I didn't pay taxes last year?

Question

Hi...... Simple question....... I worked about 6 months (contract job) in 2005 and made roughly 40-45k and did not pay taxes on this..... This particular company without doubt reported this....... should I mention this when filing at H&R this year or just leave it alone? I was told that tax debt can increase up to 500% over a few years..... any advice would be appreciated.

Answer 1

Don't mess with the IRS....seriously...my ex husband, for some strange reason didn't file for 5 years...it cost about 20 times as much to fix it as it would have if he just dealt with it in the first place, trying to fix it was sooooooooo hard and they are difficult. They tried to get it from me because I was his wife..it was awful..just fess up and pay...life will be easier....

Answer 2

Claim the income and pay the taxes and penalties. Whether you receive a 1099 or not it may have been reported by the company and the 1099 got lost. You should be asking about it though.

Even if they didn't cut a 1099, if they're audited they'll be fingering you as the recipient for the $$$ as it will cost them a lot less to pay the penalty for not filing the 1099 (about $150 or so) than the tax and penalties on the lost business deduction will.

Failure to report income can incur massive penalties and interest will accrue on any unpaid tax.

To put it in perspective, if your choice is to pay the IRS or pay your credit cards, pay the IRS.

Answer 3

you can still file a return for 2005

Answer 4

You can file your previous years any year, if you don't file them on time. Of course is good when you do it on time. When you go to the agency just let them know for last year and they will help you. Just do it on time.

Answer 5

YES, you have to report it. And you're going to have to pay taxes on it.