PCA- Personal Certified Accountant QUESTION about TAXES?

Question

My boyfriend had some mexicans working for him doing roofing work through a company that paid my boyfriend directly. Then my boyfriend would pay the Mexicans. This year he recieved a bill for $80,000 from the Government saying that is what he paid that year, however, most was paid to the Mexicans. He never had them fill out a w-2 form, but he said he can still do that, and still have them fill them out, does he have anytime to do that, can he still do that since he already paid them last year and it is over and done with, to show he paid them, and did not make all the money himself?

Answer 1

First off, there's no such thing as a PCA. It's CPA, Certified Public Accountant. (I'm not one, but there are two in the famliy and I used to work in the field though never got my CPA.)

Short answer: They're his employees and he should have been paying payroll taxes and deducting withholdings for federal, state, and SS taxes. He still owes this money, even if he didn't withhold it from the monies he paid them.

Then there's the secondary issue of possible employment of illegal workers. The fines there can be astronomical though they're usually minimal, thanks to the current administration's lax enforcement of the laws. (That's about the only good news for him in this scenario.)

Payroll taxes generally are paid quarterly, monthly, or weekly depending on the total payroll amount. There are stiff penalties for late payment as well as interest due.

He's now in a very unenviable situation -- two choices, neither of which is a great one. He can pay the $80k and make the whole thing go away. Or he can try to convince the IRS that the funds were paid out to independant contractors and reduce his income and therefore the tax. Since he didn't file 1099s for those folks -- and many probably didn't have SS numbers needed to file them anyway -- that ploy is not likely to work. The IRS could come back and declare them employees (correctly so!) and then assess the payroll taxes and penalties and interest for late payment of those as well. That could double or even triple the tax bite very easily. If they REALLY want to play hard-ball, he can be prosecuted for tax evasion. At least he might serve that time at one of the Federal Prison Camps if his record is otherwise clean.

Best bet: Pay the $80k quietly and make the whole ugly thing go away. Then play by the book in the future! If that's not an option, he needs to retain a good tax attorney or CPA right now! He's going to need legal advice and plenty of it so a tax attorney might be the better bet -- maybe both an attorney and CPA.

You yourself may wish to re-think your relationship with this character. He obviously has no problem with breaking the law both as a tax cheat and possibly with employing illegal workers. That doesn't say much about his character; I'd be heading for the hills myself. But it's your life...

Answer 2

lots of the staff getting waiting taxes on the storefront tax prep agencies are momentary workers employed for the tax season, and have not any accounting preparation or historic past previous a fe week path in tax prep given by making use of the employer that hires them. you will discover a CPA interior the yellow pages, or ask human beings you recognize.