I just got a CP2000 tax form in the mail, what can i do?

Question

Im 21 and know little about taxes and what i can and cant do. Anyway i just got a cp2000 in the mail stating i didnt claim some income i had last year. Im a freelance camera operator for television so i recieve many w-2s and 1099s. I waited until the week before the deadline to make sure i got everything and i still didnt. Since i didnt get a 1099 i forogt and never claimed it, it was $4400.00. I am wondering how i can get around paying the 1400 they say i owe. Someone said maybe a scedule c, which is a business write off form. The only thing about that is i dont have any of the reciepts for anything. Can i just do it and hope i dont get audited? Are they going to ask for proof? Please some help because i dont have 1400 laying around for the government. Thanks.

Answer 1

Unless you had expenses that equal the entire income from that job, you'll owe at least some of what they asked for. If you already claimed essentially all of your expenses for the year, then you'll owe most or all of it.

To deduct anything, you'd need a list of the specific deductions. You don't necessarily need actual receipts for all of them, if you can show in some way that they're true. At this point, you've caught the attention of the IRS, so this is NOT the time to start making anything up. But if you have some expenses that you can show logically do exist, then you could get out of paying some of the $1400.

Answer 2

Schedule C is where you would normally report it, but IRS has recorded the income part of your business - and you DO have a business. The tax they are requesting is made up of 2 things, income tax and self-employment(social security) tax.. If you have legitimate expenses such as travel or mileage, prepare a schedule C and send it back with the form. You will save about 30% of whatever you can come up with.

Answer 3

do no longer record a 1040X - your reaction to the CP2000 took care of that. became the 2nd communique extremely a 2nd CP2000, or purely affirmation that the 1st became won and processed, and agreed with at their end? It looks like each and every you're able to do is sit down decrease back and await the verify.