friend doesn't want to report his income to the irs?

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  • friend doesn't want to report his income to the irs?


Answer #1 | 22/12 2013 12:31
If you do tax returns yourself don't leave your fingerprints on his.
Positive: 66.666666666667 %
Answer #2 | 21/12 2013 22:49
Not reporting is tax evasion. Check out Lauryn Hill, Wesley Snipes, Al Capone. Once he is caught in addition to federal and state taxes there is a penalty for not paying.
Positive: 50 %
Answer #3 | 22/12 2013 00:20
When his customers get audited, the IRS will notice those checks and will back track to him. If his customers are businesses themselves, they will issue him 1099-Misc forms. By the time the IRS catches him, the tax bill will double or triple.
Positive: 50 %
Answer #4 | 22/12 2013 04:43
Just that it is NOT a very smart thing for your friend to be doing during each tax year for that purpose and time in life because it could cause some bigger problems later on in time of your friends life time. Whether you do get the 1099 form from THEM or you do NOT get the 1099 form from them you would still be required to Use your own good daily written receipt books and records in order to correctly complete your 1040 income tax return during the 2013 tax filing season. Self employed independent contractor using your daily written receipt book records to report your gross income on the schedule C or CEZ along with the SE to determine your NET PROFIT or LOSS from your business income during the tax year for this purpose. SE your social security medicare tax amounts that you would OWE on your NET profit amount that would end up the page 1 line 12 from the schedule C and any SE tax owed page 2 line 56 and page 1 line 27 Deductible part of self employment tax attach schedule SE line 27 $$$ amount. Starting, Operating, or Closing a Business Starting a Business Starting a business could be exciting. If you're considering starting a business, start here. This section provides information on everything from a checklist for a new business, to selecting a business structure, and more.,-Operating,-or-Closing-a-Business Online Learning Tools The Small Business Taxes: The Virtual Workshop is composed of nine interactive lessons designed to help new small business owners learn their tax rights and responsibilities. The IRS Video Portal contains video and audio presentations on topics of interest to small businesses, individuals and tax professionals. Page Last Reviewed or Updated: 31-Oct-2013 Hope that you find the above enclosed information useful. 12/22/2013
Positive: 50 %

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