My friend has been self employed for 5 years but has not paid any taxes yet. She is from Japan but is a US Citizen now. Her family helps support her life expenses every year around $60,000 and she uses that money from her family to invest in real estate over the past 4 years. Unfortunately her rent income never covered the mortgage so she has been cash negative by about $4,000 every month. This have been ongoing for the past two years. She thought since she has a huge loss each year that she would not have to file taxes from her self employed business. What advice would you recommend I give to her before it to late to pay her taxes. Where should she start.
Summary 1) 2004-2005 self employed for 2 years, 2) 2005 - 2007, out of country and in school, 3) 2008 self employed for 6 months, remaining time out of the country, 4) during this 4 year she received at least $200,000 from her family which she invested in real estate where she lost about $4, 000 per month for the past couple of years.
How can she go back to pay 2004-2005 takes from her self employed business also taking into account losses from 2006 and 2007. Are there any tax lawyers in the east side (Bellevue) that she can talk to. Obviously her structure is a mess. Looking forward to hearing from you all soon.
