you have calculated it (check your
figures).

If you pay up now, you stop the clock as far as pentalies
that might occur. You never know, and the IRS does "the best
it can" (in thses Bush II years). Usually, they produce a
credible bill.. Anyway, you can quibble with them on it next
summer.

The only thing in additional work you could do right now is
to compute the penalites that are possible to occur. That's
also the only benefit of a tax accountant at this point.

Figuring their fees these days (approaching those of
lawers), I personally take my chances with the IRS (whose
ssalry I have already contributred to).

Angelo Campanella

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

- quote -


- quote -

You should request an extension, Form 4868 (Federal) and the
equivalent state form and pay the estimated tax due. Then
go see an TAX accountant.

I have to say that accountants are thought of as "numbers"
people but that this is really a misconception. True,
accountants work with numbers but they are not
mathematicians. What makes Tax Accountants qualified to
help in situations like this is their knowledge of tax law,
rules, and regulations. A truly qualified tax professional
will have spent years studying tax matters and had years of
experience dealing with a wide variety of situations. You
would have to spend a lot of time reading tax materials to
acquire an equivalent knowledge.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Thalia wrote:

- quote -

File the "deferment" AND pay.

Send in form 4868 to the IRS and the equivalent to your state.
Send the checks with the forms (if you can). You then will have
time to send in the actual tax forms as they are, or after an
accountant improves things to get a refund.

http://www.irs.gov/taxtopics/tc304.html

- quote -

I don't know, for sure, but since you both have businesses,
I suspect that the accountant will be very helpful.

Newsgroups: us.taxes,misc.taxes.moderated

Hi. My husband has a full-time job, but on top of that, he also
had $40,000 in side money last year on books he wrote. I am a
freelance writer and student and made $8000.

We did not see an accountant this year because we were naive
and dumb. Last night, we did our taxes and realized that we
owe $17,000 ($3000 state and $13000 federal).

Obviously, it's too late to see an accountant. So we need to
decide what the best thing to do at this point. Should we:

A. pay the $17000, and then see an accountant and see if we
could get some of that money back after the fact?

B. File a deferrment and then see an accountant before paying?

C. Something else I haven't thought of?

Also, this may be a naive question, but how much money can a
CPA really save you? My husband works with numbers and we're
fairly sure we did our taxes correctly. I would hate to have
to pay $17000 PLUS the CPA.

Any advice you could send our way would be gretly appreciated.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >