My husband worked for his uncle in 2004. He was paid cash and never received a stub. He was an employee as far as we were concerned. He used his uncle's tools, drove his uncle's work truck and was dicated to by his uncle when/where/how work was to be done. His uncle filed a 1099 for him and after many discussions with the IRS we were told there was nothing we could do since we kept no records of earnings or expenses. We paid all the penalties and fees and spend 2 years in debt with the IRS. Is there anyway to fight this now that it is paid off and get our money back? Should we even try?
2007-12-21 16:24:03 · 5 answers · asked by rckpenguin 1 in Business & Finance ➔ Taxes ➔ United States
Thanks in advance! : )
2007-12-21 16:24:30 · update #1
Actually this was before me and my husband were married so I had nothing to do with it but "reap" the benefits! My husband's uncle told him that he was taking care of the taxes, which my husband took as meaning he was taking out the taxes. I don't want to get all the money back, but I was wondering if the uncle should have been responsible for something. I have had a job since I was 17 and paid ALL my taxes without a complaint and so has my husband we were not trying to be sneaky! We just trusted his sneaky uncle. Thanks though for your judgements, you seem like nice people : )
2007-12-21 16:44:41 · update #2
Your husband could file an SS-8 form and attempt to argue that he was actually an employee. Presumably as self-employed his taxes worked out to 30-40% of the gross pay. If he was determined to an employee, this would drop to 22-32%.
Of course the IRS would then seek to collect the missing 7.65% from the Uncle.
First you file the ss-8, then you wait for the determination and if deemed an employee, then he can file the amended return. I'd start immediately since the refund is sometimes limited to the taxes paid in the 2 years prior to the amended return.
2007-12-21 16:59:48 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Of course you can't get any money back. The only issue here is that 'the uncle' may have used your husband as an independent contractor instead of as a regular staff employee. If you contested this situation, the uncle would end up paying for half of the SS contribution vs you paying ALL of it because of self-employment.
If your hubby was paid cash with no tax withholdings, a red flag should have gone up immediately on your part. You didn't complain then, so why are you complaining NOW ?
2007-12-21 16:33:10 · answer #2 · answered by acermill 7 · 0⤊ 1⤋
It is not "Your Money" you stole it from the rest of us who pay our taxes. You are supposed to report all income on your taxes whether you get a stub or not, Why on earth do you think you deserve any thing but the fines and penalties you got ? Your lucky your not in prison. How do you think the FBI gets mobsters ? They follow the money and get em on tax evasion. The uncle did the proper thing he kept tract of payments and reported it on form 1099 like he is supposed too. I am sure he would have provided you a copy if you had bothered to ask instead of being sneaky and thinking you were getting away with tax evasion.
Not only are you a cheater you are also a liar. right on the 1040 it says "Did you recieve any income "NOT on a W2" you both lied and put a big fat zero on that line didnt you.
2007-12-21 16:35:49 · answer #3 · answered by sfcjoe4d 3 · 0⤊ 1⤋
if his uncle was really paying taxes to the IRS, he would have to give a W-2 at the end of the year. If he really didn't pay the taxes like he was supposed to do and was doing some under the table kind of deal, well he got off by cheating the government.
2007-12-21 18:22:10 · answer #4 · answered by Jopa 5 · 0⤊ 0⤋
yes he need to because they find out everything
2007-12-23 05:54:15 · answer #5 · answered by lovely 1 · 0⤊ 0⤋