ARE YOU KIDDING ME?????????

[TulipsAndSunscreen]

So I posted a few days ago that our new accounting firm messed up my local withholdings and I owed $260 in the next two paychecks for a "true-up". Turns out, our OLD accounting firm messed up. And hasn't been taking our local taxes out since I moved to Ohio. Not only do I owe the $260 in the next two paychecks, I owe $1,500 in the next month or so to our local government.

I just left our financial guy's office in tears. $1,500? Where the HELL am I going to get $1,500?

He said there might also be taxes and penalties but he'll try to get the accounting firm on the hook for those at least.

I asked him how I could have prevented this. And he literally said "there's no way for you to calculate it because of the way it's withheld only from certain accounts, etc and the fact that it's based on your state wages which are determined by myriad elements, etc, etc." I don't know whether to scream or sob.

Re: ARE YOU KIDDING ME?????????

I am so sorry. That really sucks.

[Momo]

Re: ARE YOU KIDDING ME?????????

I don't know whether to scream or sob.

both!!
I am so sorry to hear that things went from bad to worse...uggh!



You> <former accounting firm

[MrsK]

Re: ARE YOU KIDDING ME?????????

Tulips, are your filing as an OH resident or as a MA resident? If you have not been living in OH full-time, do you have to pay OH taxes for the entire year?

[Bittersweet]

Re: ARE YOU KIDDING ME?????????

Holy cow, does that suck. I'm so sorry!

[Ladybug]

Re: ARE YOU KIDDING ME?????????

If you paid fees for service to your last firm I'd be calling their asses NOW and threatening to get full fees back or suffer legal action.

They're responsible.

[TulipsAndSunscreen]

Re: ARE YOU KIDDING ME?????????

Oh yeah, I asked if we would get anything back from them and the response:

"Well, if we figure out what you're contribution to our payroll fees are (because I'm 1 of 100+ employees), it's like <$20 last year. It's not even worth pursuing that".

If I had known about the local and property taxes here. I would never have bought a house or moved here. I would have kept commuting.

DF feels so badly too because he feels responsible for me even being in this terrible state. My dad (yeah, we heard about him a few weeks ago), said we might be able to borrow the $$ from him but I REALLY don't want to be on the hook to him for that money. Does anyone know if you can take out a loan to pay taxes?

Re: ARE YOU KIDDING ME?????????

I would suggest to the accounting firm that they could make this up to you by loaning the taxes due to you, interest free, and give you two years to pay it back to them or something like that. Their mistake puts a big burden on you. I think they should pay any penalties or interest.

Is the accounting firm in Ohio?

[MrsK]

Re: ARE YOU KIDDING ME?????????

Does anyone know if you can take out a loan to pay taxes?

I don't think so but I think you can make a deal with the IRS to pay the taxes over time.

[TulipsAndSunscreen]

Re: ARE YOU KIDDING ME?????????

The accounting firm is in Massachusetts.

I'm not sure our finance guy would be willing to argue with them to loan me the money. Do you think I could do that myself?

Re: ARE YOU KIDDING ME?????????

I was wondering if that is why they weren't familiar with the local taxes but I would think the software they use could pick that up.

I think it is worth a shot to ask them how they plan to make this right for you. The $1200 loan from them wouldn't hurt them nearly as bad as this is going to hurt you.

Re: ARE YOU KIDDING ME?????????

Does anyone know if you can take out a loan to pay taxes?

I don't think so but I think you can make a deal with the IRS to pay the taxes over time.

I researched the 'pay-over-time' thing, and it makes more sense to do a low-interest "check" from your credit cards. The IRS "payment schedule" is really, really heavy on fees and penalties. Their own website advises a credit card payment. We paid ours with a 0% for 9 months thing.

I'm sorry you're dealing with this. The property tax in Cleveland Heights is insane, and not that it matters for you, but their schools suck, so there isn't even a good trade off for the high tax rate.

[TulipsAndSunscreen]

Re: ARE YOU KIDDING ME?????????

Not to mention that my kids will never attend those schools since we'll be long gone. AHHHH!!!

Oh, and then there's the 2% property tax you have to pay also. This is insane. I never would have moved here if I knew this. I feel badly saying that to DF but I would have preferred we just rent and then we could have saved a lot of money. I know this feeling will fade but I just feel really upset right now. Hopefully the kitchen will cheer me up on Friday, I'm trying not to think, "I really wish we hadn't touched the kitchen since now we'd have the money to pay our tax bill".

Re: ARE YOU KIDDING ME?????????

I had a lot of the same feelings about CH and our house. I love the old charm, but they have their heads up their butts in so many other ways. Our taxes here aren't even close to twice what they were in CH, and our house more than twice the size, our yard is about 3x's the size, and the schools are FANTASTIC. (And people here whine about the taxes!!)

It will help next year when you get to write off the interest on your mortgage, and your company is actually doing the withholding correctly!! I'm so sorry. FWIW, I'd go the credit card "check" route, and avoid a loan from your dad.

Best of luck to you.

Re: ARE YOU KIDDING ME?????????

I am so sorry that completely sucks. Especially since you hired "experts" to avoid this kind of thing. WTH?