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  #41  
Old 11/02/11, 07:46 PM
Lizza's Avatar  
Join Date: Nov 2005
Location: Oregon
Posts: 4,783
I wanted to give an update. I finally had my appointment with my accountant yesterday (not related to this, just end of year tax planning). I did ask at the end of my appointment what happens to people that are 50 and never filed. He said #1 not my problem (which I do know, I think he was worried the same as others here, that I was asking about bending rules on my part, which wasn't the case). After that he said that it wasn't so unusual to have someone turn in their first tax return at 50, he said that the burden of proof falls on the IRS to prove there was income to file (if you gross under like $2000 you don't have to file) and the way they would do that would be bank records (friend has never had a bank account). Of course he was saying that as someone that represents clients for the IRS and some people don't have the luxury of a long time accountant to represent them and maybe the IRS takes a little more lead way when their is no representation by accountant or attorney, no idea and never want to find out!

We never did hire the friend, husband called him just to check on him the other day and he was doing odd jobs here and there. Coincidentally at class today was employee development and relationships and one of the topics was not making employee problems your problems, it's hard when they are friends I suppose (not that he was ever an employee). Should probably stick to hiring people that haven't been friends. It's a hard economy though and when people you know need work the thing you want to do is help. I do have a hard time detaching myself emotionally from business decisions. Working on that!

Thanks again everyone. It was an interesting thread and honestly never had thought about people NOT filing before.
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  #42  
Old 11/03/11, 01:05 PM
"Slick"
 
Join Date: Apr 2009
Location: Moving from NM to TX, & back to NM.
Posts: 2,341
Thanks for the Update.
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  #43  
Old 11/03/11, 05:54 PM
Ouch! Pinch you.
 
Join Date: May 2010
Posts: 1,868
Glad things worked out.
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  #44  
Old 11/03/11, 09:22 PM
 
Join Date: Jun 2010
Location: Central Texas
Posts: 2,280
Quote:
Originally Posted by Joshie View Post
You can't really do that if he works only for you and comes to work at your place of business daily. A friend of mine was hired that way and her employer got in huge IRS hot water.

It's not exactly ethical anyway. Your friend has shot himself in the foot by being unethical. If he becomes disabled he's pretty much outta luck. Your friend would be best served to start working on the books. I don't see how he'd be eligible for Medicare without five years of work or a spouse without a work history. If he became disabled he'd probably be able to get SSI. If he's never paid SS/Medicare taxes he's going to be in big trouble.

If his income has always been very low he might not even have been required to pay taxes. He'd be best served to pay taxes now. It'd cost him less if he works for you as you'd be responsible for the employer portion of his taxes. If self employed he's responsible for paying the total tax.
Income tax likely isn't an issue. Payroll (SSI/Medicare) tax would be the real problem.

I've known a lot of folks who didn't file for years, but they all had jobs with withholding taken out.

You could just call the IRS and ask I suppose.
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  #45  
Old 11/07/11, 08:08 PM
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Join Date: Dec 2010
Location: Bluegrass Region, Kentucky
Posts: 230
Didn't read all of the posts, but I agree with this
Quote:
No they probably won't come after him unless they have records of W2's or 1099's saying he made money in past years.
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