I have received a notice of intent to assess from Mass. DOR. What is this and how should I respond? I babysit out of my home and get paid in cash.
2007-02-26 23:03:47 · 2 answers · asked by quint2 1 in Business & Finance ➔ Taxes ➔ United States
It would appear that the state is claiming that you have income that you did not report, and they're letting you know that they want their money.
That babysitting income is taxable income and if you didn't file a tax return, or if you did file but failed to claim it, the state is going to go after you for the taxes due.
If you didn't file a return, do so quickly and pay any taxes due. If you did file a return but didn't claim all of your income, file an amended return and pay the additional tax due.
If you don't act quickly, the state will file a "constructive return" based upon the information that they have available and assess any tax that they feel is due.
A consultation with a CPA or tax attorney may be in order. The state of MA isn't known for it's compassion for people that they think are tax cheats.
2007-02-26 23:16:29 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It means that you have a very short amount of time to come to terms with the Commonwealth. Contact them immediately to attempt to either pay them in full or to establish a payment program. They will shut down your bank account if you don't act immediately.
2007-03-02 18:54:27 · answer #2 · answered by Scott K 7 · 0⤊ 0⤋