last year(2006) my ex-husband files his taxes and claims that our son worked for him and my ex compensate him for $14,000.00. which is absolutely not true. my son didn't even work for him a day. he just did it so he doesn't have to pay a lot of tax. also my son filed his income tax and didn't file the $ 14,000.00. now my son gets a letter from IRS that he has to pay $4,000.00 tax on that. my son is 24 yrs old and works at the bank and he asked around and finaly one of the bank customer that knows a little about acounting, tells him he knows it's not true and knows that is not his foult but he has to pay that amount. Also my son feels bad to tell his father to pay the tax and doesn't have the money to pay it. pls help i need a proffetional opinion.
2007-07-14 21:38:39 · 7 answers · asked by Saba 1 in Business & Finance ➔ Taxes ➔ United States
Micheal F is right. Your ex did tax fraud! But your ex probly made a w-2 for your son and turned it in. So if you ask them to send you a w-2 they will send you what your ex turned in when he filled. I would talk to your ex and tell him to pay the 4k otherwise I would tell him you where going to call the IRS to dispute and complain that some fraud had been commited!! Say that to him and I am sure he will pay the 4k for your son!! I am sure your ex would rather pay than be audited and fined for fraud. Explain to him you have no other options than him to pay as your son does not have the money!!!!!! And if your son does not pay the IRS they can garnish his wages and cause alot of problems for your son!!!
2007-07-14 21:51:09 · answer #1 · answered by cutegirl 2 · 0⤊ 1⤋
Ouch - what a mess. Family situations like this are tough. Your ex did something totally illegal by filing his return that way. Did your son actually get the $14K and just not work for his dad, or is all of this just a lie on your ex's tax return? Either way, your ex has a problem. If your son knew what was going on, he could also have a problem for trying to participate in tax fraud.
Legal answer - your son should notify the IRS if he didn't receive the money.
If he did receive it but just didn't work for it, he has two choices - the legal one, turn his dad in for tax fraud, and admit his own role in it - or just go ahead and pay the tax. Weirdly enough, since he'd be paying self-employment tax as well as income tax on it, he might end up paying as much or more than his dad saved.
In any case, your son should tell his dad he's not going to be a part of this scheme any more.
2007-07-15 15:41:44 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The IRS runs on a system of checks and balances. If one person reports that they pay another person then Person A doesn't pay taxes on the amount but person B will Have to pay taxes on the amount less the expenses that they have incured in order to make the money.
I know we all get mad and angry with our ex's but is the reason your ex claiming he paid your son is because that is the amount of money he gives him for school? If so he just wrote it off on the wrong form.
There could be several different reasons he wrote 14,000.00 off to your son. The first thing is to find out the true reason of the write off, the second is to find out if it was for business purposes if so; does your son have expenses and if he does: then your son needs to fill out a 1040X form and amend his taxes to include the income and his expenses.
Now, if your son had no expenses and your ex did this solely to evade paying taxes on 14,000.00 Then your ex needs to file a correction to the 1099 that he submitted and correct his taxes as well to reflect that the 14,000.00 was paid out. But you could truly careless about his taxes you are more concerned over the fact that he issues out a 1099MISC with the box marked correct at the top reporting the 14,000.00 income was 0.00 income.
2007-07-15 03:35:21 · answer #3 · answered by anthony j 1 · 1⤊ 0⤋
This is your son's decision but he should not allow his father to pay the tax. In fact that would be fraud on both their parts. You son should contact the IRS and explain the situation. It will mean big trouble for your ex but he deserves it. That is a pretty despicable thing to do to you own son.
2007-07-15 13:21:47 · answer #4 · answered by ? 6 · 1⤊ 0⤋
Daddy needs to file an amended return. If he won't son has to tell the IRS that the 1099 was fraudulent.
What a sad situation, sorry for the son he has been put in a bad spot. Help your son confront the father about this and tell the father that he has to correct his (daddy's) return. He shouldn't be shafting his own child like this, and the son shouldn't be put in this position.
2007-07-14 22:34:31 · answer #5 · answered by ninasgramma 7 · 3⤊ 1⤋
What your ex did was tax fraud.
Your son needs to tell the IRS, and ask them to produce a W-2 showing proof he earned it.
2007-07-14 21:43:26 · answer #6 · answered by Mike Frisbee 6 · 6⤊ 1⤋
Cuff him up! Jail time for papa.
2007-07-14 21:46:22 · answer #7 · answered by Anonymous · 0⤊ 1⤋