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Mind Your Business

Mind Your Business Week of 2-5-2014

Pay who you owe

United Airlines dealt a hard blow to the Cleveland economy by cutting 470 jobs. These are hard working people trying to provide a living for their families. Along with all the talk about losing jobs from banks, clinics and hospitals, now we have the airport.

Do we provide a safe haven for people who are trying to make a living the honest old fashion way, blood, sweat and getting up every morning? When you think about all these factors, what comes to mind? I need money to survive and I am sure you do too.

Without the jobs, people can’t pay off their loans, mortgage notes, taxes etc…They may not have the ability to eat. So it makes me wonder. Why hire someone to do a job and, when they finish it, they have to get a lawyer to fight for their money.

If you are an auto mechanic, you will pay him or you won’t get your car. But some will spend the money then say, “I can’t pay you.”

Why would you go into a place like Fredericks Wine & Dine and sit down and eat and drink and then try to slip out without paying?

They have bills to pay and even pay the person who waited on you and pay for the food you ate and your drinks, why act like that? The economy is getting worse and young people who already think we owe them something really may take up life on the streets since many can’t get an honest job.

My mother taught me to pay your bills and keep your credit good. In this day and age, many young people are not even thinking about buying a house and many are going to car lots paying cash for a car and everything else they need.

Not many are going into banks and asking the personal banker for a credit card loan or to refinance their home because that’s not where their heads are. Are we our brother’s keeper? Or do we sit in an office or at home and figure out how we going to make them look stupid by making fun of them or back stabbing them?

In this day and age, they offer a lot of financial literacy classes because it’s clear most have not had training when it comes to dealing with debt. If you’re in debt, then you’re probably one of these people and it’s time to figure out what steps you need to take to get out of debt.

The point to this whole story, pay what you owe. If somebody works for you or the company you represent, pay them. There are always ways you can get things done, remember when most people used layaway? Pay on it for three months before getting it out.

Well just think of ways you can make these things happen, even when it comes to paying your taxes. If you can’t pay in full within 120 days, you may be permitted to use the web-based Online Payment Agreement to apply for and receive immediate approval to make monthly installment payments. There are a few conditions. First, you must have filed all of your prior years’ tax returns and pay a user fee of $105. You’ll also pay the IRS interest on the unpaid balance, which is currently an annual rate of about 3 percent.

When you request a short term extension or a payment plan, the IRS will send written confirmation so you’ll know your request has been approved.

You’ll pay penalties and interest on the taxes you owe until a payment agreement is paid off. However, depending on your individual circumstances, the IRS could offer a payment plan at a reduced interest rate. Also, as a condition of the installment agreement, any future tax refunds will be automatically applied against the amount you owe until the balance is paid off.

Since the IRS charges a user fee for setting up a payment plan, it may not be the best option if the amount owed is less than $2,000 and you know you can pay it off in less than 120 days. Also keep in mind that, if you opt for a payment plan that is longer, you’ll have to pay all future taxes in full and on time.

So, while making financial decisions in your life, make sure you take the right steps for your future.

Follow me on twitter @JimmyWadeIII

Write Wade at the Call & Post, 11800 Shaker Blvd., Cleveland, OH, 44120, or e-mail him at jwade@call-post.com.