How I Owed The IRS $50K
I’ve been working as a truck driver for over 30 years.
I love being able to drive around the country and be my own boss. And it’s nice to work as an independent contractor, except when tax time comes around…
It’s so confusing to try to fill out my tax return and I’m always afraid I will end up owing a bunch of money I don’t have.
I tried using Turbo Tax and going to H&R Block for help, but it takes so much time and effort, plus I still have to worry about having all my receipts and 1099s.
About 5 years ago, I was hauling back-to-back loads across country. I picked up a bunch of extra shifts to pay for some repairs to my house and treat my family to a special summer vacation to the Grand Canyon. Tax time came and went before I even realized it was April.
Around the truck stops, all I ever heard was how bad it was to not file your taxes and how much more money you would owe because of the penalties the IRS added to your account.
I kept putting off doing my taxes out of fear that all that money I worked so hard for would end up going to the IRS instead of my family.
When the next tax time came around, I was afraid to file in case the IRS noticed I didn’t file last year. This continued for several years, and I still didn’t get anything from the IRS.
Then, I was hit with a humongous bill — $50,000!
I was used to getting a refund or at most paying $500-$1,000 per year, so I thought at most I would be hit with a $5 or 10,000 bill.
To get a bill five times as much seemed outrageous!
There was no way I could pay the whole $50,000 without going into major debt.
The IRS started coming at me hard, threatening to garnish my wages or enact a levy on my property. I felt completely helpless and scared.
I didn’t know what to do.
Then, I saw an ad for Fidelity Tax Relief. They said they could help me settle my tax debt and even reduce how much I owed.
I called them up and told them my situation.
They investigated my history and found the IRS had filed a substitute for return, or “SFR”, in place of my returns for all those years I did not file.
When the IRS did this, they did not calculate any of my deductions or credits I got every year; instead, they simply filed using the standard deduction. They also did not have the full information on my income, either.
This, along with the penalties and interest, brought my debt up to the overwhelming amount of $50,000.
My case manager at Fidelity took all of my information from those years I did not file and submitted a revised tax return that included the correct income information as well as all the deductions and credits I qualified for.
Once they had calculated everything, the IRS ended up owing me money!
I was no longer in danger of losing any property. It turns out that submitting a real tax return significantly reduces your tax liability compared to what the IRS files for you.
I took my tax refund and went to Disneyland with my family. I am so thankful to Fidelity for helping me out. I used to live in fear of the IRS, but now I am completely compliant with my taxes and do not have to feel like I am constantly looking over my shoulder, afraid of the taxman coming.
My representative also counseled me on how to prevent this from happening again. I am never going to let the IRS file my returns for me, since it only ends up helping them, not me. Calling Fidelity was one of the best decisions I made!
If you owe the IRS or State back taxes, call Fidelity at 1-844-278-0108 and we’ll give you an honest assessment of your problems or complete the form here for a FREE Case Review.