Hello Deacon – I don’t want you to keep thinking getting this EIN number doesn’t make a difference. You don’t understand what can happen here, so I want to tell you about my experiences recently. You’re going to change your mind about this number when you read what’s been happening to me.
I previously reported that I’ve had an EIN number for decades with no repercussions of any kind. I don’t use the number for reporting income tax, and the only thing I’ve done with it in recent years is furnish it to some MSPs.
Well, I was just hasty and wrong. I’ve recently had all sorts of issues arise because I got that EIN number. It took a while for events to develop.
The first thing that happened was that I was contacted by Parker County Precinct 2, and that organization informed me that since I had an EIN number, they were authorized by law to park their road graders and paving equipment in my front yard when they’re working in this area. Also, the workers would be parking their pickups on the lawn under the grove of oak trees at the southwest corner of my property, where they will take breaks and lunch times.
I was told up front that any trash found on my property or in the road ditch at the front of the property will not be theirs and will have been cast off by some irresponsible hick driving down the road. I didn’t find this acceptable, but since I had the EIN number I knew there could be no good result from taking issue so I sucked it up. During the last go round, they were really sweet to grade off my front yard down to the bedrock in a last minute effort to clean up their mess. I was so grateful. Now I don’t have to water. What a relief, but I’m going to miss my crepe myrtles and the big pomegranate.
I then heard from the IRS wanting me to file 941s on my employees, and insisting that these reports had not been filed for several years and if I refused to comply, they would be assessing steep fines which would be due immediately or interest would accrue, plus more penalties and more interest. I had to hire employees in order to be able to meet this requirement, and since I can’t use employees to assist me on my mystery shops, I had to set up an entirely different home based business and create working space in my home for these employees. I decided to make cookies and praline candies, as I aspired in the past to be the Parker County Pie Lady but pies are so much trouble I backed off to cookies and candy. I know you cooks out there understand.
After I started selling the cookies and candy, I heard from the Texas Department of Health that I was making unlicensed food in an unapproved kitchen inside a private home and using employees who hadn’t passed the health inspection. I would have to completely remodel a room, which would cost me $68,000, in order to build a separate kitchen to pass inspection so I could sell the candy and pralines, which I was making because I had to hire employees because the IRS insisted I report on Forms 941 because I got the EIN. I also owed a lot of money for fines assessed in connection with my many mistakes. Would this nightmare ever end? No.
I then heard from the State of Texas Employment Bureau and they wanted to know where were the State reports on the employees listed on the Federal reports, and where was the money they were due for unemployment benefits contributions . What! They also wanted a copy of my employee compensation insurance policy, which I should supply right away. If I did not have this insurance, I could purchase it locally with no problem. I checked on the insurance and for my few employees, it was $23,846 annually. This was in addition to the money I owed the state for unemployment benefits contributions. I took out a bank loan, for which I had to mortgage the back pasture. Would this nightmare ever end? No.
I was originally told that my new $68,000 kitchen looked like it might pass the final inspection, but no, wrong again. The state inspector said he appreciated my efforts but he wasn’t entirely satisfied because I hadn’t ripped out the original hardwood flooring and installed a hard tile that could be washed down with disinfectant or cleaned with a steam cleaner. He said since I had some acreage, the best thing to do was build a separate building and he would work with me diligently to be sure that it met specs for making cookies and candy. In the meantime, I had to shut down the cookie/candy business, but I couldn’t let my employees go because I had to keep them to report on the 941 federal form.
I whined to him all this had happened to me because I innocently and ignorantly applied for an EIN. He said, “ Oh yes, I see, I’ve heard about that number, oh well.”
I asked what I was supposed to do with the new $68,000 kitchen I had installed on the upper level of my home specifically to meet state requirements for making cookies and candy, and he suggested I remodel that whole area into a separate apartment which I could probably rent out for as much as $450 a month.
I investigated this possibility and found a remodel of the entire upper level would result in my plumbing, septic, and electrical systems having to be brought up to current code. Additionally, the well was too close to the septic and a new well would be required 1,000 feet north of the old well. This would require the purchase of the property adjacent, which was a bargain at $412,000. Also, the remodeling already done had already resulted in a tax reclassification of the property. I would no longer qualify for the over 65 tax break or the homestead exemption. This was the first thought I’d had that all this remodeling was going to hike my school and county taxes through the roof I could apparently no longer afford. What!
I said that I had no idea what I was going to do. Getting this EIN number had caused me to have to start a new business, hire employees, lose my front yard, build a new kitchen that wouldn’t pass inspection, take out a loan on the back pasture, essentially triple property taxes on my original property, and buy an entirely separate property for $412,000.
In response to my incessant whining, the state inspector stated that he was not actually involved in every level of my problems and he was only on site to tell me the kitchen I had built would not do.
So, you see, Deacon, this quagmire has a life of its own and its growing bigger and bigger. I hope that you and some of the other shoppers out there can provide pertinent observations that will be helpful.
I’d like to get out from under this number, but I understand there’s no divorce. Too bad and so sad. Well, bye for now. I’ve got to get some work lined up for tomorrow. That pasture loan payment I took out is coming right up, and who knows what else. Not me. I don’t have a clue.
Mary Davis Nowell. Based close to Fort Worth. Shopping Interstate 20 east and west, Interstate 35 north and south.