My fiance is self employed and hasn't filed taxes in seven years. I have gone through and sorted all receipts

Question

What do I do now?

We arent married yet, but are living together for a year now. I sometimes call him my husband. Sorry if anyone thought I was trying to bulls**t them.

Answer 1

Take all those sorted receipts to a good tax preparer. Then, stay out of it until this matter is settled, then consider marrying him.

Answer 2

You most definitely will need to file a Federal Income Tax return next year. There is no question about that. As to the state, I would assume that you will need to file an annual income tax return with your State Department of Revenue and report your total income for the year and that you should be able to take a credit for the amount of taxes you have already paid throughout the year. Do you have an independent accountant working for you? If so, you might want to ask him or her this question, or if you are maintaining your own books, call your State Department of Revenue and speak to someone there. I am sure that someone working for this office will take the time to explain the procedure better than I can, especially when I do not live in the State of Washington.

Answer 3

As a matter of policy--written in the IRS manual--it will require filing of the last six years returns unless there was fraud. Negligence is not fraud. Do the six. Returns showing self-employment income must be filed within three years of the due date--this means 2004, 5 & 6--in order for the income to be credited to the taxpayer's social security account. Self-employment tax (social security and medicare for the self employed) will still be due, but the taxpayer will get no benefit. If you plan to marry this guy, make sure he has his tax problem under control before you say I do, or his problem will become your problem.

Answer 4

This would be a good time for him to take all the info to a CPA or enrolled agent. This is NOT something he should go to someplace like H&R Block for.

The CPA will prepare the returns for the missing years, and your fiance can file them. If he owed money for those years, there will be penalties and interest on the unpaid amounts, so if he made much of anything, he can expect a hefty tax bill.

Answer 5

You will have to obtain past tax forms for the previous years and file accrodingly. Once they are filed, you will probably be looking at an audit and fines and penalties. You might want to either get an accountant or set up an appointment with the IRS now rather than letting them receive it and then come looking for you.

Answer 6

Go to IRS.GOV and you can pick a year, type it into the search box and a link to the forms for that year will appear.

If there are potential refunds, start with 2004 first. Then the earlier years. (Refunds from 2003 and earlier are barred by statute, but at least you show he doesn't owe for those years.) If he owes, plan on the bills at least doubling due to penalties and interest.

Answer 7

1. Have him hire an accountant or EA to sort this out.

2. Postpone the wedding until this is done and all back taxes are paid.

Contrary to what another poster stated YOU cannot be held liable for anything that happened prior to your marriage but his finances will likely be FUBAR for quite some time. He has a poor track record and you don't need that kind of stress in your marriage.

Answer 8

Thats really not good at all, he could get into lots of trouble, and will probably owe ALOT of money tho the IRS. But he needs to see a tax specialist ASAP!!!

Answer 9

Wow. Not cool! It will eventually catch up to him. My uncle is in jail for tax evasion. Something you don't want to mess around with. Seek a tax adviser asap.

Answer 10

First you need to realize or find out how much he hasn't paid in taxes. Once you find that out, you need to see if its viable to pay that. If not, the IRS can probably work something out with you. They will be glad you went to them, and they didn't have to search you out.