i haven't paid taxes in the last four years-(maybe more!) i have just never filed because i make so very little money on paper. my boss however writes me a weekly check and doesn't take any money out. (approx 20,000) a year. my point is how do i get straight with the IRS i want to make sure i am not getting into serious trouble!! help!
2007-08-24 08:57:37 · 8 answers · asked by thankyou 1 in Business & Finance ➔ Taxes ➔ United States
It might already by too late, you could already be in serious trouble with the IRS. So could your boss, depending on how he is accounting for the 20,000 he has been giving you each year. If he's been writing it off as a business expense then he should be giving you a 1099-Misc form and you would be declaring that income and paying taxes on it. You would be responsible for paying regular income tax, both federal and state, on it, as well as self-employment (SE) tax. SE tax is 15.3% of 92.35% of net self-employment income. If you do owe taxes for prior years you will also owe penalties and interest along with the taxes. Please start off by asking your boss how has he accounted for the 20,000 on his end. You may be opening a big big can of worms for both you and him. The only problem though is by remaining silent you will be guilty of tax fraud if the IRS ever catches you, and also if this income is not being reported to the irs it is also not being reported to social security and you are not getting anything credited to you towards retirement.
Feel free to add me as a contact if you want and let me know what is going on with your situation with your boss.
2007-08-24 09:19:09 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Before you panic you need to know what has been reported to the IRS. The first thing you should do is see a Tax Professional to guide you. If you choose to do this yourself you should file an IRS Form 8821 to get a transcript of any income reported by your "boss" or others. You may discover that nothing has ever been reported. At that point you have a big decision. You still owe tax on the 20K each year but the IRS does not know about it. I surely would not advise you on line but you do need to consult with a tax professional regarding your options..
2007-08-25 05:22:26 · answer #2 · answered by ? 6 · 0⤊ 0⤋
You'd be wise to talk to a CPA. Gather up all of your records of what you made during that time. You are likely to owe quite a bit by now, but the longer you wait to straighten this out, the worse it will get. File the back returns and set up a payment plan with the IRS if you can't pay it all at once.
Your boss is paying you illegally doing things the way he is, and he can be in major trouble for this.
2007-08-24 14:33:56 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
$20,000 in income per year is not going to get you an any more hot water than a bill you can't pay. You do need to contact someone who can analyze your situation. I am an Enrolled Agent, a tax specialist licensed by IRS so have a bit of bias so recommend you see one of my brothers or sisters. I question if your "Boss" be treating you as an independent contractor or should he be withholding tax from your pay. You can file Form SS-8 for a determination. If it can be determined you should be treated as an employee, you would be relieved of the employer half of social security.
2007-08-24 11:44:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
20K a year is taxable, and since he does not take out taxes just writes a check you probably receive a 1099 from him every year, which means he deducts what he pays you, but you are treated like a subcontractor. So you not only owe the IRS, but the state, social security etc. I would get an attorney and soon because its the fees and interest that get you more so than anything else. Or you can do what Capone did and eventually get caught for tax evasion.
2007-08-24 09:18:01 · answer #5 · answered by Pengy 7 · 0⤊ 0⤋
What form does he issue you at the end of the year a 1099 or a W-2?
You can stop worrying about getting into trouble you are likely already in big trouble as is boss man.
2007-08-24 11:08:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I can not let you know what's going on, however I definitely believe your ache. I filed at the sixteenth and was once authorized the day after, and given a DD date of one million/30. Then they not on time my refund to processing delays. Then they stated there was once a glitch within the syaytem and do not believe the two/24 date on their internet site. Then they informed me my go back is in mistakes. Then they informed me my go back was once NOT in mistakes. Yesterday, they stated i will have to have DD by means of Feb thirteen (to subtract 10 days from internet site date) and fnally, at present, a hr block rep referred to as me and informed me IRS despatched her an e-mail that they are going to begin to liberate budget for DD recipients the next day to come establishing at 7pm. WTF? Why can not they simply let us know the reality? I'd be just a little extra sufferer and expertise if their solutions had been regular. THis is not anything however further pressure whilst you get informed 500 one of a kind matters. Best of good fortune to you. I feel I would possibly simply begin smoking cigarettes.
2016-09-05 12:49:19 · answer #7 · answered by ? 4 · 0⤊ 0⤋
You may already be in serious trouble. You should start by contacting a tax attorney who can help you settle up.
2007-08-24 09:02:10 · answer #8 · answered by Suzy 5 · 0⤊ 0⤋