I haven't done my taxes in 2 years. I'm a 1099 employee.?

Question

And I haven't goten my 1099's yet. my boss hasent done his either. Can I make estimated payments.

Answer 1

As a self-employed individual you are required by law to keep accurate records of all of your income and expenses. You should NEVER delay filing due to a lack of a 1099 from a customer!

You are now facing penalties for late filing and penalties and interest for late payments for your 2006 return and if you haven't filed for 2005 yet, that year as well. The time to be making estimated payments was during the tax year, not now. If you have the money set aside go ahead and send in a payment for the missing years to at least stop the clock on the penalties and interest for late payment. Send two separate checks and mark them with your SSN and "Tax Year" followed by the year that they apply to. Then follow up immediately and file the missing returns. The IRS will bill you for any penalties and interest and you can then set up a payment plan for the balance.

Then, start making the required estimated payments for the current tax year NOW. Send in the September 15th payment immediately for half of your estimated tax bill and the other half by January 15th and cross your fingers that you don't get hit with more penalties for late payment of your 2007 estimated taxes.

If you're facing 2 years of back tax returns plus 2007's, I'd strongly suggest that you find a CPA or EA to help you get the ball rolling on this. Don't waste your time with the storefront tax prep mills, you need competent assistance and you need it immmediately. Get in before the filing rush after the New Year.

Answer 2

1099 employee is a contradiction. Are you really a misclassified employee?

I have a canned explanation to apparently clueless independent contractors:

Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. The basic issue is the amount of control the employer has over the worker. If you are required to show up for work--personally--at a particular time, punch the clock, use the employer’s equipment and are paid an hourly rate, or another set rate based on time served, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employer's half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement in this abuse area.

Answer 3

You are not required to have a 1099 to do your taxes. Get your income and expense records together and file your taxes. If you go to a preparer now, they may be able to do it right away. If you delay until January you may have to wait.

Once you know what your taxes are, you can make a partial payment and set up an installment arrangement for the rest.