I have been earning a foreign income for 10 years. My income comes directly from another country. The office is located in New York though. I have not filed a tax return as my employer told me i did not have to do so. However the IRS is looking into our company since last month. Do I really need to pay tax here? If so what kind of trouble can I get into since I haven't paid for 10 years? Will there be harsh penalties?
Thanks for your help.
2007-03-07 11:20:35 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
all WORLDWIDE income is taxable, unless specifically excluded by law. sounds like you gots a problem. you better hope that you are due 10 years of refunds or there will be quite harsh penalties and interest.
2007-03-07 11:27:12 · answer #1 · answered by RichManPoorMan 2 · 2⤊ 0⤋
If you are a US citizen or a US resident, then you should have been paying taxes on this income. And now that the IRS is looking into it..... well, you're probably busted on this. Penalties for ten years of failing to file won't be real small if you owed very much. The fact that somebody told you that you didn't have to won't help you any - it's your responsibility to find out, not just go with what someone says that you want to hear.
If you are NOT a US citizen and NOT a US resident, and your money comes from another country, and the only issue is that the company has an office in NY, then you might be OK.
2007-03-07 11:43:47 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
Depends on how much income you're talking about in comparison to the rest of the income you reported and if you didn't report it intentionally. If it was an innocent mistake, there would be a limit to the number of years they could go back and collect the amount you owe for. Check with a tax attorney (not HR block)
2007-03-07 15:56:40 · answer #3 · answered by nyboi630 3 · 0⤊ 0⤋
Call a reputable tax place,like HR Block,explain the situation and get advice. There are companies that work with the IRS and help work out a solution and will negotiate if there are interest/penalties.There is a chance you could be getting refunds for all those years.You won't know until you get this situation is taken care of. Good luck!
2007-03-07 11:40:32 · answer #4 · answered by ? 2 · 0⤊ 3⤋
maybee you can tell them the same thing you told me and they would deal with it from there
2007-03-07 11:26:19 · answer #5 · answered by peter w 4 · 0⤊ 0⤋