DSP's Loan & Savings Company

[NoMoreFarLeft]

So Phil paid his federal back taxes but is not going to be able his estimated taxes. He for sure won't be able to pay his state business taxes for the partial year of 2014, 2015, 2016, and 2017. Washington's government boards say that the tax on the service industry is 0.015% (unless the auditors count it as digital publication/printing which is taxed at 0.035%). The equation is simple if we know what he made but lets throw out a guess like $375k during that period. With that his estimated payment would be $5625 that he owes plus any penalties for not paying.

I would imagine the delay in the state providing a final figure is they have to dive into his taxes. They would need to see if he has been claiming his income as a business rather than an individual that entire time. After providing Phil with that figure, he has 30 days to dispute it legally (which he will) so I imagine they are making their case ironclad. Just a thought.

 

[actually]

So Phil paid his federal back taxes but is not going to be able his estimated taxes. He for sure won't be able to pay his state business taxes for the partial year of 2014, 2015, 2016, and 2017. Washington's government boards say that the tax on the service industry is 0.015% (unless the auditors count it as digital publication/printing which is taxed at 0.035%). The equation is simple if we know what he made but lets throw out a guess like $375k during that period. With that his estimated payment would be $5625 that he owes plus any penalties for not paying.

I would imagine the delay in the state providing a final figure is they have to dive into his taxes. They would need to see if he has been claiming his income as a business rather than an individual that entire time. After providing Phil with that figure, he has 30 days to dispute it legally (which he will) so I imagine they are making their case ironclad. Just a thought.

The services B&O tax rate is 1.5%. I think you just put down the number you would actually multiply with since your estimated payment is right, but I just wanted to make sure it was clear for anyone else reading. One other thing is that there's apparently a B&O tax credit of up to $841 per year. Wonder if you can claim that on past years? If so, that makes his "I paid $5k" statement even more nonsensical.

 

[NoMoreFarLeft]

The services B&O tax rate is 1.5%. I think you just put down the number you would actually multiply with since your estimated payment is right, but I just wanted to make sure it was clear for anyone else reading. One other thing is that there's apparently a B&O tax credit of up to $841 per year. Wonder if you can claim that on past years? If so, that makes his "I paid $5k" statement even more nonsensical.

You are correct to clarify and that was my mistake in not clarifying terms. He hasn't said that he paid $5k towards state taxes though. That was Federal back taxes and the accountant fees that he just paid if I remember correctly. He said he is still waiting for Washington State to complete the audit and he hasn't paid his estimated 2018 Federal taxes.

I don't list the deduction because I don't think he will get it. For one it reads you only get the tax credit if you total taxable income for your small business was below $841. This would benefit Panda's soap business but not Phil's streaming business. Another reason is that there is ample evidence online that he has been trying to game the system. He claimed for years that this was his business and did not do his due diligence in looking up the information to run a business in Washington State. This lead to him frantically trying to claim he didn't have a business once he got caught. He can claim his former tax preparer did not properly file taxes but the liability falls on Phil for picking an out of state actor to prepare his taxes for him. It does not exempt him from avoiding 3+ years of taxes. I think those elements combined would cause him to be disqualified for it because it comes off as him being willfully negligent. Washington could take pity on him but I doubt it.

This picture should cause Phil's nuts to go into his abdomen though. If he qualifies as a business that serves digital goods then the rate is 0.035 or 3.5%. With my guess on income (and it was a very loose one) that would make his tax bill $13,125 before any kind of credit. He is fucked if this is the case.

 

[actually]

I was referring to this line from his Twitlonger posted on the 8th (http://www.twitlonger.com/show/n_1sqgc3j): "The worst part: so far, those State Business taxes I had to pay in January, plus the attorney fees I’ve already paid to resolve that situation, have cost me around $5k."

Even if the attorney fees are like $2k, that would mean he's ALREADY paid $3k in what he calls State Business taxes.

Then, later in the same paragraph, he writes: "OH YEAH: I also am supposed to be hearing from the State of Washington soon when they complete their assessment of how many unpaid Business taxes I owe, and that’s just another thing on top of everything. I’m really hoping they’ll put me on an extended instalment payback plan, but that is still uncertain."

The only way I can read this is that he paid at least a few thousand dollars in STATE taxes just for 2017 and is still waiting on the back taxes to be tabulated?

Lastly, I got the B&O tax credit bit from here, which claims that up to $56,000 of annual business income, the tax credit effectively negates your B&O tax: https://www.washingtonregisteredagent.net/washington-business-tax.html

 

[NoMoreFarLeft]

And my information was based off (https://www.youtube.com/watch?v=XP8C3492nUw) starting at the 2:00 mark to about 8:00. He clarifies his situation as finishing off paying the taxes he owes for last year being $4k and the accountant costing $1k. He makes it a point to clarify that they were 2017 Federal taxes and he won't be in default on those taxes but that he owes $4k more April 17th but makes no mention of the state back taxes he got outed (gouted?) on. At 20:45 he says he doesn't know what his state taxes will be. He says the state should have got back to him by late March or April and that he is still waiting. Hopefully that provides a receipt for my claim. I think the rub is that Phil lies continually in attempt to try and trip everybody up.

As far as the credit goes, it states that if you make below that number in income, you pay nothing. As you go up in income up to $122k, then it slides up to that 1.5% total. He hit that number in 2015 and 2016 so he would get no credit. If he made between $80k and $100k for 2017 then he would pay a portion but not the full 1.5%. And that is if the state awards him that credit.

 

[actually]

I think you're right about his lying and thanks for the info on the tax credit. That makes more sense.

That said, I'm still not sure about the state vs. federal:
"It’s pretty much exactly as I’d expected. I owe a bunch of money (over $4k) for my 2017 Federal taxes by April 17, because I made more money last year than I usually would have. This was greatly in part due to you guys, the viewers and fans, rallying and being super supportive at the end of the year, in order to get me over the State Business taxes hurdle I was facing in January. You absolutely did, but because I made more money than usual, I now owe the IRS about $4k more than I had paid."

I read this as "I was able to pay my 2017 state business taxes, but now I owe $4k more in federal tax".

Then, from his TL;DR at the end:
"Thanks to the help of the viewers, I’m able to pay my 2017 Federal taxes and the tax attorney in full."

So he is able to pay the unexpected overage on his federal taxes courtesy of the money raised in the first 3 months of 2018. So allegedly, all of the state AND federal taxes for 2017 are covered, along with the attorney fees.

Then, the line I quoted before:
"The worst part: so far, those State Business taxes I had to pay in January, plus the attorney fees I’ve already paid to resolve that situation, have cost me around $5k."

So just the business taxes, which were due in January, plus attorney fees, were $5k.

Finally:
"OH YEAH: I also am supposed to be hearing from the State of Washington soon when they complete their assessment of how many unpaid Business taxes I owe, and that’s just another thing on top of everything. I’m really hoping they’ll put me on an extended instalment payback plan, but that is still uncertain."

So he still doesn't know about the back state taxes.

So his twitlonger concurs with the statements that his 2017 federal and state taxes are covered from the video, as well as not knowing about the back state taxes. But it also suggests that he has paid the state taxes for 2017 (which would make sense since he was informed of them in the summer of 2017 and thus had plenty of time).

I tend to trusting his written statement since he tends to ramble and exaggerate and flat lie when he's talking b/c he's a mush-mouthed moron.

Anyway, I think the ultimate conclusion is that he's just a lying turd and it'll be interesting to see how this lowered income plays out.

 

[NoMoreFarLeft]

Anyway, I think the ultimate conclusion is that he's just a lying turd and it'll be interesting to see how this lowered income plays out.

No truer words were ever spoken friend. I appreciate the input, your logic about his twitlonger, and the further digging you did on the tax credit. It would help explain how he was able to handle all of the state, federal, and accountant fees for the end of 2017 if the tax credit at least partially helped him. Every little bit goes a long way. So that would mean he still owes 2015 and 2016 state taxes which is going to be a bitch for him if you are correct. I really hope the state levies his work as a digital good. He deserves to get kerfucked for using people the way he has.

 

[James Smith]

Its possible he has paid some dollar value based on the highest rate times his annual gross income for each year intending to avoid as much additional interest and penalties as he can, and that he is waiting on an assessment of whether or not he owes interest and penalties already, whether or not he owes even more, and whether or not he will get some of what he paid back.

Maybe he had some cash plus some credit limit left and used that.

 

[PantsuParty]

Just thought this is relevant to the topic.

 

[actually]

Tevin got some shit turned around there, but it does serve to illustrate just how unclear Phil's made this. One thing--that $4k estimated tax payment due April 17th (the 1st estimated payment for 2018 ), if true, suggests that Phil expects to earn about $100k in 2018 based on how much he's made so far in 2018 (and presumably somewhat based on 2017, from what I'm reading).

..that seems optimistic, unless his youtube income is way better than a $1 CPM.

 

[HighTierGout]

if true, suggests that Phil expects to earn about $100k in 2018 based on how much he's made so far in 2018

i had my estimative he would get 80k~ yearly, those 20k tips/donations he has gotten last 5 months really helped him, into more debt, bugged begging mechanics

 

[BSV]

Ok so to sum this up. 6 month ago he got hit with state back taxes he was supposed to pay. And these where so imminent it was I need to pay this or else he had to sell his house. It was his old tax attorney that messed that up for him. He only filed the Federal income tax. But by his own admission that was filed correctly. This is something he have been current with and done correctly for all this time. This was never an issue.

In his last update this was all about federal taxes. He claim to still have no number for the imminent state tax issue.

The Raw numbers is easy to have access too. You get a statement from whatever business you receive money from every time you get payed. you also receive a statement at the end of the year with your total yearly income. Even without that you can just add the raw numbers from the total in your bank account. The reason you use a tax lawyer is that some of your expenses are deductible on your taxes. Where I am from those are probably different from what it is in the US. And taxes for a business is different from a private person. I assume that is the same in the US. And I assume you use a tax attourney because you feel there is a need to, that your taxes are super complicated or something. Or you are just really lazy.

That is irrelevant however. Because we don't know the details about how how phil pays himself. But it seem like when he conducts business it's not under the umbrella of some company. It's all connected with his private economy. And that is what he thought he could get away with not paying business tax. If his Connecticut tax lawyer isn't just something he made up, that is the advice he was given. When he was told he had to pay business taxes I think he hyped that number way more then what it really was. I mean we have all seen the Washington business tax rate. It's Not a very big number. I thinks he know exactly how much he ended up paying. And it is probably such a embarrassingly low number that he would rather dodge the question. and try to weasel his way out of it pretending it was about the federal income tax all along. Even though that was never the issue. They have been filed the same way all along. That was never a problem

His story don't make any sense at all. Not even at a surface level. It's just some kafkaesque bullshit that he is trying to make as needlessly complicated as possible. And that is the essence of DSP. Now that the story is falling completely apart, he no longer wants to discuss it anymore.

 

[neger psykolog]

Because we don't know the details about how how phil pays himself.

I'm not sure what you specifically meant by this but my impression is that he gets money through several different methods (PayPal/Bank deposits/Credit Card deposits) and doesn't really just get one pile of money regularly. Its all a confused mess. We know this because he pays for everything using credit and also because he didn't even know how much he was paying on several of his bills until very recently. He has no real "system" of tracking money going in/out.

 

[BSV]

I'm not sure what you specifically meant by this but my impression is that he gets money through several different methods (PayPal/Bank deposits/Credit Card deposits) and doesn't really just get one pile of money regularly. Its all a confused mess. We know this because he pays for everything using credit and also because he didn't even know how much he was paying on several of his bills until very recently. He has no real "system" of tracking money going in/out.

Paypal, Twitch, youtube, and t-spring. It can't be that hard to sum that up and put it in it's appropriate post. If he can deduct anything like on puchases that is business releated he just fills that in somewhere as well. It's not something a normal person would pay an attorney to do.

 

[NoMoreFarLeft]

Paypal, Twitch, youtube, and t-spring. It can't be that hard to sum that up and put it in it's appropriate post. If he can deduct anything like on puchases that is business releated he just fills that in somewhere as well. It's not something a normal person would pay an attorney to do.

This. Phil has a W2 for every income source. By law, these companies have to provide a W2 to each employee, even 1099 contract employees. So he has 100% accurate info of money coming in but Phil has always blown his money. He could do his taxes himself because the formulae for calculating taxes are simple and wildly available. As I said in the past, an accountant would only be useful to find tax deductions and only if said deductions exceed the cost of the accountant's service.

He is fucked though. He let slip there is going to be a 30% penalty on top of what he owes. I didn't figure WA state would go HAM like that.

 

[James Smith]

But it seem like when he conducts business it's not under the umbrella of some company. It's all connected with his private economy. And that is what he thought he could get away with not paying business tax.

I actually wanted to posts this before but forgot:

I think some people have been way too forgiving in their "he couldn't have known" and "the laws are confusing." DSP could have and should have done that Google search while researching the pros and cons of each state he wanted to potentially move to with The LeannaTM. He didn't, which was not an accident or him being a victim of bad advice; it was negligence.

He is fucked though. He let slip there is going to be a 30% penalty on top of what he owes. I didn't figure WA state would go HAM like that.

Meh, a 30% penalty just makes it a 1.95% tax rate instead of 1.5%.

 

[neger psykolog]

Paypal, Twitch, youtube, and t-spring. It can't be that hard to sum that up and put it in it's appropriate post. If he can deduct anything like on puchases that is business releated he just fills that in somewhere as well. It's not something a normal person would pay an attorney to do.

I think you'd pay an accountant/"tax attorney" if you earned a certain amount. DSP does earn enough to make it worth the time/money to hire one.

But yeah, regardless of that he obviously still has no real system of compiling his money.

His "business" is actually a bit different than most businesses because DSP's is technically a 100% profit business model. His only real expenses are internet/electricity/video games. His "rent" isn't even really a business expense because he works from home. Most businesses have a lot more when it comes to assets/investments/depreciation and shit.

Its mindblowing that he can't even make a 95% profit business sustainable.

 

[James Smith]

His "business" is actually a bit different than most businesses because DSP's is technically a 100% profit business model. His only real expenses are internet/electricity/video games. His "rent" isn't even really a business expense because he works from home. Most businesses have a lot more when it comes to assets/investments/depreciation and shit.

Its mindblowing that he can't even make a 95% profit business sustainable.

THANK YOU. THIS.

 

[NoMoreFarLeft]

Its mindblowing that he can't even make a 95% profit business sustainable.

Because the fucker was already running up debt when he had a 9 to 5 which provided a predictable income. Youtube and Twitch are highly volatile. Do you really think he has abstract thinking ability to predict his income or the impulse control to throw money away on stupid shit? I don't think so. None of this should be surprising at this point.

@SoapQueen1 It matters. That extra 30% is on top of the accumulated tax which he already can't pay. Think about how much he is gonna panic if it's on top of tge 1.5%, much more so if the tax rate the state decides to charge him is 3.5%. The salt is going to be fucking amazing. And you are right though. This could have been planned for or avoided if he bothered to take the 15 minutes to research this online when he first moved to WA.

EDIT: As a little extra dirt on Phil's grave, the state could not bother with putting him on a payment plan. It would make sense for them not to because he has a hard time payimg his bills anyways. They could garnish his income. He better hope and fucking pray they don't.

 

[BSV]

I think you'd pay an accountant/"tax attorney" if you earned a certain amount. DSP does earn enough to make it worth the time/money to hire one.

But yeah, regardless of that he obviously still has no real system of compiling his money.

His "business" is actually a bit different than most businesses because DSP's is technically a 100% profit business model. His only real expenses are internet/electricity/video games. His "rent" isn't even really a business expense because he works from home. Most businesses have a lot more when it comes to assets/investments/depreciation and shit.

Its mindblowing that he can't even make a 95% profit business sustainable.

Well most likely he does. I can't think of any other way of looking at it other then that he lies and make up false hardship. I actually thought he was telling the truth half the time about his finances. But this last round of just making up arbitrary numbers in "tax season" have sort of made me change my mind.

He will never admit to having something sustainable because he thinks he would lose the pitty dollars. Being a greedy E-beggar is what he does. He will never reach his funding goal, there will always be something, and there will never be enough.

If not, where did all the money go? Did he burn them in the fireplace? Is his post nasal drip because of abusing cocaine and alcohol? Is it all in jugling predatory money lenders? He is either lying about his financial state and is doing just fine, and is afraid to admit it. Or there is some giant x-factor he is hiding.