Q: In 1997 I bought a hot dog cart for my wife to make some money. Let’s just say big mistakes were made. She worked only six weekends at baseball games.
I found that she kept no records of sales or purchases. When it came time to file state and federal taxes, I panicked and haven’t filed since. I am so scared to find out what the IRS will do to us. What can we do? — Reader, via email
A: I doubt seriously if there is much of a problem with the little amount of money that she had in terms of revenue for the few weeks that she sold hot dogs. More important is the fact that you haven’t filed regular taxes since that time.
What you should do is contact a CPA who specializes in tax matters or an enrolled agent. He or she can catch you up by filing the back returns. If you are employed and there was money taken out of your pay, it’s entirely possible that you will have some type of refund coming, depending upon the specifics of your circumstance.
Q: I was reading an article about being wary of credit repair companies. Does this also include nonprofit organizations like Consumer Credit Counseling Services? This is the company that contacts credit card companies and negotiates settlement figures at a lower interest rate, and sometimes even a lesser amount than owed.
I owe approximately $10,000 in credit card debt. I have thought of bankruptcy, but would like to avoid it, if possible. I am 65 years old and now collecting Social Security and can only work part-time. — T.A., via email
A: The Consumer Credit Counseling Services have earned a very good reputation. These organizations will do their best to negotiate legitimately with credit card companies, and depending on your circumstance, possibly lowering your interest rate, extension of terms, etc. I have no problem at all recommending them to people.
There are other companies out there that are also good. But I continue to say that if a company wants money up front, forget it.
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