Okay, I have a very difficult tax problem I just found out about after filing my taxes this year and my refund went to IRS debt.

Asked 6 months ago - Ada, OH

I didn't know I owed the IRS money,I called the IRS and they said in 2007 and 2008 that my ex-employer,my uncle,and I lived with them, issued me a 1099 for those two years but never gave it to me or sent to me.My uncle refused to give me any kind of proof of ANYTHING.He paid me cash and told me what they gave me was what was left after withholding my taxes. Whenever I asked for proof of income or how I'm supposed to file taxes each year,he told me it was none of my business and that everything was taken care of.I was stuck making hardly anything as a CDL truck driver so I couldn't afford to move out and would threaten me being kicked out if i left him.IRS is sending me an ss-8 form but my case is really hard to figure out what I'm supposed to do next since He would throw away my ownrecords

Additional information

I ended up leaving in 2009 but got laid off in 2011 in TN so I got talked into moving back in and working for him again.He said pay would be better and I also missed my family in OH.Pretty soon after I realized it was going to be the exact same, but I was stuck again.I was then offered a great truck driving job from the company my uncle was leased on to in June 2013.I took it and got kicked out immediately.I now also know he didn't claim,file,or issue 1099s or w-2s or anything at all for years2011,2012,2013.would a tax advocate help?I can't afford a lawyer PLEASE PLEASE HELP again, I have no proof to prove innocence

Attorney answers (3)

  1. Donald Erich Lowrey

    Contributor Level 14

    3

    Lawyers agree

    Answered . It sounds like what you are saying is: You worked as long haul driver for your uncle, who was leased on with a carrier with DOT interstate authority. Now the IRS is dunning you for back taxes. If I have that right, your issue is not "innocence" but rather the correct amount of tax or refund due.

    You have a duty to file a tax return, even if you did not receive a W2 or 1099. The law requires you to make a good faith estimate of your income. A 1099 is issued to an independent contractor, not an employee. Withholdings are only taken on employee wages, rarely to contractors. The IRS will provide you with a transcript of all withholdings deposited to your account if any.

    Find an accountant, go through your log books with the accountant to help you estimate your income. Prepare and file a tax return for each year. To report your uncle, file IRS form 4852 Substitute for form W2. The IRS will likely as him to produce employment records.

  2. Brad Howell

    Contributor Level 13

    1

    Lawyer agrees

    Answered . The Form SS-8 will allow the I.R.S. to determine whether you should have been treated as an employee or an independent contractor. If you were an employee, then your uncle would have been liable for paying the employer's share of FICA taxes (Medicare and Social Security). In that instance, you would be liable for the employee's share of FICA taxes and your income taxes.

    If you are classified as an independent contractor, however, then you would be liable for the entirety of FICA taxes as a self-employed individual. If your uncle issued a Form 1099 to the I.R.S., then he was reporting you to the I.R.S. as an independent contractor. Of course, he doesn't have the option to classify you as an independent contractor just because he wants to; you'd have to meet the legal requirements of an independent contractor. Many truck drivers are, however, considered independent contractors, so it's very likely that you will be liable for the entire amount of FICA taxes owned.

    Even though you may have not received the Form 1099 from your uncle, it is your responsibility to report income that you earned on your tax return. If he was paying you cash, then you should have kept up with what was paid to you so that it could be reported on your return. Even if he was withholding taxes (which it is clear that he wasn't), you still have to report the earned income on your return. You should have never blindly accepted him at his word, especially after he informed you that your tax situation was "none of your business."

    You should collect any documentation that you can which may allow you to offset the income that you earned according to the Form 1099. This would include receipts for maintenance, gas, meals while traveling away from home, etc. If you do not have any of this documentation, then you need to accept the assessment as is, because you can't challenge it without documentation. You'll need to arrange some sort of payment plan in order to pay off the balance owed to the I.R.S.

    Although this is not an ideal solution to your situation, hopefully this will serve as a lesson to pay closer attention to how your employers treat you in relation to your income and explanations as to your tax liability.

  3. Jeffrey L. Cohen

    Contributor Level 13

    1

    Lawyer agrees

    Answered . SInce your case is a sympathetic one, and somewhat complicated, you might want to check to determine if there is a Low Income Taxpayer Clinic in your area. If you go to the IRS website, www.irs.gov, and look under the Taxpayer Advocate Service tab, you can find out where the Ohio clinics are located.

    This is not intended to be legal advice, and is general in nature.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

26,855 answers this week

3,058 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

26,855 answers this week

3,058 attorneys answering