Q: I want to start a business after my old job let me go. Do I have to pay taxes on old income if I don't have new $$ yet?
A: It is really apples and oranges. Tax is due on prior income and whether not you earn additional income. If you cannot pay the tax because you have no income, then contact the IRS and ask for a hold on enforced collections. They should grant a hold if you have no income. Also, filed a tax return when due even if you don't have the income to pay it.
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