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5 Bumps

Just so pissed. Looking for advice or some people who have been through this before. (long)

So the day before Thanksgiving of 2009 my DF's employer announced that they were out of funding and laying off all but my DF and a few others- the few remaining would have their salary changed to hourly, cut back to 20 hours and their status would be independent contractors (1099's- no taxes taken out). Great. So week after week there was some new story about how they may have a new investor, or they would be working on a way to sell ad space, or some other way of generating income. None of it ever happened.

My DF, being the guy he is, wanted to see the company through it. He had faith that something would come along (because his bosses said that they were genuinely working hard to find funding).

A whole year later- nothing. In the meantime I get pregnant (I have a job, but have accrued a large amount of debt trying to make ends meet while his job goes through all of this).

DF finally gives up on that job and starts another where he is an actual employee and not a contractor. Then yesterday we bite the bullet and file taxes. He owes over $5k that they say has to be paid in 3 years. So he chose a payment plan of $300/month. We can't afford that. I'm due in May. We need a new car (like one with air bags). We are still playing catch up with debt from this whole year of him being put on part time contract work.

I'm at a complete loss of what to do. I am just so pissed at his old boss for stringing him and the others along like that for over a year. They wanted to stand by him and by the company. They wanted to do what was right. Meanwhile the boss was driving a god damn Audi!

Answer Question

Asked by meandrphoto at 10:40 AM on Apr. 7, 2011 in Money & Work

Level 22 (13,914 Credits)
Answers (12)
  • You'd be surprised how many bosses or owners of companies would string along people. I would contact the IRS and see if there is something else you can do. We had to pay 500$ for paying off a debt, and they took it out of our taxes this year. You will incur intrest until then, but better then 300$ a month!

    Answer by BabyBugsmama at 10:45 AM on Apr. 7, 2011

  • hugsthis really sucks i don't really have advice on how to fix the money situation but maybe you could have family members help out with the baby needs to take some that stress of you? i hope that you get this situation worked out i will be praying for you!! try and relax as hard as that seems to do right now you don't need any extra stress being pregnant.


    Answer by amberpaiz at 10:46 AM on Apr. 7, 2011

  • Just to clarify- I understand that he should have been putting money aside for taxes. They are his taxes and they need to be paid. I really do get that. But the last time either of us worked a full 1099 job you could file taxes and have 8 years to pay them. Now that is reduced to 3. None of this is what either of us expected and I have half the mind to send his former boss a bill.

    Comment by meandrphoto (original poster) at 10:47 AM on Apr. 7, 2011

  • The IRS no longer messes around with tax debt. They will take your car, your furniture, whatever you have to settle the debt, interest and penalties. pay them as soon as possible anyway you can. Do Not Mess with the IRS.
    Tell him to keep looking for work, GL
    Oh and don't worry about what the bosses and busines owners are doing until you are a business owner yourself.
    If DF worked without a contract, he had the choice to leave anytime he wanted so it was basically a mutual agreement until it finally just didn't work out.

    Answer by jewjewbee at 10:47 AM on Apr. 7, 2011

  • Not an ideal choice but you could file for bankruptcy. In New York, as long as you pay something on your debt (like credit cards or medical bills) they can't send you to collections. Find a "pay here" car dealership and find a safe vehicle with a warrenty. Most places like that have a small down payment and monthly payments are 150-200 with no interest. Apply for food stamps and medicaid for insurance. It might not feel good doing this stuff, but you do what you gotta do for your family. Let me know if you need any more advice!

    Answer by Kari727 at 10:48 AM on Apr. 7, 2011

  • ^^^
    Worsts advice I've ever seen. OMG

    Answer by Anonymous at 10:52 AM on Apr. 7, 2011

  • Well, anon, since you are so quick to judge advice lets hear yours.

    Comment by meandrphoto (original poster) at 10:54 AM on Apr. 7, 2011

  • Oh that sucks but i'd definately get the IRS paid off before buying a car... their penalty and interest rates are unbelieveable and they say it's because they are NOT A BANK. Contact them and set up a payment plan STAT. Good Luck to you.

    Answer by Kristen1010 at 11:41 AM on Apr. 7, 2011

  • Okay take a deep breath,, I had a major tax issue and consulted a CPA,, I was missinig alot of deductions that I should have taken, mileage, computer etc,, that reduced the tax debt by half, I then asked to pay about 100 per month, and the following year I had them withold as many taxes as possible, I changed to a non-1099 job. I then told them to keep my tax return. Now I want to know is this for the past year? Taxes are not even due until April 18th,,so you could file an extension until I believe July,, that might buy you a bit of time to get your ducks in order and put aside some to make the payments.. but if your hubby was self employed, please have someone re-look at your taxes... good luck, it sucks,, I know! But hopefully if you change your with-holdings to 0, and can work out something with them for lower payments, you might get enough back next year to satisfy the debt...They are aggresive but will work with you!

    Answer by kimigogo at 11:51 AM on Apr. 7, 2011

  • Thank you, ladies. It just seems like he is being punished for trying to be loyal to his employer. I will get him to get in touch with a CPA and in the meantime see what we can do in terms of assistance.

    Comment by meandrphoto (original poster) at 12:40 PM on Apr. 7, 2011

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