I found out that a man that I used to live with claimed me as a dependent without my knowledge or permission. I was living in his home but I was working and paying for myself. I even loaned him at least 5,000 which he won’t pay me back now. So I don’t feel like I was his dependent, just because I lived in his home and did not pay rent. I cooked cleaned and watched his child, not to mention I helped him with designing a webpage for his business, and helped him with a lot other work related assistance with his two businesses, without pay, just to help us both out. He also claimed me as part owner of his business, without my permission. He says that is not claiming me as a dependent now, and that he has taken me off what ever papers say that I am part owner of his business. I figure that I really should call the IRS for sure, but still I am nervous he will do it again. Do people think that I should, or can I take him to court for these issues with the taxes, or the other things?
2006-08-10 11:11:46 · 7 answers · asked by radesign2323 1 in Business & Finance ➔ Taxes ➔ United States
Easy. That's called "Tax Fraud." You can turn him in and probably claim a nice reward for it.
http://www.irs.gov/compliance/enforcement/article/0,,id=106778,00.html
2006-08-10 11:17:19 · answer #1 · answered by Sir J 7 · 0⤊ 0⤋
For a person to be a dependent for tax purposes, there are a number of tests that have to be met - one is that they're providing more than half of your total support. This is in dollars - what you did for him at no pay doesn't figure into it. Your permission isn't required - if by tax rules you were his dependent for that year, he can claim you, otherwise not. If you had income and filed the same year and claimed yourself, the IRS will probably catch up with this eventually, and he'd have to prove you were actually his dependent. And legally you might have been, or might not have, depending on circumstances. If he was paying the money for living espenses, and you were providing the services you mention at no salary and did not have other income, then he might well be justified in claiming you.
There's nothing in that for you to sue him for. If you weren't his dependent by the tax laws and the IRS catches it, then he'll have to a answer to them.
As to being part owner of his business - did it harm you in any way or cost you any money? Is there taxable income that he didn't claim and left for you to claim? If not, he might have just been trying to give you something worth something - if it cost you something, then yes, you could probably sue him for costs if you didn't get benefit from it and if he put you on as part owner of his business without your knowledge.
2006-08-10 11:22:56 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
If some different person had the criminal acceptable to declare him, they don't desire his permission. that is a figure, if he lived with them for over 1/2 of 2007. in case you've been married with the help of the top of 2007 and also you filed a joint go back for that 3 hundred and sixty 5 days, then the figure won't be able to declare him no matter if in the different case they legally would have. not likely something to do with identity robbery, yet honestly one of his mothers and fathers (or both on a joint go back) may have claimed him. in case you probably did not record a joint go back for 2007 and his figure(s) met the guidelines to declare him, then they could, they don't desire his permission. If that is what occurred, he'd ought to record an amended go back and drop the declare to his exemption. i could commence with the help of asking his mothers and fathers in the adventure that they claimed him for 2007. that is the likely situation. If that is what occurred, they might are turning out to be a letter also from the IRS wondering their declare.
2016-11-24 19:09:46 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Well... call the IRS. He can only claim you as a dependent if he provided more than half of your cost of living. As for being part of his buisness... I would clarify that because you could be responsible to pay more taxes if it shows you are part owner in the company. How ever.... I believe he would have to prove that you are part owner and that you recieved a profit from this.
Good luck
2006-08-10 11:19:07 · answer #4 · answered by TAZZLOVER8 2 · 0⤊ 0⤋
How much do you hate this guy?
That is tax evasion, plain and simple. They will certainly
audit every tax return where you are claimed as a dependent,
and probably many more just to be sure.
You'll bury him you worry for months! Is that you want?
Ethically - how much money do you suppose he didn't
pay the IRS because of this? If it isn't a lot of money, then
the IRS will lose more money going after him than they
could penalize him for.
That is, if the country is going to spend several thousand
dollars in paperwork to pursue a couple of hundred dollars
worth of lost revenue, you aren't doing your country any favors.
2006-08-10 11:19:37 · answer #5 · answered by Elana 7 · 0⤊ 0⤋
Turn him in before you get in trouble for not paying taxes that he says you should. I can't say about the dependent thing because I don't know the entire situation but the business partner thing needs to be turned in. He is trying to get out of paying for some taxes and making you pay for them.
2006-08-10 13:41:13 · answer #6 · answered by Mawyemsekhmet 5 · 0⤊ 0⤋
you are screwed
2006-08-10 11:17:35 · answer #7 · answered by Anonymous · 0⤊ 0⤋