Options for someone who never filed taxes?
 

Hey guys im wondering what if someone never filed taxes AT ALL and should for like 2-3 years?? Also they never kept receipts, etc, all they have is bank & credit card records, what are their options in becoming up to date with IRS especially if they are self employed and work online and move funds through paypal, etc, and get money from companies, etc...

first bend over

then change your sig to IRS owns ME

LOL its not for me :upsidedow

1. Hire a REALLY good tax guy

2. Call your bank/credit card companies and ask for copies of the monthly statements that you dont have records of.

3. Give these to the REALLY good tax guy you hired.

4. Expect to write a nice large check.

:helpme

it's not for me, it's for a friend :rolleyes:

how much u talking of here? $1k++?

:1orglaugh :1orglaugh

For the tax guy or the taxes?

If you think your only gonna pay 1k in taxes you must not have made very much money.

if you made 50k/year self-employed income, expect to lose 27% or so, pre-deductions. so yeah, thats 40k for 3 years.

bend over.

Depends on how much you made. Also i dont know what state you live in but i assume you didnt file there either if they have income tax...

Either way lube up and set up some payment plans. :(

PS - inquire about setting up a corp with your tax guy. There are very good reasons to have a business and not just a personal SS when dealing with commerce. I wont go into all the details but Im sure your tax guy will explain it all to you.

why are you deciding to claim now? sometimes i wish i never started claiming anything but i didn't want the risk. i usually have to pay around 10k a year depending on my income of course.

The IRS is much kinder and gentler now and there are programs for your friend.....plus they will make settlements.

What they really want is for your friend to come forward, rather than them finding your friend.

He/she needs to hire someone familiar with those who 'evade' taxes.

Find a good accountant that can get your shit in order before you contact the IRS. Dont try to do it on your own.

Not that anyone would ever recommend this but does the IRS know the income levels? are they bugging your friend for payment?

Bullshit. The IRS will fuck you in the ass. And hard.

I went rounds with the IRS starting on Valentine's Day 2005 when I got a letter announcing that the IRS was attaching my wages. Through a friend I was put in touch with a tax attorney (Oddly enough who's last name was Valentine....) and quickly discovered they had put a lien on my house. How can the IRS do that without me knowing? And the amount of money they were trying to take out of my paycheck was staggering also - It left me without enough money to pay my mortgage on a monthly basis.

And the IRS is so screwed up that it's funny. A number of times I had to call the IRS a number of times on the same day, and each time I called I was told I owed different amounts.

Get a good tax attorney is my best advice.

That's interesting to hear.....and I'm sorry to hear that you had to go through this...

But, I've had clients whose tax history was non existent...owing the government a lot of money....and they hired tax lawyers who made the approach, negotiated a settlement, and got the delinquent taxes reduced to a fair amount that could be paid off within a certain amount of time. I admit the IRS is far from perfect; and they do mess up, as every bureaucracy does....

I don't know the details of your story, but, I've also not had your experience. That sounds like the IRS of old, not the present one.....and I can only speak from my own experience and those of my clients.

Contrary to some horror stories about the IRS, this isn't 1955 anymore where the IRS used to really really screw you if you did or didn't owe them.

It's not uncommon for people to not file every year, especially self employed people. I've heard of people going 20 years without filing. Of course they had liens and judgments out the ass, but still had the option to pay the debt.

You will definitely pay all sorts of fines and penalities, but they do work with you and will give you payment plans. Hire a good accountant and/or tax attorney and they will get you through it. Don't attempt it on your own.

any other ideas!

youre an idiot lol
if you wanna go for tax evasion do it right lol
getting money via paypal and normal checks/wires and not paying taxes then is fucking LUNATIC lol

Canada or Mexico, whatever is closer..

I have been through this and the answer is it all depends...

If you have no real assetts (house, car owned outright, boat, etc.) you're in pretty good shape. If you have assetts, prepare to lose them.

If you didn't file, you will be slapped with extra penalties and fees that will more than double what you actually would have had to pay if you filed on time.

The thing you need to do is file and get compliant. And nothing occurs very acutely...it's all a process...it could take many months before you have to pay the IRS anything. The key is to maintain communication and to be sure you contact them before they contact you! It was over a full year from the time I got compliant to the time I had to pay a single cent...and I am on a payment plan now. The second you sign off on a payment plan the penalties and interest stops and you will make 60 monthly payments. If you can't afford the full payment you can submit a budget and the IRS will tell you how much you can afford per month...and then you have to live with that.

If you have no means whatsoever to pay ythe IRS back you file an Offer in Compromise which will GREATLY reduce (close to eliminate) your tax bill. But your future income will qualify as means of repayment.

Bottom line is it's a much nicer, kinder IRS...but if you owe and have assetts, they will certainly take them. But you're not going to go to jail anymore...unless you pull a Richard Hatch and come to an agreement then decide to say, fuck you...I'm not going to pay afterall.

Best of luck!

Nicaragua :pimp :pimp

run away fast!

You forgot:

1b. Hire a REALLY good Tax Attorney.

That should probably just about cover the down payment on the penalties alone :winkwink:

Bend over and spell the word r-u-n

First, seek the counsel of an accountant. Then have them contact the IRS for you. The IRS is actually pretty flexible on payment terms, you can pay them in installments over a couple years even. But its important that you (or your "friend") make the first move before the IRS finds you (or your "friend"). If you wait until they find out no filings have been made you could be in some serious trouble including but not limited to tax evasion. I'd get an accountant asap, get up to date in your filings and get onto a payment plan with the IRS or pay the entire balance in full if you can.

WG

any more info

pay your taxes

Taxes sux

stop working, make no money, get married and have 10+ kids. get foodstamps, and government assistance. eat steak everyday and watch your new rent to own big screen tv. that'll teach 'em.

If the IRS ever finds out, they will crucify you. Remember that.

Sheesh xxweekxx :winkwink:

As Wired Guy says - Strongly advise ya get a tax accountant tomorrow (and make sure he's not a clown) and let him/her handle all contact with the IRS.

You.. or your friend, need to start work and collect all possible paperwork from banks, statements from paypal, cards companies blah. And... do yourself a favor (or your friend a favor) and don't forget stuff, especially epassporte :-)

Then get ready to pay reasonable money and be grateful if it ends up less than you thought. Good luck! :thumbsup

There are so many things in life that is uncertain, but one thing is certain; taxes. So, pay taxes from day one!
It's much much cheaper in the end, you have the right to deduct (and still have all other rights with a legit business) and you'll sleep better.

Get a tax expert. I recommend Joe Ligeri. 508-336-2049.

http://taxprousa.com

You'll eventually get nailed for evasion..pay now while you can

:1orglaugh :1orglaugh

You have many options. You can just start filling, which is what I would suggest if you want to try and come clean. Or you can file for the last couple of years, cut some extra bs off, and build it up each year.

Fact is, if you haven?t ever filled taxes, you are a ghost in the system. Most CPA?s will tell you this, straight up.

Either way, the IRS is not a group of dick heads. They want you to come to them and not them to come to you. If you have a question, call and ask them. They are rather helpful. However, they can be a group of assholes, if they need to be.

Or you can take a different direction. Seeming you have never filled, you legally haven?t ever agreed to pay taxes. From here you should learn what a natural person is, and set yourself properly to work as a natural person. Start writing the IRS and asking for proof that you have to pay (certified letters). Lots to learn if you go this direction.

I got an AWESOME tax lady, icq me, 19375153

That is just the dumbest thing, not to pay your taxes. The government will fuck you up seriously.

You are kinda fucked, with interest, penelties and actual taxes, you will owe them a nice chunk of change....

does he do clients from ALL states..


ALSO everyone saying fines,etc, "my friend" could just file this year and forget the other years. how will irs know?

The only positive is that you had things going through paypal which keeps a full history of payments so if you don't have invoices and reciepts you're not totally at their mercy.

for a quick and dirty estimate, I would figure about 28% for federal, and about 10% for state.


theyll know. I recently was audited for the year 2002.
bring in a TON of paperwork and receipts, they ask for everything.

You think the irs will see your friend made money this year, but made absolutely no income the previous 2 years?

also if youre self employed then youre usually supposed to pay quarterly taxes, and when you miss them you get a penalty.
The penalties are usually hefty to discourage people from sending in their quarterly tax late.
So you may be fined 4 penalties a year for every year you didnt file.

+1 - this information is EXACTLY right.

The IRS is VERY fucked up. One hand does NOT know what the other 1,500 hands within the organization are doing at any given time.

They WILL, (oh yes they will) FUCK YOU, in the ass, HARD, no lube, no sweet talk, no dinner, no thank you when it's over. They play HARD and your average person is NOT the least bit prepared.. ESPECIALLY if you own stuff (house, car, stocks, ira's, etc..)

There are some people on this board who have a concept of what I personally went through (due to a dishonest accountant) and from first-hand, personal experience I can tell you (and even show you the scars) do NOT fuck with the IRS. Do NOT go in unprepared.

If your "friend" doesn't have documentation.. GET IT.. No accountant that you can trust? GET ONE.. Don't have the money to pay? Don't want to lose your assets? No lawyer? GET ONE. Hell, get TEN.

The IRS doesn't care if you can eat or feed your family.. They froze EVERYTHING I had (NO access to ANY bank account, NO investment, NOTHING) for more time than I could have survived if I didn't have friends and family.

Be careful, be prepared and don't just trust someone saying "kinder gentler IRS bullshit".. You go in wearing rose colored glasses and you'll walk out with a bleeding rectum. BE PREPARED. Seriously.