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beemooree · Feb 3, 2011, 10:46 AM

My sons mom who worked under the table used the company she worked for when she filed her taxes. She didn't report the $ she was getting. She also didn't get a w2. What's going to happen to her? Will she get the $ and have to pay it back? Or will they catch her in the process? She thinks just because she has a child she will automatically get money

smoothy · Feb 3, 2011, 10:51 AM

So... she is going to pretend she earned a certain amount and try to defraud the government? Because without any documentation proving how much she earned... whatever she claims won't be able to be proven, and its prove it or its not real when the IRS is concerned.

IRS requires documentation for nearly every thing on your return. Not providing it WILL get her flagged and have a personal 1 on 1 audit with an agent... and the potiential to get ugly would be great.

joypulv · Feb 3, 2011, 11:06 AM

Plus, if the IRS feels like doing a check on the company, they could get in even bigger trouble.

But what does this mean? 'She didn't report the $ she was getting.'
Did she file no income or not? Did she think she'd get the Earned Income Credit just by putting a company name down, and no income? You have to have earned income, like the name says. This doesn't make much sense. Hopefully they will send it back and say incomplete. Hopefully.

beemooree · Feb 4, 2011, 12:09 AM

joypulv when I said "she didnt report the $ she was getting" that means while she was working and getting paid under the table, she didn't tell the IRS or county. She was receiving county aid and working under the table.

beemooree · Feb 4, 2011, 12:37 AM

So basically they're going to audit her? And what? Will she penalized?

joypulv · Feb 4, 2011, 03:57 AM

In theory, all sorts of people can get in trouble, starting with her, and she might have to pay back the free money she got from the county, and be denied future benefits. She may be audited and audited for years to come. The company she put on her taxes would be fined for all the taxes they didn't pay plus interest and penalties, and shut down for labor violations.

In reality, it remains to be seen what the IRS will notice.
We all struggle with ways to survive financially. But this takes the cake.

smoothy · Feb 4, 2011, 06:00 AM

If they audit her... and find a problem.. they can and will go back to previous years returns and audit those too. And yes... the more irregulatities or fudging that was done... the higher the penalty is going to be... and why it can escalate really fast. Not to mention once caught she will be on their radar ion the future for a lot of years.

And the IRS can seize almost anything... you DON'T ever want to be on their S**t list.

beemooree · Feb 5, 2011, 11:44 PM

Do you guys know if the IRS and county cross reference each other?

joypulv · Feb 6, 2011, 04:59 AM

You aren't getting the message. This isn't a Stick it to the Man site.

Plus you didn't answer my question of what she put on her tax form. Let's say she put the company name and the amount they paid her under the table - no W2, no 1099. The IRS is going to look for the company copy, and it isn't going to be there. And so on. Now the IRS is huge, and many of these things take about 2 years to catch, but when they catch both her and the company, life will be hell. And that's not even counting the aid she didn't report. Two separate issues.

Plus no place I've ever lived had 'county aid,' only state and federal. So whether her aid is cross referenced is anyone's guess. If she got a year end statement of aid, it was probably a 1099, and yes, that is.

smoothy · Feb 6, 2011, 08:22 AM

The IRS knows all, The IRS sees all. (figuratively speaking of course)

Yes EVERYONE notifies them about everything. They are required to under the law. The electronic paper trail for money is there... it doesn't go way.

Unless you are TRYING to get arrested... listen to what we are saying. Besides... the IRS can garnish and seize things no other collection agency can.

Its like taking on a Dragon naked... with nothing but a ripe bananna in your hand.

Is this about your sons mom... or is this about you? The more you say the more it makes me wonder.

beemooree · Feb 6, 2011, 10:53 AM

I don't know what she put on her tax form. All I know is that she went to her tax preparer and gave them the company name, address, and phone #. And what do you mean this isn't a stick it to the man site? And county= cash aid for welfare

beemooree · Feb 6, 2011, 10:57 AM

Its about her. I was just curious as to how they will find out and what her consequences will be. I was told by someone in that field that she can't file taxes because she didn't earn # and because she's on public assistance

beemooree · Feb 6, 2011, 01:55 PM

OK. Let me clarify some things. This is regarding her. I'M a man myself so I'm not trying to stick anything to the man. My overall objective is to find out how long will it take for her to get caught. I also wanted to know what would be her consequences. Another thing I wanted to know is will the county of LA will cross reference the IRS. She is receiving public assistance such as food stamps and cash aid. In California, the counties provide the assistance ex: Kern, La, etc. Sorry for any confusion and thanks for the responses already. If there is anything that you need to list that will help me, please do. I appreciate everything.

smoothy · Feb 6, 2011, 02:56 PM

Through the intricate accounting processes of dispursement of money.. there WILL be records of exactly who gets exactly what and how much. If there wasn't far more public officials would be stuffing their pockets than are already. After all if I was given a trunk full of money to hand out... without accounting for it... Id just say I did and keep it for myself. That's just one reason WHY there is so much paperwork invlolved. And paperwork is a paper trail.

Nothing happens "off the books" so there IS a paper trail... and under the law disbursements to individuals as well as business are required to be reported to state and in most cases the Federal government as well.
The consequences of failing to report it and file it is called tax evasion. At both the state and federal levels.

joypulv · Feb 9, 2011, 05:24 PM

The man in this case means the government.
It can mean the law, or big corporations, or anyone with power.

Anyone can file taxes. It is meaningless to say 'can't file taxes.'
Again, whether she will get caught and WHEN is just an educated guess, not a certainty.
Some agencies are still programming the computers that cross reference, so it's ongoing. Obviously they all are sick of the people getting welfare, food stamps, unemployment, workmens comp, disability, FEMA, Medicaid, and who knows what else all at once. Oh, and filing for a tax refund...

I'll say it one last time: her best hope is that they will send back her form as incomplete, she can tear it up, and stop that foolishness.
Her worst hell is that her employer will be run out of business and she will have all her benefits taken away for now, forever, and with a bill for the past.

rlb3me · Jan 12, 2012, 01:29 PM

yes you can get federal and state taxes without income.If you have children the government knows you had to have made some moneys.you and your tax person can make a list of people that paied you.you cam not exceed 12,000$ on that document.w/children=1000 per.its a loop hole and runs parallel even if you are collecting cash aid food stamps etc.