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Thread: Oh NO - Taxes

  1. #1
    AudreyLeigh
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    Default Oh NO - Taxes

    This year when I go to do my taxes I have a couple probs

    1) I will be 1099 for about 20K but account has had about $100K go through it this year

    2) I was depositing cash from my boyfriend and our roommate and paying the bills with a check - proably accounts for $20k revolving in my account (would this be counted as INCOME because i have no proof)

    3) I didnt know about quarterly until recently, anyone know what this penalty will be?

    4) I didnt (OUCH!) save receipts to offset my fees

    Anyone know how screwed I really am?

    Edit: I have an appointment with a tax preparer/bookeeper Feb 21st but am just curious so I have some info before going in

    Thanks for any info!

    ~Audrey
    Last edited by AudreyLeigh; 11-24-2004 at 10:57 AM.

  2. #2
    Veteran Member DJ_WuLf's Avatar
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    Default Re: Oh NO - Taxes

    Semi-Screwed. Account activity alone is not the only flag for IRS review. Funds in a checking account can be Loans, previously earned/taxed money, or temporary funds. Get a GOOD Accountant who has some idea of the entertainment industry. DO NOT WAIT UNTIL Feburary! Prepare and Send your 4th Qtr 2004 estimate on Jan 15th 2005.

    Being the optomist I am .... I would pay estimates on the 20K you know about on the 1099 in Jan. and wait to see the accountant for the rest (which Im guessing will be about 40-50K gross income)

    Do you have any proof that your BF/RM lived with you during the year? If so that can cover some of the cash activity.

    All in all ....Welcome to the world of the TAX smothered Middle Class.
    14 years working in Strip Clubs. "What a long strange trip it's been"

  3. #3
    AudreyLeigh
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    Default Re: Oh NO - Taxes

    yea, i have the lease agreement with my boyfriend and i on it (not the roommate tho) and ALL the bills were in my name... and paid through my account so if anyone had any sense they could see what was going on..

    think i will call another accountant and see about the quarterly

  4. #4
    God/dess montythegeek's Avatar
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    Default Re: Oh NO - Taxes

    Audrey,
    The penalty runs from date-due to date-paid so anything you pay now reduces your penalty. There is no reason in the world not to pay your 3rd quarter taxes late and estimate high so you paid more than you have due for that quarter alone. to mitigate penalty do that NOW www.irs.gov you want schedule 1040SE.

    You have an enitrely valid explanation for the bills going through your account and the IRS will understand if you do everything else right and do nothing else to look like anything but a nice roomie ("the responsible one") and nothing else.

    Absolutely do not wait for the February appointment. The Fed penalty is not nasty, just not cheap. State governments are much worse. Pay them too if they have an income tax. The odds favor the name of the outfit being Department of Revenue. Or look under Treasurer for the state. Some states are really nasty and penalties can be as bad as the Feds on a fraction of the money due.

  5. #5
    Banned Melonie's Avatar
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    Default Re: Oh NO - Taxes

    Agreed - according to a model I know who also lives in So.Cal., the state Franchise Tax Board people can be real pricks about penalties. I agree that your best option for "damage control" is to hook up with an accountant ASAP, send in late 3rd quarter estimated tax payments to the IRS and Franchise Tax Board ASAP, and then send in 4th quarter estimated tax payments on January 18th.

    You might find helpful.

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