When penalties for late payments are killing the industry...

Anybody suffer the wrath of over penalization from state and federal institutions?

I run a small operation in Washington state, we do a lot of sub work for larger contractors that sell, but do not install, TPO/PVC systems, in doing that I was shorted on a job during Christmas time, $4,000.00 or so, being as my new insurance premium is due and everything is "f"'d up I have to use a bit of the Department of Revenue's cash....no big deal...if they want anything I have to stay in business period, logical right? Anyway it is only about $4,000 in sales tax but add on the compounding interest and it rapidly became over $6,500.00. What does this extra money go to? To stimulate things? The governor's stimulation? I undestand the concept of teaching people the lesson to not be late but to exact that amount of money seems to be extortion

I am sure this is a small scale in what many of you have seen...but a fellow roofer was eaten alive by L&I, the state Gestapo that charges about half of what I can afford to pay employee's so that when they get hurt they can be denied benefits...I have had seizures from a medium grade fall and had my state labor and industry case worker tell me they weren't going to pay me,,,,etc.....At what point does the government realize it's own hypocrisy in destroying the fabric of our country, when the blue collar worker was the American hero not the target of over taxation and soon to be psychotic government warranty inspections and mandates...whos pays for this? Senators that receive pay for life for doing a lousy job in the first place? What are they going to do tomorrow?

all the Czars and federal control it is feeling a bit ruskie... it's no wonder that the majority of my Veteran customers want to pay cash, all of my retired customers are saying "F" the man...what is going on out there? Anybody find this sub-culture of responsible Americans that no longer feel like the rules apply to them? Hey I guess I started a new topic.... ">>>

The one thing that would tick me off as a businessman in Pa. was to pay the state in my behalf an unemployment compensation tax. During bleak times especially in harsh winters,unemployed workers could collect a check - but not the owners. Never had to use it, just griping about unfairness.>>>

Woody,

I use the 1 1/2% interest charge also and you are right, that "waive the late fees" does work wonders at times. The state now limits us to 1/3 deposit 1 week before start, so I ask for 1/3 on first day and balance on day of completion. Of course there are those who just happen to have sent the check book to work with the husband/wife, or I forgot to transfer the funds. They are the ones that get a "friendly reminder" in 15 days with the offer. I do collect the late fees occassionally but since we make every effort to be payment on completion, there are not that many to collect from.>>>

We used to charge 1 1/2% per month late charge. I've never had that many customers that it applied to and only about half of them paid the late charges, but it came in handy to say "if I can get a check right now, I'll waive the late charges.">>>

We always put a contingency on the side based on our accounts receivable, that way we were always able to pay our taxes, we wern't to worried about the suppliers only taxes, insurance and labor.In turn we started to charge for late payments and that turned out disastrous when the customers did not pay, we even explained to the accounts that they were receiving the price based on their abliity to pay the good ones paid and the bad ones left to try to fleece some one else.When the industry is slow is the time to watch for the dead beats., no one said that it is easy to be in business lol Just remember this little saying " Anybody can run a business when you have money, running a business without money becomes a challenge, and those who do, do, and those who can't, go to work for someone else.>>>

Yeah Mike most taxes do that to me. The only ones I like , if that is even the word . Are the ones that I can see working and doing good for me and the people of my community . All the crap . Sucks. They are stealing from me. Who wants to support thieves ?? Not me. So the thieves throw me in jail or I live under a bridge If I don't . It is a screwed up thing>>>

No employees in 10 years, I guess. Still have to file quarterlies. " None " gets written on them. Quess how many times I've forgotten to file, at $10.00 each, + interest.>>>

The "new" tax for in Michigan goes like this...How much did you take in? Pay that amount! Simple!!>>>

In Pennsylvania there is a 6% sales tax paid on goods. There is an additional 1% tax in 2 counties. No tax is paid on installations. If you purchase something from out of state and are not charged sales tax, you are expected to report it on your Sales & Use Tax forms and pay the state tax on it. Depending on your tax status, you pay some taxes quarterly, twice a month and some that are paid weekly or every 2 weeks. Then there are some that are paid semi-yearly or yearly.

I keep a chart of what is supposed to be paid and when. It does get quite confusing.>>>

Mike I got curious . Looks like the kiwis have had some tax reform . :ohmy: http://en.wikipedia.org/wiki/Taxation_in_New_Zealand>>>

It is possible to get some, if not all, of the penalties and interest waived. You have to call the IRS or State (whoever you owe) and talk to them. Tell them why you were late and work out a payment plan with them. Although it does not seem like it, they are not totally unreasonable.

Sad to say, we were late on some tax payments and the penalties and interest were going to kill us. We called and the extras were waived and we were given a payment plan that we could live with.

The taxing government does not want you to fold because of them, they loose too much money that way so they will work with you.

Good Luck!>>>

One thing that annoys me is all the ads for tax resolution services. You know, the ones that claim they can settle for pennies on the dollar. They all have a minimum amount you need to owe, 10 to 15k. Some guy out there struggling to pay back taxes of $8,000 sees the ads and thinks "I need to run my bill up higher so they can save me money.">>>

Economics 101 There are three basic economy's . The first and most traditional is barter . Loosely defined as goods or service traded for same with out money . 2 capitalistic economys systems based upon private property and free enterprise .3 Command economic a system in where the government decides what goods or services to prdouce, how to produce them, and wh to produce them for . It is a major problem paying taxes and paying bills. The thinking you had at the time was a recipe for disaster. As difficult as it may be pay the tax first . I don't like the idea of paying for corruption and waste . I like it lees through steel bars or under a bridge . One of the biggest mistakes made not paying payroll tax. Cash is king for now .>>>

I was in to get a permit a couple of months ago. While I was there, all the overhead lights suddenly went out. Weird feeling. Must have been a power outage, right? (turns out they are motion-sensitive)>>>