19154Re: [tips_and_tricks] How do I file taxes after getting money under the table?
- Jan 29, 2013
Re: How do I file taxes after getting money under the table?
Sidenote: : Perhaps you should investigate why you probably don't owe a thing or why you probably don't have to file....I'll assume you're like everyone-else in the USA who abide purely by custom [aka sheepeople over cliff], intimidation and government "opinion" rather than relying upon what the written law tells government to do. And of course the IRS or court might have a different....OPINION....but in the end, its opinion eh?
Back to your story: The IRS finds-out about money via "information". Yes, just like the old Soviet reporting by the KGB on "information" on suspects. Government in the USA relies upon innocent, naive proles to report upon other proles---and thus do all of government's accusations and thus said government doesn't have to pay any penalty for wrongful accusation. [Its the old tattletale: "I didn't say you owed....she did."] So some idiot files an "information return" on you--say a 1099 or W2...and does so under penalty of perjury....thus basically saying [really implying] HE says you have liability for the tax to government. This let's government off the hook--now all they're doing is enforcing upon the accusation. [Perhaps this sounds familiar to cops saying "I can't do anything unless you swear out a complaint. Do you want to swear out a complaint and invoke my powers?"]
The OTHER way the IRS finds out about money is....someone rats on you. They investigate these but unless they arise to a great amount to warrant a CI investigation--which means fraud suspected--I doubt they really get attention.
Be aware....people in the country assume "work under the table" means simply "I don't have witholding." [aka not W2/W4] Some employers hire people because the applicant says "I need to work under the table." The employer doesn't want to get in trouble, so he simply reports as 1099 Misc Income. A TRUE under the table has NO REPORTING. These are very hard for the IRS to track down anyone WITHOUT an information return as frankly--unless the amount is sky high--there is other revenue easier to acquire.. So the bottom line is "Did someone send you a 1099 or W2 ?"
If someone ALREADY crapped-on-you with a W2 or 1099 [you would know as they mail it to you], then the IRS already has info as to who it is and they match like 99%.
Going back to the ganster era....All that said, the IRS has a LONG STANDING policy of NOT CARING where $$ come from. Look...there are a TON of illegal immigrants who use OTHER people's SSN/TIN's. Nary ONE has been investigated by the IRS because frankly it's $$ coming IN. The IRS even thumbs its nose at DHS, Immigration, etc, Yep!
So unless you have a 1099/W2.....Is you want to report it, slap it down as Misc. income. I wouldn't give them ANY more info. Not their business.
TRUST ME...the IRS services customers and they're happy to get all the customers they can. If you're a customer of theirs, they welcome you with enfolding arms into that of a one-word taxpayer.
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