[Chryston]

Ok, to start:

I never paid my 2005 taxes. Why you ask? I don't have an excuse. It was the first year I had a W-2 AND a 1099-MISC form and the confusion with trying to work out deductions... I just gave up. Situation from 2005 is, I have no idea where my 1099 is from that year and the accountant from the company can't seem to send it to me... Say she finds it and gives it to me, then what? And also, why haven't I heard a peep out of the IRS for not filing during 2005? I guess this leads into the next question...

2006 has rolled around and now I've received another 1099-MISC, along with a W-2 from my new job. I have a 1099-MISC from 2006 that shows $12000 of nonemployee compensation, thus meaning I have to pay excessive amounts of taxes to the IRS. When I include my W-2 into this equation, it helps, bringing my bill down to $1500. I know that I can deduct many many expenses but I have absolutely no receipts. In mileage alone it could bring my bill down to something I could handle, plus meals I bought my clients, plus expenses from my home office, it could probably wipe out the debt. But I have no records. None. And that's the case with the 2005 1099 as well. I wasn't informed that my employer was going to file me this way and I never looked into what it really meant, so I never kept records. I worked that job May 2005-August 2006, and had expenses throughout that time but I can't prove any of it. I also can't afford not to use those expenses as deductions.

I'm very confused on what to do and how to do it. I don't have enough money to go to a CPA or even a H&R Block sort of place.

If I ignored 2005 again, and ignored the 2006 1099, I would get a refund that could pay for the car repairs I so desperately need.

Please... help!

[AtlantaTaxExpert]

The IRS is still working on 2004, but, trust me, they WILL get to you eventually.

Do NOT ignore the 1099s. It will only get you into DEEP DEBT with the IRS, and, unlike other debt collectors, the IRS has lien and garnishment powers to get the money to pay those taxes, not to mention possible jail terms if they think you are committing tax fraud (not likely, but possible).

I assume you used credit cards for most of the purchases. You can reproduce receipts with the credit card statements. Also, using other documents, you should be able to re-create a work and mileage log on a 2005 and 2006 daytimer. For many small charges, that is all you need.

If you want my professional help, contact me at [email protected].

[Chryston]

Unfortunately no-I don't have any credit cards. Yes I have a debit card, but for the most part, I use cash and always have. So when I mean I have no records, I really mean I have no records. Mileage wise, I have no way of calculating that. I worked as a loan officer and drove hours to peoples houses, daily, but there is no record of that. The only record would be by using the appt information I suppose, but I'm not an employee at the mortgage company anymore and I have no way of accessing those files. Plus, my vehicle was also used for personal use during that time. The only thing I can think of is totally fudging a mileage log for my time there, but that seems silly considering there is a question that asks if you have any records to back up your mileage statements, and even if you click 'no', it still works...

Can I just guestimate mileage and how much I spent on clients? How likely is it that I will get audited? I feel like there are so many bigger tax issues than me.

If I guestimate, both 2005 and 2006-what forms should I use? I tried 2006 online and figured it out, but I can't do 2005 online and I don't know what "forms" I was filling out while entering the numbers into the free online tax site.

[AtlantaTaxExpert]

If you did not leave the mortgage company on bad terms, you may be able to acess the info. Most companies understand that their employee do need it. You can also rely on memory, if need be.

If you got paid on 1099, you use Schedule C. If paid on W-2, you use Form 2106.

Good luck.