A Minnesota real estate investor is confronting a potential financial crisis after failing to file federal taxes for nearly 10 years, despite owning dozens of rental properties.
Investor Admits A Decade Of Unfiled Federal Taxes, Cash Income
On Wednesday, caller Claude reached out to The Ramsey Show seeking guidance.
He revealed he hasn’t filed federal taxes since 2016, even while earning $10,000 to $15,000 per month from rental income.
Claude owns 27 rental properties, most of which are paid off, and recently purchased a home through private financing.
He now hopes to secure permanent financing but faces a roadblock: lenders require proof of tax compliance.
Claude told co-host George Kamel, “I haven’t, I don’t really, on paper, I guess, show making a bunch. Most of that income is in cash and you’ve spent it.”
Ramsey Team Urges Immediate Action To Avoid IRS Penalties
Kamel warned him of the stakes. “The last people you want on your back is the IRS. They can destroy your life. I know that’s right. And so I would not ignore this any longer,” he said.
He also advised Claude to hire a CPA or enrolled agent immediately to assess his tax liability and explore payment plans.
Co-host Jade Warshaw added, “You got to do this with integrity, my guy.”
Ramsey Warns Callers On Tax Compliance And Smart Financial Planning
Callers to Dave Ramsey’s show faced contrasting financial challenges but a common theme: taxes.
Tyler, a Florida moving company owner, reported $1.9 million in revenue and rising profits.
Ramsey advised him to avoid unnecessary purchases for write-offs, focus on paying personal debt, and consult an accountant on depreciation strategies.
In a separate call, a single father earning $80,000 admitted he hadn’t filed taxes in three years.
Ramsey stressed the legal risk, urging immediate action to file, and estimated the man could owe around $60,000 plus penalties.
He emphasized that failure to file, not failure to pay, carries potential criminal consequences.
Both cases underscore the importance of tax compliance, careful financial planning, and professional guidance to protect income and avoid serious penalties.
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