The situation
A full-time rideshare driver in California treated his 1099 income like take-home pay and set nothing aside. Over a couple of years he accumulated about $41,000 owed to both the IRS and the state, with two separate agencies sending notices and applying different rules.
What we did
- We pulled both IRS and state transcripts to map the full picture of what was owed and to whom.
- We filed any unfiled returns needed to make both agencies whole on compliance.
- We negotiated a federal installment agreement and a separate state arrangement that, together, fit one realistic budget.
- We set up quarterly estimated payments so his gig income would stay current going forward.
The outcome
Both the federal and state balances are now under coordinated, affordable plans that account for each other rather than competing for the same dollars. The driver stopped receiving enforcement notices and finally has a single, sustainable monthly picture.
Two agencies, one budget
IRS and state tax authorities act independently. Coordinating both resolutions ensures the combined payments are actually affordable instead of overlapping into a crisis.
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About these stories
Illustrative client scenarios based on common case types. Individual results vary. These scenarios are composites drawn from common case types we handle at US Certified Tax Services; they are not specific named clients and are provided for illustration only. Outcomes depend on your individual facts and IRS determinations. For a review of your situation, request a free consultation.