He Built A Million-Dollar Business, Then Stopped Filing Taxes — Dave Ramsey Says '2,561 People Went To Jail Last Year' For That'

Early occurrence tin disguise slow-moving fiscal disasters until they are intolerable to ignore.

Carlos called "The Ramsey Show,” saying his janitorial concern grew into a million-dollar cognition earlier years of unfiled taxation returns, unpaid payroll taxes, and mounting indebtedness near him considering bankruptcy.

"I haven't filed taxes since 2017 oregon 2018," helium told idiosyncratic concern adept Dave Ramsey, saying helium besides has not paid payroll taxes since that time.

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Carlos said helium carries much than $70,000 successful recognition paper indebtedness and owes different $30,000 connected a commercialized enactment of credit.

He said helium took retired a $132,500 Small Business Administration exigency indebtedness during the pandemic aft helium did not suffice for Paycheck Protection Program alleviation due to the fact that his 2020 and 2021 taxation returns were not filed. Altogether, his indebtedness exceeded $350,000.

Carlos said the SBA indebtedness was utilized to support employees connected payroll. Since then, the concern has been reduced successful size. He said helium laid disconnected each employees and minimized accounts, leaving him with 4 oregon 5 locations helium services himself each night.

His monthly gross averages $9,777, portion expenses full astir $7,877, leaving constricted currency flow.

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"941 payroll taxes are not bankruptable and neither is the IRS," Ramsey said, explaining that bankruptcy would not destruct the astir superior obligations due to the fact that payroll taxes and IRS debts stay careless of filing status.

He warned that failing to record returns carries superior consequences, adding that "2,561 radical went to jailhouse past year" for not filing taxes. Ramsey advised Carlos to instantly conscionable with a taxation nonrecreational to statesman filing backmost returns and make a strategy for addressing unpaid payroll taxes.

He added that the IRS typically requires the astir caller 3 years of filings, portion withheld payroll taxes indispensable beryllium handled separately. Ramsey said Carlos should halt paying unsecured debts and nonstop currency travel supra surviving expenses toward the payroll taxes first, past toward backmost IRS taxes.