DSP's Loan & Savings Company -

  • Apologies for the site issues. The server's shipment was delayed. I'll ask again about it and if they can't provide it I'll source another.
What is the housing market like in Phil's area? If he hypothetically had to sell his house to pay taxes how long do you speculate it would take?
Phil got incredibly lucky & purchased that place in Renton just at the start of a Seattle housing boom. The Pacific Northwest has had the hottest real estate market in the country over the past several years. Phil purchased his condo for $265k in early 2014. Since then, identical condos in that same development have sold for well over $300k.

Now, Phil has been trying to refinance his mortgage in order to payoff his revolving debt, but the bank won't work with him because his income to debt ratio is shit. Despite what other detractors think, I believe Phil is just barely treading water between his 2 mortgages, "business" loans & credit card debt, car payment, $400 internet etc. It is possible that a $5k tax bill could break his very tenuous balancing act.

If he sells, I believe he would make a tidy profit with a very short turnaround. He doesn't want to sell now though because he's hoping the value of that condo will continue to rise substantially in the next 3 - 5 years to the point where he can pay off everything. He's banking on that condo in to pay off all his debts as well as the Connecticut place. That's why he's so worried about having to sell now. I'm convinced all Phil's plans hinge on selling that place in 3 - 5 years for a huge profit.
 

gobbogobb

Granny sees what you post online.
True & Honest Fan
kiwifarms.net
Phil got incredibly lucky & purchased that place in Renton just at the start of a Seattle housing boom. The Pacific Northwest has had the hottest real estate market in the country over the past several years. Phil purchased his condo for $265k in early 2014. Since then, identical condos in that same development have sold for well over $300k.

Now, Phil has been trying to refinance his mortgage in order to payoff his revolving debt, but the bank won't work with him because his income to debt ratio is shit. Despite what other detractors think, I believe Phil is just barely treading water between his 2 mortgages, "business" loans & credit card debt, car payment, $400 internet etc. It is possible that a $5k tax bill could break his very tenuous balancing act.

If he sells, I believe he would make a tidy profit with a very short turnaround. He doesn't want to sell now though because he's hoping the value of that condo will continue to rise substantially in the next 3 - 5 years to the point where he can pay off everything. He's banking on that condo in to pay off all his debts as well as the Connecticut place. That's why he's so worried about having to sell now. I'm convinced all Phil's plans hinge on selling that place in 3 - 5 years for a huge profit.
To add on:. This isn't a completely dumb idea. What makes it sort of dumb is his income streams. He's also betting on status quo with regards to his strening for that time. If he had a secure job it wouldn't even be an issue even if he is treading water.
 

Adamska

Last Gunman
True & Honest Fan
kiwifarms.net
If he sells, I believe he would make a tidy profit with a very short turnaround. He doesn't want to sell now though because he's hoping the value of that condo will continue to rise substantially in the next 3 - 5 years to the point where he can pay off everything. He's banking on that condo in to pay off all his debts as well as the Connecticut place. That's why he's so worried about having to sell now. I'm convinced all Phil's plans hinge on selling that place in 3 - 5 years for a huge profit.
He's not that clever; he just refuses to fucking give it up because that in his mind would be a "defeat" and hurt his bloated pride. He is mentally pulling a Hitler, namely his "no retreat" orders, in his own brain when it comes to that condo. He'd rather go completely bankrupt than sell the dusty shithole and find a small cottage or flat.
 

PedoPhil

kiwifarms.net
He's not that clever; he just refuses to fucking give it up because that in his mind would be a "defeat" and hurt his bloated pride. He is mentally pulling a Hitler, namely his "no retreat" orders, in his own brain when it comes to that condo. He'd rather go completely bankrupt than sell the dusty shithole and find a small cottage or flat.
As I said before, no alog, but if he were to choose between cancer and getting a job hed choose cancer in a heartbeat.
 

Ching_Chong

kiwifarms.net
He's not that clever; he just refuses to fucking give it up because that in his mind would be a "defeat" and hurt his bloated pride. He is mentally pulling a Hitler, namely his "no retreat" orders, in his own brain when it comes to that condo. He'd rather go completely bankrupt than sell the dusty shithole and find a small cottage or flat.
One of the few times I ever agreed with Fred when he said Phil would rather die than give up the house.
 
  • Winner
Reactions: PedoPhil

neger psykolog

moon goons for communism detection
True & Honest Fan
kiwifarms.net
So do you think he permanently retires the "save muh house" scam or puts it on hold for a month or two? Regardless, he can't continue to use it indefinitely.
I'll be curious to see the new financial crisis he comes up with.
I think given his income has been declining over time, he's going to do it every single tax quarter, like he's already said.

A point of interest is that people were saying that if he went with a payment plan and missed a single payment he would be fucked. However, based on research this appears to be untrue. He would however get penalties for the missed payments and he would have to sign an agreement which would potentially put a tax warrant/lien on him.

If he did get a tax lien that would basically be, as the article I've linked below says "As bad as a bankruptcy":
“The impact a tax lien has on a consumer’s credit score depends on the consumer’s unique financial history, as well as the credit score model that’s being used,”
https://www.creditcards.com/credit-card-news/how-does-tax-lien-affect-credit-score.php

The other interesting thing I found when it comes to payment plans (at least state taxes, this doesn't necessarily apply for federal taxes) is that he may not even quality for a payment plan:
upload_2018-4-7_12-36-33.png

https://dor.wa.gov/file-pay-taxes/late-filing/delinquent-tax-collection-process

Note the "if you quality" part.

What's not really known is that these are state backtaxes with no malice or intent to defraud so its possible they are a whole lot more open to doing payment plans.

So the question here has really become, was Phil trying to raise money to bulk pay the entire back tax amount to avoid a potential tax lien? Is Phil being on a payment plan for his backtaxes actually just as bad as declaring bankruptcy in the first place?

Additional laws:
http://apps.leg.wa.gov/WAC/default.aspx?cite=458-20-217
http://app.leg.wa.gov/RCW/default.aspx?cite=82.32.210

However, things get even more confusing once you read more:
upload_2018-4-7_12-44-27.png


My understanding of this, is that if Phil were to not declare bankruptcy and sell the house, which is undeniably his primary way he could actually pay off these backtaxes the state government might say fuck you and send him a bill for the entire amount, even if he was on a payment plan previously.

There are very many ways to read into this entire situation, but it looks even messier than most people have claimed it is ("oh he can just go on a payment plan!"). It really looks like whichever way Phil walks, besides declaring bankruptcy will be a huge series of compounding events involving the IRS, the Washington Department or Revenue, banks, credit card companies, mortgage companies and a million other people all sending him notices to pay at once.

It would seem that if he actually agrees to a payment plan he is essentially fully tying himself to staying in the Renton Palace until he fully settles the outstanding tax amount and if he ever decided to sell the state government might decide to say "fuck you" and force him to pay the entire amount.
 

actually

Supervisor
True & Honest Fan
kiwifarms.net
I'm pretty sure that "if you qualify" is to keep super rich people from essentially deferring tax payments. There's no real reason (unless he's actually making far more than we know) that he won't get on a tax payment plan. The IRS (state and federal) is far more concerned with getting their money, however it needs to happen.

With that said, you're right about what would happen if he tried to sell the house and peace out. WA state would 100% get their pound of flesh. Similarly, the feds will keep tax refunds you might get in subsequent years if you're on a payment plan (know this from personal experience) to bring down your owed taxes. Given that he didn't jump on the nearly 3,000 viewers he suddenly had last night, I don't believe for a second he's in some dire situation. He was waaaaay too cavalier about leaving when he had a massive audience that might have thrown a significant amount of money at him.
 
  • Thunk-Provoking
Reactions: neger psykolog

neger psykolog

moon goons for communism detection
True & Honest Fan
kiwifarms.net
I'm pretty sure that "if you qualify" is to keep super rich people from essentially deferring tax payments. There's no real reason (unless he's actually making far more than we know) that he won't get on a tax payment plan. The IRS (state and federal) is far more concerned with getting their money, however it needs to happen.

With that said, you're right about what would happen if he tried to sell the house and peace out. WA state would 100% get their pound of flesh. Similarly, the feds will keep tax refunds you might get in subsequent years if you're on a payment plan (know this from personal experience) to bring down your owed taxes. Given that he didn't jump on the nearly 3,000 viewers he suddenly had last night, I don't believe for a second he's in some dire situation. He was waaaaay too cavalier about leaving when he had a massive audience that might have thrown a significant amount of money at him.
Yes, but the possible implication is that even if he is able to get on a payment plan, it may mean the state government decides to issue a tax lien on DSP/his property.

That tax lien would likely result in a massive hit to his credit score, which would probably affect every single line of credit he currently has.
 
  • Informative
Reactions: actually

actually

Supervisor
True & Honest Fan
kiwifarms.net
Ah, ok. I missed that part in your summary. That's an interesting implication that didn't apply in my case since I was renting at the time. Good find.
 

neger psykolog

moon goons for communism detection
True & Honest Fan
kiwifarms.net
Ah, ok. I missed that part in your summary. That's an interesting implication that didn't apply in my case since I was renting at the time. Good find.
I'm not a tax expert or anything, but from what I gather its essentially the state government putting a lien on a significant property/account. I think its like the government saying "hey, we have first dibs on this shit if he defaults on payments".

upload_2018-4-7_16-59-49.png


"The lien for taxes is also superior to any interest of third persons that vested prior to the warrant"

My reading on that part of the law pretty much says that the state government will issue a lien which gives it retroactive priority over all other debts.

They also apparently don't even have to give notice. They can just decide they're going to do it and then go ahead and do it.
 

gobbogobb

Granny sees what you post online.
True & Honest Fan
kiwifarms.net
I'm not a tax expert or anything, but from what I gather its essentially the state government putting a lien on a significant property/account. I think its like the government saying "hey, we have first dibs on this shit if he defaults on payments".

View attachment 421369

"The lien for taxes is also superior to any interest of third persons that vested prior to the warrant"

My reading on that part of the law pretty much says that the state government will issue a lien which gives it retroactive priority over all other debts.

They also apparently don't even have to give notice. They can just decide they're going to do it and then go ahead and do it.
Without getting too legalsperg, not exactly. There are a lot of things in play with secured credit. But a tax lien DOES make everyone scared and can fuck over all sorts of credit arrangements.
 
  • Informative
Reactions: actually

Authentic Sauce

kiwifarms.net
The other interesting thing I found when it comes to payment plans (at least state taxes, this doesn't necessarily apply for federal taxes) is that he may not even quality for a payment plan:
The fact that the state wants financial documents to determine if one qualifies and how much they can afford to pay may not work out so well for DSP. The state of Washington is not likely to care too much about "mah bills" two mortgages, car payment, credit card debt and whatever else he might have. I would expect this to be based on a standard formula of income versus standard cost of living to determine how much one can afford to pay, basically I would not expect the state to take into account his many other debt obligations, particularly things like credit card debt.

Had not considered the lien angle too much, and could not find any hard rules on when that might be used, seems its kind of discretionary. At the same time not sure if this is too big of an immediate deal for Phil. His credit is already terrible from what he says and bad credit really only matters if he is trying to get new credit and he already confirmed the banks won't give him more loans. If he was to sell the WA house, the state would just get paid first which is what he should do anyway if he was to sell the house without a lien. If anything it might just force him to make the right decision, so could be a good thing for him.
 

Monday Michiru

The Washing of Dishes
kiwifarms.net
Really, Phil? His tiresomeness is starting to overpower the fun of watching the blunders and meltdowns.
This gay fucking explanation in full. At least he gave us numbers. I really never even expected that.

Phil (@TheyCallMeDSP) said:
Got my 2017 taxes today and finally have full info on my Federal tax situation. Since many of you are concerned and have contributed to help, I feel the need to share the results. If you absolutely do not care, please skip this post.

First, the long explanation:

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.

In addition, my new tax attorney is charging me around $1k to file my taxes. This is as expected, as my previous attorney charged me about the same.

THE GOOD NEWS: I have raised enough money to pay both these 2017 back taxes and my tax attorney for his services. So I’m in the clear there.

THE BAD NEWS: In addition to everything above, I also now am expected to pay my “first estimated tax payment” for 2018 by April 17 in the amount of ANOTHER $4k. This, sadly, I don’t have. At all. All of my available funds are going to the 2017 taxes and tax attorney filing fees, which is exactly as I’d feared. I do not realistically see myself raising $4k in the next 9 days to pay this unless a miracle happens. So sadly, for now it looks like I’m stuck not paying - meaning I’ll begin to accrue late fees and penalties on this unpaid tax. I also have further payments due in June, September and December, which I hope to be able to afford with the money I raise between YouTube/Twitch/Patreon/Teespring and tips. So if things go well this year, I may be in the clear. But it absolutely SUCKS that I’m going to start off behind and owe these fees and penalties.

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. If my OLD tax attorney had done his job, I would actually be in a completely fine place right now, and might have even had a bit of extra money. Instead, I find myself on the edge of a slippery slope of unpaid federal taxes that could cause me to lose my home in the coming year. 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.


TL;DR, here is the summary version:

Thanks to the help of the viewers, I’m able to pay my 2017 Federal taxes and the tax attorney in full. But I still owe $4k for my first Federal tax payment of 2018, and I have nothing to pay that with. So I’m starting the year way behind, and if things on Twitch/Youtube don’t improve over the course of the year, I’ll find myself in a terrible position where I can be forced to sell my house within a year. If a miracle happened and I somehow raised the $4k in 9 days, I would be in an incredibly better position and feel way more positive about things than I do now, since I wouldn’t be $4k behind on my taxes from the get-go and could just focus on the future. But I’m not really expecting said miracle to happen.

Thanks all for your time and I hope this clears things up.
http://www.twitlonger.com/show/n_1sqgc3j
https://web.archive.org/web/20180408042854/http://www.twitlonger.com/show/n_1sqgc3j
https://archive.li/tw3lo

(If he were smart he'd delete this btw)
(If he were really smart he'd never have made it in the first place)
 

samovski

feelsoldman
kiwifarms.net
So are we seeing the continuation of the saga? I thought he was gonna start easing off the tax sub-plot but it looks like he might start kicking it into overdrive. The nerve of the man is kinda impressive. He's both thanking his donos but also blaming them in the same breath. Wonder how much longer it'll work.
 
  • Agree
Reactions: Stay safe and Lysol

Sparkletor

kiwifarms.net
DSP made so much the end of last year that his taxes are $4000 more than he expected.

Does anyone know how much he would have made to get an increase of this amount?
 

BSV

Vidar Viking Elvi
True & Honest Fan
kiwifarms.net
the best thing that came out of that is him spreading awareness with the problem of heroin addiction.
"I owe a bunch of money (over $4k) for my 2017 Federal taxes by April 17, because I made more money last year than I usually would have."
So it would have been better to earn less???? if we just use the math that is 20% of his total income. Which means he earned 20 000$ the last quarter of 2017. (If what he is saying is true) If what he says is true that have to mean a mismanagement of funds on a epic scale.

This tale of 5k tax attorneys for some miniscual business tax is just the dumbest story I have heard. The state don't know what he owes. But his tax atourney is working overtime and does what exactly? He can't give him an estimate either?

There is no consistency in this story what so ever. Phil better stop lying about finances on the internet. You have to be a bigger moron then him to belive any of this.
 
Tags
None