[Knaledge]

I'm kind of worried here...

I don't know why I didn't, but it is what it is. I just didn't file my taxes for 2005 and 2006. I also worked for a company in 2004 that paid me in personal buisiness checks that I would cash at citibanks, etc. but they never had me fill out any paperwork and never sent me a 1099 (?). I was told I should try and "guesstimate" how much I made (on the high end) and pay the amount I think is correct (after calculation) for taxes there for that job.

I have all my W2's from the places I have worked for the years above (save for that one about 2004, of course) and am wondering what to do.

I've been told to just seek out a CPA and have them help me file all my "back taxes". They say I won't go to jail but that I will probably incur a ton ($10,000~) of late fees/penalties, etc.

I've always claimed "0" and of the two times I've fild taxes prior (2002 and 2003) I've always gotten money back. I'm 100% positive I would have gotten money back from these taxes had I filed. Just saying.

So really... what do I do? Am I going to go to jail? I didn't make a whole lot... each of the W2's I have all show $17,000 or less (as in, one shows $17,000 while the others were from the same company but for the end of the previous year for around $1,000-$5,000). I've never worked a job over $28,800/yr (Dec. 2005 and all of 2006 until Nov.) and previous jobs had always been about $20,000 or less.

I have a really nice job now, it doesn't pay much but it's what I want to do and my girlfriend and I have been together for almost two years and things are finally starting to shape up. I just don't want to have to abandon all of that because of mistakes I've made. Although, I guess that would be the consequence unforseen at the time of my actions (inaction?)

I'm pretty young and don't want to screw up my life too badly because of money... especially money I've essentially already "paid" if you will. Is there any resolution? Am I screwed?

Didn't Bush say something about people being able to file taxes of any sort for anything ever with no "worries" this year? I may be wrong...

I almost feel like calling the IRS but I Was told that'd be the worst I could do. In fact, about the whole CPA thing... I was told if I come forward first, it shouldn't be that big a deal but... I just don't want to make any wrong decisions... now.

Thanks for the help, if any is provided. I'll check daily!

[hippiechick83]

You don't need a CPA. Find an H&R block tax office that is open. Talk to a H&R tax specialist or higher(ex. Senior Tax Specialist) Usually there is a district office that is open year round. It is a relatively simple problem to remedy. I have seen much worse tax situations remedied. Good Luck!

[hippiechick83]

Oh, and filing back taxes is simple, you just cannot e-file. You have to file through the mail. H&R Block is awesome and can help you!

[Knaledge]

Thanks for the reply. I was told H&R Block might not be the best place for me (though not much elaboration was given on the point).

Why not a CPA? Is there a disadvantage? I'm worried about the repercussions since I was told this is considered tax evasion more than likely.

I didn't mean to evade taxes I just am not sure quite why I didn't file my taxes..

I appreciate the reply though and am hoping to hear from others as well to comment on the above and my initial concern(s).

Thanks again! Next day off I get I'm heading to somewhere that can help me with this.

[Fr_Chuck]

No, but you will need to file, Even if you owe money and don't pay them on time, it is not filing, that will get your in the most legal troubles.

Yes, you need to get in your returns even if you owe money and can't pay it right now, just file.

But if you don't have a lot of hard issues, but along with the 1099 issues, self employment gives you a lot of tax deductions ( if you keep all of the receipts and the such)

A CPA just costs more, but stop worrying about who to have do it, pick someone and get the paper work filed.

[hippiechick83]

H&R Block is the only place that I do my business, mostly because my mother is a Tax Specialist and she is sitting right here telling me what to type. Lol No, but really, H&R has a "Piece of mind gurantee" that you can purchase for $29 and a Certified Tax Specialist will represent you if there is any problems with the IRS. As for a CPA, they have CPAs employed through H&R if you need it. It doesn't really matter who you choose to do your business with, but you need to get right on it.

[AtlantaTaxExpert]

HippieChick:

Sorry, but we really cannot consider your opinion about H&R Block to be "unbiased", now can we? :-)

Knaledge:

If you claimed "0" exemptions on your W-4, then I would bet my tax preparation fee that you will get a refund for BOTH 2005 and 2006.

I can prepare those returns for you. Contact me at my email address ([email protected]) with a phone number and I will call you to discuss these issues.

You CAN still efile the return for 2006, but you must file the previous years returns FIRST, or the IRS will put a hold on the 2006 refund until they are filed.

As for 2004, you must file Schedules C and SE for the money earned. You MAY or MAY NOT owe money for 2004. I will know for sure once I speak with you.

[hippiechick83]

So Tax Expert... do you work for Jackson Hewitt? LOL My mother and sister are both H&R Block employees and I am going to be training this fall to work at H&R... My mother has gotten people out of similar situations... she's quite good. Plus, I get free returns done... hehehehehe

[Knaledge]

Thank you all for your advice and reassurance.

I know this must be common around here but it is quite odd how small the world seems to get for the individual once in need. Thank you again and I will be contacting you (ATL Tax Expert).

Sorry for the late responses, by the way. We're shipping our next football title next month and it's been very daunting of a task.

I will be asking this in the e-mail but just so everyone here has an opportunity to give feedback, am I correct in understanding that I may not actually have any "fees" or "penalties" incurred?

Outside of the fee I'm sure will be way over my budget for getting this fixed by someone, I'm more-so interested in the actual fee imposed by the IRS for having filed late.

This is just me being for once very happy with things in my life and having this one dark cloud looming on the horizon that I just don't want to rain on my parade, making it all go away.

THANKS AGAIN!

[AtlantaTaxExpert]

HippieChick:

I am an independent operator. I have had interaction with workers from BOTH H&R Block and Jackson Hewitt, and, unfortunately, I have experienced a wide spectrum of professionalism and expertise with employees from BOTH chains.

I have worked with and found several H&R Block employees to be VERY knowledgeable and VERY professional, and then the next day interacted with another H&R Block employee who is little more than an data entry clerk who would be lost if he/she did not have tax software and a checklist to guide them. Since I have NO WAY of knowing which employee the client would meet, I cannot recommend H&R Block to anyone.

Knaledge:

I have gotten your email and will respond shortly.

[hippiechick83]

CaptainRich: You can kiss my grits pal... so if you're such an expert, then where is your expert advice? Big man... little brain... so sad. Yeah, I have a bad attitude towards ignorrant people.

[Ken 297]

I have used both H & R Block and a CPA for taxes
On a straightforward return H & R was quite good.
As my returns got more complicated I found an chartered accountant to be well worth the extra money.
You shouldn't worry about penalties unless you owe money.
The government however, will not pay you interest on any money they owe you if you do not file on time.
Either way you should file as soon as possible for your own peace of mind.

[hippiechick83]

Knaledge: I was letting you know what I would do in your situation. I've never delt with anyone other than H&R, I also stressd that no matter who you chose, you needed to take care of that asap. As far as other people's rude comments, fuggettaboutit.

Ken 297: Great advice... basically, what everyone is stressing is that it needs to be done immediately.

[CMYK]

You are pretty much screwed. Have fun. :)

[AtlantaTaxExpert]

He is NOT screwed. He just needs to get this back tax issue resolved.