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Old 03-13-2014, 05:23 PM
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Join Date: Mar 2014
Posts: 1
Advice Needed...

I have a long and annoying story regarding the advice I am seeking.

I worked for the 2013 filing season, as a personal assistant for a hedge fund manager who was living in Los Angeles (but the fund was based in Chicago)

When I started working for him he had me sign an NDA, but never presented any tax documents. Which obviously I viewed as weird but I was in need of money and overlooked it. I was paid weekly via his personal checks.

Cut to a year later, I quit working for him after I found out he was breaking the law in a few different ways, and I felt uncomfortable being and employee of his.

Now here is my real question, I never received any tax information and I know he did not file me in any regards with the IRS (he never filed california tax's he always would claim Illinois)
What should I do? Is this something that the IRS would even catch? How would I even start the process?

ps. dont know if it will help but my income was $50,500 for '13

Thank you for all the help!



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Old 03-13-2014, 06:00 PM
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Join Date: Mar 2014
Location: Huntington Beach, CA
Posts: 8
Declare Your Income & Deduct Your Expenses

Regardless if your former employer provided you with a 1099, or not, you are required to file a tax return and claim the $50k you received in compensation for your services.

I have heard some "questionable" tax preparers who will advise; the IRS only looks back four (4) years. Implying that if the IRS does not catch you, you are free and clear. First this is not the case as the IRS may look back more than four years if they consider fraud. I would argue that failure to file a return when one knows that they should can be argued as fraud.

The IRS, however, is not your only concern. The State of California has no Statute of Limitations. If they catch you they will share that information with the IRS.

I am confident in predicting that your former employer WILL DEDUCT what he paid you from his tax return. If he gets audited I believe he will serve you up to the IRS, the State of Illinois, or any other tax agency.

My advise to you is to file your return(s), claim your income, and deduct ALL of your lawful expenses that were required to generate that $50k.

Regards,

Ron Fenney
Tax Accountant
Huntington Beach, CA



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Old 03-13-2014, 09:47 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by yaypster View Post
I have a long and annoying story regarding the advice I am seeking.

I worked for the 2013 filing season, as a personal assistant for a hedge fund manager who was living in Los Angeles (but the fund was based in Chicago)

When I started working for him he had me sign an NDA, but never presented any tax documents. Which obviously I viewed as weird but I was in need of money and overlooked it. I was paid weekly via his personal checks.

Cut to a year later, I quit working for him after I found out he was breaking the law in a few different ways, and I felt uncomfortable being and employee of his.

Now here is my real question, I never received any tax information and I know he did not file me in any regards with the IRS (he never filed california tax's he always would claim Illinois)
What should I do? Is this something that the IRS would even catch? How would I even start the process?

ps. dont know if it will help but my income was $50,500 for '13

Thank you for all the help!
So you received neither W2 nor 1099 but received in cash. If you worked during the tax year2013 and received cash as payment for your work, the IRS requires that you report the payment on your income tax return. Regardless of whether you received a W-2,1099, it is your responsibility to report your income and pay taxes. Generally, an employer is required to supply an employee with a W-2 (or 1099)at the end of each tax year, but certain circumstances might affect your employment status.so, If you worked during the tax year and received cash as payment for your labor, the IRS requires that you report the payment on your income tax return. Many times even cash payments are reported to the IRS via a 1099 form that the person/employer who paid you the cash will file,you would receive these 1099 forms just as you would the W-2 forms for standard taxes....
If you receive no 1099 form then you have to file as self-employed and still report your income.....As a freelancer or employee, you may be asked to sign a NDA with certain clients or companies. The purpose of an NDA is to keep the company's information private—maybe it has trade secrets or a special sauce that it doesn't want you poaching.it is a legal document.please contact irs for more accuarate info in detail



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Old 03-15-2014, 08:25 AM
StinkyTaxLaw
 
Posts: n/a
Quote:
Originally Posted by yaypster View Post
I have a long and annoying story regarding the advice I am seeking.

I worked for the 2013 filing season, as a personal assistant for a hedge fund manager who was living in Los Angeles (but the fund was based in Chicago)

When I started working for him he had me sign an NDA, but never presented any tax documents. Which obviously I viewed as weird but I was in need of money and overlooked it. I was paid weekly via his personal checks.

Cut to a year later, I quit working for him after I found out he was breaking the law in a few different ways, and I felt uncomfortable being and employee of his.

Now here is my real question, I never received any tax information and I know he did not file me in any regards with the IRS (he never filed california tax's he always would claim Illinois)
What should I do? Is this something that the IRS would even catch? How would I even start the process?

ps. dont know if it will help but my income was $50,500 for '13

Thank you for all the help!
The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects. Fill out IRS Form 211 if you have information and seek reward or Form 3949-A if you have information and only want to report the violation.



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