OK, so last year my boyfriend worked "under the table" and didn't do his 2005 taxes. I thought he didn't have to since he didn't get any W-2's. So when I did his 2006 taxes, which he did have W-2's, they came back and rejected them because there was nothing on record for 2005. How do we fix this? Are we going to be penalizes?
2007-07-09 08:22:57 · 4 answers · asked by Les 2 in Business & Finance ➔ Taxes ➔ United States
He didn't mean to do anything illigal. How are we supposed to do his 2005 taxes if he never got taxes taken out of his check? Or got any W-2's?
2007-07-10 03:17:52 · update #1
He needs to collect his information for 2005 and file a return - otherwise he is illegally evading taxes for 2005. Working "under the table" and not reporting the income is tax evasion, and is definitely illegal.
The IRS wouldn't have rejected a return for 2006 because there was nothing on file for 2005 - there are any number of people who were required to file in 2006 and not in 2005. E-filing requires the previous year's AGI so that might not have gone through, so he would have had to mail in his return.
So it sounds like now he has TWO years returns to file. There will be penalties for 2005. For 2006, if he has a refund coming he'll get it and there won't be penalties - if he owes, then yes there will be penalties added on.
2007-07-09 08:35:32 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Well, "under the table" is not legal.
If your employer is not going to file taxes on you then it is your responsibilty to still keep track of your income and pay your taxes. I honestly don't know how they can prove that he worked, but I recommend that you talk to a tax consultant ASAP. He is probably going to have to pay back taxes for what he owed from 2005 before he'll get a refund for 2006.
2007-07-09 08:30:25 · answer #2 · answered by Gina Day 3 · 0⤊ 0⤋
Well technically you need to file a tax return for boh years. But the not paying anything in 2005 shouldnt affect whether or not you can file for 2006. It may have been rejected if you filed online and put 0 for his AGI. Since he didnt file a return it wont let you file online without sending in a signature form.
2007-07-09 08:29:48 · answer #3 · answered by BMAC 2 · 0⤊ 1⤋
Taxes are always a pain, but this website might help you out. It help me understand what i was suppose to do when I was fill out my tax return. Hope it helps.
http://articles.directorym.com/Tax_Services-a991.html
2007-07-09 08:29:35 · answer #4 · answered by Ana Pilar R 2 · 0⤊ 0⤋