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How should i file taxes if i havent filed in 5 years?
5 years ago the company i worked told me that they were going to start paying me as an uncategorized expense. One thing led to another and i didnt file taxes that year and here i am 5 years later and i havent paid taxes in 5 years. My boss said he was going to take care of it but im trying to figure out what my options are so i can get caught up and get it over with this year.
What is the best way for me to file? Do i even have another option besides self employed? What can i expect as far as a payment plan from the IRS? Should i hire a tax attorney or is this a "happens every day" thing where i can do it on my own?
Please add anything else i might need to know. TIA
8 Answers
- Anonymous1 decade agoFavorite Answer
A. You have a mess.
B. You seem confused and unable to deal with it by yourself.
Take you records to a tax professional and let him sort it out.
I have a canned explanation to apparently clueless independent contractors and, if you are asking relatively simple questions in this forum, no offense, but you qualify as clueless:
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 employee'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.
Source(s): http://www.irs.gov/pub/irs-pdf/fss8.pdf... http://www.irs.gov/pub/irs-pdf/f8919.pdf http://www.irs.gov/newsroom/article/0,,id=175457,0... http://www.irs.gov/newsroom/article/0,,id=177092,0... http://www.accountingweb.com/cgi-bin/item.cgi?id=1... - 5 years ago
Wrong answers.... If you made a certain amount of money regardless of weather or not YOU think it was or wasn't enough money to file is just an excuse they will NOT listen to. You should always file especially if you were NOT paid with just cash. Just cash cannot be traced unless you sign papers on such and release your personal information to your employer for tax filing purposes or insurances such as FICA OR FUTA. Most income under 3000.00 is not enough to file taxes on. But I've done taxes for people who have made little money such as less than 3k and was still able to claim a Right to work credit, and a few other credits currently offered by the IRS. As well as was considered low income and received all that they paid in to both federal and state. So, as I am not condoning not filing, if it was cash then I probably wouldn't however, it must NOT have been entirely just cash or the IRS wouldn't have known about it. Also, it must have been much more than 3k and you weren't paying in taxes period or they wouldn't claim you owe anything anyway. I am saying this because I have been there and done that. Personal experiences. Remember also if they know about it, they are taking on late fee's and penalties... and those add up fast. So act quickly.
- 1 decade ago
Did your employer tell you if you were an independent contractor
instead of an employee? The difference is instead of receiving a W2 form, you would receive a 1099 form stating your gross receipts from the company. If you receive a 1099, then you are considered to be an independent contractor and need to file a 1040 plus a schedule C, which means you own your own business.
Now, there are a lot of rules (tests) for the legality of your employer's actions. These rules concern the amount of control he has over the time and hours you work, and pay you get (is it negotiated, or dictated ). I'm not a lawyer, but you may want to consult the tax attorney. If legally you are still an employee, your employee may be liable. Good luck!
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- Anonymous1 decade ago
WHY are you going to INCRIMINATE yourself by giving them the info they need to hang you?
Let sleeping dogs lie.