Tax debt can occur for any number of reasons. Certain types of workers, for instance, are more likely to slip into tax debt than others. Those who work as independent contractors are a good example. That’s because they commonly calculate their tax liability incorrectly and so fall into tax debt. Independent contractors are those who receive Form 1099 at the close of a tax year. Unlike employees, independent contractors do not have tax automatically withheld at every pay period. Rather, independent contractors are in charge of calculating and withholding their tax burden on their own. This extra responsibility can often be daunting. It’s all too easy to look at this week’s bills and pay them, rather than the taxman that’s not knocking on the door or threatening to turn off your cellphone service. Consequently, it’s very common for independent contractors to accumulate back tax debt. The same is true for small business owners, for all the same…
Read more detail on Recent Tax Law posts –
