The IRS Says I Owe Them $180,000

Summary

Podcast Summary: "The IRS Says I Owe Them $180,000"

Podcast: The Ramsey Show Highlights
Host: Ramsey Network (Dave Ramsey & Rachel Cruze)
Date: December 23, 2025
Duration: ~8 minutes (content, excluding ads/intro/outro)

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Episode Overview

In this episode, a distressed caller seeks guidance after being notified by the IRS and Colorado Department of Revenue that he owes over $180,000 in taxes due to a clerical error involving his former employer’s use of his Social Security number. Dave Ramsey and Rachel Cruze respond with strong, practical advice, underlining the urgency of legal action, self-advocacy, and not letting bureaucratic mistakes go unchallenged.

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Key Discussion Points & Insights

The Caller’s Situation

• Backstory:
  • The caller's Social Security number was mistakenly linked to his former employer’s Shopify account.
  • Both the IRS and the Colorado Department of Revenue believe he owes significant back taxes.
  • Attempts to get his former employer involved have failed; they haven’t helped resolve the error.
• Current Status:
  • IRS claims he owes over $180,000.
  • Colorado says he owes $13,000+.
  • Facing imminent wage garnishment.

Immediate Advice: Get Aggressive Legal Help

• Dave Ramsey's Stance:
  • Strongly advises hiring a tax attorney immediately, not waiting another day.
  • Emphasizes: “You can't afford not to do it” ([02:29]).
  • Suggests fighting fire with fire—threatening legal action against garnishment (“We're going to sue you for $20 million because it's not his debt. It's a clerical error, and you can't garnish him” [01:38]).
• Rachel Cruze’s Perspective:
  • Affirms the caller is in the position of power if he takes action, not as powerless as he feels.

Critique of Inaction and Misplaced Faith in Bureaucracy

• On Waiting:
  • Dave: “Did you think this was just going to go away? Honey, no.” ([02:47])
  • Rebukes the idea that relying on IRS processing or hoping for resolution is a viable strategy.
• On Faith in IRS/Employer Help:
  • “You just said the IRS is competent. That’s hilarious. That’s a funny joke.” ([02:57])
  • Rachel: “The IRS is going to help you. Come on, man. Really?” ([03:09])
• On Employer Responsibility:
  • Sharp criticism for lack of employer’s action:
    • “That does not qualify as good. Christian, by the way. Hello. Missing on your employees does not qualify. Hello.” ([04:24])

Empowerment and Taking Control

• Dave’s Motivational Push:
  • “You need to be the hero of the story, not the victim. Get up and get them. Because this is not going to fix itself, man.” ([04:34])
  • Calls for action—“You’re going to have to be like a grown up and go attack this situation with a vengeance.” ([04:47])
• Attorney Selection Guidance:
  • “You hire an attorney who gets excited about this, not one who’s like, ‘oh, no, no.’ … You want an attorney that even you don’t really like. That’s the kind of attorney you want. … You want one that pisses off everybody because that’s his job as an attack dog. Sick ’em.” ([05:16]–[05:43])

Emotional Cost and the Urgency of Resolution

• Caller’s Struggle:
  • Admits the ordeal has weighed on him for three years.
  • Dave: “This has owned you every waking moment for the last year, hadn’t it?”
    Caller: “The last three years.” ([05:50])
  • Dave: “You need to be free from this. And the only one’s going to set you free is you with action. Okay?” ([05:53])
• Host Empathy & Relatability:
  • Rachel: “He’s been losing sleep for three years.” ([07:05])

Lessons on Self-Reliance & Accountability

• Do it Yourself:
  • Rachel: “If you want something done, sometimes you just got to do it yourself.” ([07:19])
  • Dave: “No. Every time. … You got to do it yourself.” ([07:22])
• Ignoring Problems Only Makes Them Worse:
  • Dave’s analogy: “When something’s wrong and you … kick it up under the rug, you know what you get? Lumpy rug. … Things have a high rate of resurrection. Like a hundred percent chance it’s going to resurrect—it looks like a zombie when it comes out from under the rug. Now go ahead and kill it now so you don’t have to deal with it later.” ([07:25])

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Notable Quotes & Memorable Moments

• On Taking Immediate Legal Action:

  “You can’t afford not to do it because Colorado’s getting ready to take $6,000 out of your butt any minute. Yeah, you may as well give it to an attorney and fight back. Yesterday.”
  – Dave Ramsey ([02:29])

• On Relying on the IRS:

  “You just said the IRS is competent. That’s hilarious. That’s a funny joke.”
  – Dave Ramsey ([02:57])

• On Self-Advocacy:

  “You need to be the hero of the story, not the victim. Get up and get them. Because this is not going… It’s not going to fix itself, man.”
  – Dave Ramsey ([04:34])

• Attorney Selection Wisdom:

  “You want an attorney that even you don’t really like. That’s the kind of attorney you want. … You want one that pisses off everybody because that’s his job as an attack dog.”
  – Dave Ramsey ([05:37])

• On Letting Problems Fester:

  “When something’s wrong and you kick it up under the rug, … you get lumpy rug. … [It] looks like a zombie when it comes out from under the rug.”
  – Dave Ramsey ([07:25])

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Timestamps of Key Segments

• Caller describes his IRS and employer problem – 00:06–01:16
• Dave drills down: wages, partnership, employer status – 01:16–01:26
• Immediate legal advice – 01:26–01:38
• Attorney cost versus risk – 02:09–02:29
• Dave & Rachel mock faith in IRS bureaucracy – 02:57–03:11
• Action, motivation, and legal options – 04:31–05:16
• Empowerment and attorney qualities – 05:16–05:43
• Emotional toll and long-term impact – 05:50–06:30
• Reflection on employer accountability and urgency – 06:30–07:19
• Final lessons on self-reliance – 07:19–07:45

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Conclusion

This episode encapsulates Dave Ramsey and Rachel Cruze’s direct, energetic approach to personal finance crises. The clear message: tackle bureaucratic errors head-on immediately, don’t trust government agencies or inattentive employers to look out for your interests, and take proactive, decisive steps to resolve financial threats. Their trademark tone blends tough love with actionable guidance, designed to empower listeners facing seemingly overwhelming hardship.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free today.

[Caller]

For the past three years, I've had a lot of issues with the IRS and the Colorado Department of Revenue. My former employer that I worked with for 27 years, somehow my Social Security number got tied to their Shopify account. And the feds, as well as Colorado State have been coming at me for the last three years on back income tax that I owe them. And today I received notifications. My apologies. They're gonna start garnishing my wages, and I'm just in a tough spot. And I've reached out to my former employer multiple times to try to fix this, and they've done nothing to help me.

[Dave Ramsey]

So what does the IRS say you owe them?

[Caller]

Over $180,000.

[Dave Ramsey]

What does the Colorado State say you owe?

[Caller]

Right now they're saying $13,000 and some change. Okay, but the 13.

[Dave Ramsey]

What do you make a year?

[Caller]

Right now I'm making about 130k.

[Dave Ramsey]

Okay. Were you a partner in the former business in any way?

[Caller]

I was not.

[Dave Ramsey]

You were simply a W2 employee?

[Caller]

Yeah.

[Dave Ramsey]

Okay, well, dude, you need to hire an attorney.

[Caller]

That's what I keep on thinking. I just try to.

[Dave Ramsey]

No, today, today you should have called them before you called us. You need to get a tax attorney, someone that does taxes, and they need to call the Colorado and say, look, if you garnish this guy, we're going to sue you for $20 million because it's not his debt, it's a clerical error, and you can't garnish him. There's nothing to be afraid of, honey. You don't owe the money. It's not your money. You don't owe it. It's an error by your former employer, and you're probably going to have to sue them, get them off their butt, too. But joyful, joyful. Light some people up, baby.

[Caller]

I know. I contacted a tax attorney about six months ago. I put a lot of faith in this business here in Colorado Springs because I, you know, they're a Christian business. And, you know, when I talk to the tax attorney, they're like, well, it's going to cost you $6,000 out of pocket for us to do it. And I was like, I just can't afford that.

[Dave Ramsey]

You can't afford not to do it because Colorado's getting ready to take $6,000 out of your butt any minute. Yeah, you may as well give it to an attorney and fight back. Yesterday. Why did you wait six months? Did you think this was just going.

[Caller]

To go Away, Honey, no, I. Honestly. The IRS keeps on sending me notices saying that they're working on it and they need more time.

[Dave Ramsey]

No, wait a minute. You actually. Here's what just came out of your mouth. You just said the IRS is competent. That's hilarious. That's a funny joke.

[Rachel Cruze]

And that they're going to investigate this for you.

[Dave Ramsey]

The IRS is going to help you. Come on, man. Really? You know who's going to help you? You, starting today. So either call that tax attorney back or get a new one. And you need to. Somebody needs to be in touch by the close of business with Colorado so they don't start garnishing your dadgum wages, man. Because here's what you get for doing nothing. Somebody will do stuff to you. You can't do nothing. Nothing is not one of your options. That strategy sucks. So either call. Either call that tax attorney back or get online at Ramsey Solutions, find one of our tax pros in the area and have them make a recommendation. You need legal representation by the close of business today. They need to be in touch with somebody and say, hold on, junior, this guy does not owe any money. This is a clerical error. And if it can't get fixed by working directly with the tax institutions, you may have to sue your good critics. Christian, former employer who can't seem to help you get rid of $180,000. That does not qualify as good. Christian, by the way. Hello. Missing on your employees does not qualify. Hello.

[Caller]

Thank you, Dave. I hear you. I appreciate it.

[Dave Ramsey]

Dude, you need to be the hero of the story, not the victim. Get up and get them. Because this is not going. It's not going to fix itself, man. Okay? It's not. This is not. There's no. There's no. There's no tooth fairy that's going to land in here that the tax fairies not going to come visit you and fix this. You're. You're going to have to be like a grown up and go attack this situation with a vengeance. Otherwise it's going to take you down because you don't want to screw around with the IRS for the next decade.

[Rachel Cruze]

And they're wrong. You're in the position of power. You're right. You have the information. I just feel like your. Your countenance is very low, as though everybody else knows more than you, as.

[Dave Ramsey]

If you have no options. You're the one with all the options. But listen, you hire an attorney who gets excited about this, not one who's like, oh, no, no. What we're gonna do if that's the attorney. Fire them before you hire them. You want an attorney? Gets mad like I am right now.

[Caller]

I appreciate that, Dave. More than you know. And your book changed my life and made me a believer. I want you to know that.

[Dave Ramsey]

I appreciate that. Hey, hit this thing right in the nose and see if it'll bleed. Okay, I will. Yeah. Knock it down. Knock it down. This is. This been. This has owned you every waking moment for the last year, hadn't it?

[Caller]

The last three years.

[Dave Ramsey]

You need for. You need to be free from this. And the only one's going to set you free is you with action. Okay? So get on Ramsey Solutions. Talk to one of our tax pros in the area. Tell them what your situation is. And you tell them I'm fired up about it. Said Dave's fired up about this. Okay. And get me an attorney that's fired up. You want an attorney that even you don't really like. That's the kind of attorney you want. Okay? You want one that pisses off everybody because that's his job as an attack dog. Sick them all. Right? Her job. Whatever. Get it. And that. That's. Man, she.

[Rachel Cruze]

That's crazy. He's letting these. The IRS could care less. Number one.

[Dave Ramsey]

These people could care. No one is incompetent bureaucrats.

[Rachel Cruze]

No one. Yeah. No one's thinking about this.

[Dave Ramsey]

He's including the former employer. How embarrassing.

[Rachel Cruze]

Horrible.

[Dave Ramsey]

We accidentally did that to one of our people here.

[Rachel Cruze]

Oh, my God.

[Dave Ramsey]

I would be so embarrassed that I would have fixed it in 20 seconds. Yeah.

[Rachel Cruze]

And somebody would have got fired.

[Dave Ramsey]

Yeah. Hello. Wow, man. Wow. Not. Not if it was an honest mistake, but it goes on a long time.

[Rachel Cruze]

Three years.

[Dave Ramsey]

$180,000, too.

[Rachel Cruze]

He's been losing sleep for three years.

[Dave Ramsey]

We didn't sell, like two paintings on Shopify here. This is like. There's something big going down here. Wow.

[Rachel Cruze]

Wow.

[Dave Ramsey]

Oh, man.

[Rachel Cruze]

If you want something done, sometimes you just got to do it yourself. Dave.

[Dave Ramsey]

No. Every time.

[Rachel Cruze]

Can't be waiting around every time.

[Dave Ramsey]

You got to do it yourself. When you guys listen, when something's wrong and you kick it. You put. You kick it up under the rug. Kick it up on the rug. You know what you get? Lumpy rug. That's what you get. And these things have a high rate of resurrection. Like a hundred percent chance it's going to resurrect. It looks like a zombie when it comes out from under the rug. Now go ahead and kill it now so you don't have to deal with it later. Create your free everydollar. Budget today. The simplest way to budget for your life.