Why is it so easy for freelancers in the self-employed to get into tax trouble? Can it be easy to get out? Freelancers in the self-employed typically experience higher job satisfaction. However, the downside is those who work for themselves have an extraordinarily high level of non-compliance with the IRS and they get the full brunt of the IRS's attention. Hi, I'm Anthony Parents of IRS medic. In this video, I want to explain just why freelancers get into tax problems, but I'll also share with you the tricks many have used to get out and stay out of IRS trouble. Problem number one: freelancers need steady cash but don't get steady cash. When you work for yourself, if you lose a customer or go out of business, you often don't find an unemployment check. Rather, the government extracts from you regardless of your debt or risk position. Cash flow for many small business owners can be the most important metric. Like cash flow is real scary. Yeah, a level of success can happen, but can be hard to recognize. So many freelancers become very leery or unsure about sending off huge estimated tax payments to the IRS. When you see an operating account looking healthy, the last thing you want to do is empty it by sending it off to an agency that you probably don't feel all that good about. Many self-employed individuals simply can't make the estimated payments they need to because it is just too scary. The key to success is to be disciplined and to make estimated tax payments without thinking about them. A trick can be making estimated payments every month or even weekly. That way, the checks are smaller and more regular, so your emotions are easier to manage. Problem number two: no one to withhold...
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