I worked for a guy that told me I was going to be pd. under the table. At the end of the year he hit me with a 1099. I owe the IRS over $6,000!!! I am a young single parent and I workmy butt off to make ends meet and now I am in total debt. This will take me years to pay. I already live pay check to pay check. What can I do? I am already on a payment plan but is there any way they can lower the amount I owe?
2007-03-23 18:02:14 · 9 answers · asked by saiahg22 2 in Business & Finance ➔ Taxes ➔ United States
Call the IRS and negotiate payment arrangement plan, there is no other way out of this. Good luck.
2007-03-27 13:42:51 · answer #1 · answered by Ola 4 · 0⤊ 0⤋
Look, you need to just suck it up, take an extra job & PAY WHAT YOU OWE! You are basically saying that you (& you boss) cheated on taxes all year & now s/he decided to (halfway) come clean, probably so s/he could deduct what s/he paid you & now you are p***ed that YOU have to pay your taxes like a grown up.
(1) Your creep boss should be reporte b/c you probably did not qualify to be a contractor, though the rules are more lenient now.
(2) You should stop trying to duck your tax obligations. ALL decent, respectable, LEGITIMATE employers will pay you & withhold on you correctly. "Under the table" jobs are usually crappy, anyway. You can do better in the real world.
(3) NO ONE cares that you are a "single parent". We didn't make you single. "Single parents" get enough tax breaks & get lots of (misplaced) sympathy from people like Oprah & the welfare bureaucracy, but NONE from the IRS & those of us who actually pay all our taxes. Find a LEGITIMATE job (or 2 or 3) & stop your whining!
2007-03-24 11:15:45 · answer #2 · answered by Tom's Mom 4 · 0⤊ 0⤋
I would not waste more money on a lawyer. Call the IRS and ask them what you should do. The IRS treats honest people quite kindly - why don't you come on over to the honest side of life? You need to pay your debt like everyone else has to.
2007-03-24 13:17:14 · answer #3 · answered by Just Mee 2 · 0⤊ 0⤋
Your ONLY option is to set up a payment plan with the IRS and clear the debt. There's no way to reduce the amount of your debt other than to pay it off.
2007-03-24 08:30:13 · answer #4 · answered by Bostonian In MO 7 · 3⤊ 0⤋
You can try to get the IRS to settle the debt. I doubt they will be very willing to work with someone who was going to try to stiff them completely by thinking they were getting paid under the table.
If you want to get back at the guy you worked for, check out the definitions of employee vs. independent contractor on the IRS website, www.irs.gov. If you should have been classified an employee, the employer should have paid his share of taxes. He will still have to pay them, plus a hefty fine, if the IRS finds that he misclassified employees on purpose. You still have to pay your share, but you can laugh at him.
2007-03-24 01:11:12 · answer #5 · answered by Brian G 6 · 4⤊ 0⤋
Relax, your'e not the only person that ever got in that situation. IRS will make payment arrangements to let you pay on time based on your ability to pay. You may only be required to pay as little as $10-$20 a month with interest. Call them up, they will send you a form to fill out so they can determine how much you can afford to pay monthly.
If you're a single parent you may qualify for child credit of up to $2,000. If you got a 1099 you may also be able to take certian business deductions on Schedule C.
I would suggest that you go to a tax professional and seek advice. The estra money you spend may be well wroth it. At the very least go buy a good Tax guide for $15-$30 at a book store which has some great advice on tax savings. Especially for a self-employed person like yourself.
2007-03-24 01:19:32 · answer #6 · answered by Charles F 2 · 0⤊ 4⤋
You tried to steal/cheat on your taxes, your boss told you they'd help you, then at the last minute they did what was legal and you were left hanging - so THEY really screwed you. Think about it - to find the guy who really screwed you, take a look in the mirror.
Yes, it will take years to pay, and be a hardship to you. Learn from it, and play by the rules in the future.
2007-03-24 10:01:38 · answer #7 · answered by Judy 7 · 2⤊ 0⤋
Talk to a lawyer. If you're a young, single parent and it wasn't a high paid job, I don't see how you could owe that much. Something wasn't calculated right.
2007-03-24 01:10:58 · answer #8 · answered by Annie D 6 · 0⤊ 5⤋
I'm 14, with no experience in the area, obviously. But I have seen ads on the television for free debt negotiators. Maybe one of them.
2007-03-24 01:06:59 · answer #9 · answered by Anonymous · 0⤊ 6⤋