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Thread: Another Class Action IRS Question

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    Default Another Class Action IRS Question

    Hey dear girls, I'm a newbie, read lots of info about my question here but still was not successful to find a solid answer I'm looking for! So my club has been sued for the same reason what must of them treating independent contractors as employees, the club lost in lawsuit and owner is encouraging as to take the paychecks since he doesn't want all the money to go to the girl who sued us. Most of us never paid taxes and never received 1099, will this check attract IRS attention? Does it mean we are admitting for working there all this time and not reporting? Or the check will have no link towards the length of the work? Will we go on public record and how? The lawsuit lawyer is strongly encouraging to take the check and is pretty much guaranteeing that IRS won't go after us even though 80% of that gets taxed for 1099, and 20% for W form. Sorry for the long rant, hopefully someone can help.

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    Default Re: Another Class Action IRS Question

    Quote Originally Posted by AdOre View Post
    The lawsuit lawyer is strongly encouraging to take the check and is pretty much guaranteeing that IRS won't go after us
    Lol....never trust the words of two people, politicians and lawyers

    have you been filing your taxes every year? if so, what have you been putting on them as income?

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    Default Re: Another Class Action IRS Question

    Most of us haven't.

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    Default Re: Another Class Action IRS Question

    Quote Originally Posted by AdOre View Post
    Most of us haven't.
    Regardless of what that lawyer is saying, the lawsuit in and of itself may attract IRS attention whether girls take the checks or not. Especially if the lawsuit was a large one. Virtually anything can attract IRS attention if the money seems like it might be worth their time. It's WAY less stressful to just be up on your taxes and have proof of income (as best you can in this business) than worry about things that might be on their radar.

    A large check ($10k+) only raises suspicion if your bank flags it as such. A cash deposit of the same amount can trigger an audit.

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    Default Re: Another Class Action IRS Question

    I didn't even have my work permit few months ago so working legally was not even an option. If I start paying taxes now, won't it raise a red flag for IRS with questions what was I doing before? Will it show on background check that I am stripping?

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    Default Re: Another Class Action IRS Question

    Quote Originally Posted by AdOre View Post
    If I start paying taxes now, won't it raise a red flag for IRS with questions what was I doing before?
    you can't put it off forever,

    have you been filing your taxes every year? or have you not been filing your taxes?

    even if you report zero income, you still have to file your taxes

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    Default Re: Another Class Action IRS Question

    Quote Originally Posted by anyacolo22 View Post
    you can't put it off forever,

    have you been filing your taxes every year? or have you not been filing your taxes?

    even if you report zero income, you still have to file your taxes
    ^ Not true! When I wasn't working or doing anything I never filed. You are a waste of time in the IRS's opinion if you have not worked that year & had any sort of W-2 or 1099 or any real income coming in. Like seriously if you didn't get a 1099 or fill out any kind of W-2 or W-9 type stuff from that club then I wouldn't even worry or bother. They aren't worried about you trust me.
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    Default Re: Another Class Action IRS Question

    Quote Originally Posted by xxxGothBarbie View Post
    if you have not worked that year & had any sort of W-2 or 1099 or any real income coming in. Like seriously if you didn't get a 1099 or fill out any kind of W-2 or W-9 type stuff from that club then I wouldn't even worry or bother
    no self employed contractor gets those things, so your saying anybody who is self employed does not have to file taxes?....you are delusional....just because YOU never filed does not mean you dont HAVE to file, that is only the decision YOU made on your own, you could get calls and mail years later telling you to file for those previous years,

    remember this....nobody goes to jail because they can not PAY their taxes....people go to jail for not FILING their taxes,

    and just because you are not on their radar today does not mean you won't be tomorrow or in years to come, i personally KNOW a dancer who never filed, 10 years later they came after her and she ended up owing over 10 grand, she lost everything because of it, they even took her car....dont mess with the IRS

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    Default Re: Another Class Action IRS Question

    Yes. The check will attract attention. It's a paper trail proof of income with your name on it.

    How much is the check???? If it's $600+ then you refuse and take cash but most likely the club/lawyer will keep record of who they pay out and how much and they may report this to IRS so if you don't also report the same - it could raise a red flag so just err on the side of caution (hire an accountant and report your earnings)

    Read the IRS website or call their 800 number for most accurate info but you are supposed to file taxes if you earn over $600 for the year whether or not you received 1099. If you made less than $600 it's optional but recommended you file anyways.

    Id think an accountant would be able to advise you on tax related subjects better than that lawyer. Whatever this lawyer is guaranteeing you need to verify with an accountant or your own lawyer AND get in writing.

    Also, independent contractors - its recommended to form an llc and have your business receive payments not you. This way if anyone even IRS tries to sue they have to sue your business/go after your business assets instead. This saves you from having to fork over your personal asset in a losing lawsuit. How you think Donald T. Rump filed for bankruptcy three times but still rich as hell???
    Last edited by miss.a.p1600; 04-05-2017 at 09:55 AM.
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    Default Re: Another Class Action IRS Question

    Quote Originally Posted by anyacolo22 View Post
    no self employed contractor gets those things, so your saying anybody who is self employed does not have to file taxes?....you are delusional....just because YOU never filed does not mean you dont HAVE to file, that is only the decision YOU made on your own, you could get calls and mail years later telling you to file for those previous years,

    remember this....nobody goes to jail because they can not PAY their taxes....people go to jail for not FILING their taxes,

    and just because you are not on their radar today does not mean you won't be tomorrow or in years to come, i personally KNOW a dancer who never filed, 10 years later they came after her and she ended up owing over 10 grand, she lost everything because of it, they even took her car....dont mess with the IRS
    First of all you have no business coming onto this forum being rude & calling others "delusional". Secondly I never said you don't have to file, all I'm saying is if you DIDN"T work AT ALL ANYWHERE for that years or years & have nothing to file then don't worry about it. Please read & understand before running off at the mouth Thanks
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    Default Re: Another Class Action IRS Question

    Just be happy you don't owe them 6 grand like me haha, my club sent me a K1 claiming me as a "partner" so I would pay their half of the taxes. You really have to ask what form you will receive by the end of the year and if not, then do quarterly payments of 15-20% to be on the safe side (what I'm doing now). That way by the end of the year you may even get a refund but at least you are paying in. Trust me- those interest charges RACK up and before you know it you're in the hole 10 GS.

    Also should I state the obvious? Don't deposit all your cash in the bank.
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