Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 07-06-2016, 06:07 PM
Junior Member
 
Join Date: Jul 2016
Posts: 1
Filing Amended Returns for Periods Working Under Table

Hi all,

My situation is thus. There are periods of my past employment where I worked under the table (for family construction business and also while doing part-time child care). I didn't pay income taxes or file returns for those years. Currently I'm applying for a government job that takes issue with such behavior, so I intend to file returns for those past years as well as pay the owed income tax.

What I'm hoping to get some advice on is which forms I would need to submit to file for these past years. Since I don't have W2 forms from my employers for those periods, would I need to file a 4852 W2 Substitute form? If I do file those forms, would the families that I provided childcare for receive a penalty?

Any and all advice is much appreciated. Let me know if I can clarify anything. Thanks!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 07-06-2016, 07:14 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,227
My situation is thus. There are periods of my past employment where I worked under the table (for family construction business and also while doing part-time child care). I didn't pay income taxes or file returns for those years. Currently I'm applying for a government job that takes issue with such behavior, so I intend to file returns for those past years as well as pay the owed income tax. =====Then, you need to pay both penalties and interest on your past due tax returns. Not only you but even your employer also need to pay all past due social sec taxes on your w2 income and also need to pay all past due penalties/interest. skirting employment taxes can be even more serious than skirting income taxes. you'll need to hire an accountant , an EA a CPA doing taxes in your local area to help you set up an appropriate tax arrangement


What I'm hoping to get some advice on is which forms I would need to submit to file for these past years. =====

.Correct; you need to file past due tax returns . Cash still has to be reported as income, and you still have to keep records.
Receiving cash doesn?t mean you are not an employees or you are not automatically independent contractor either.

Since I don't have W2 forms from my employers for those periods, would I need to file a 4852 W2 Substitute form? =====>>no;
? Form 4852 serves as a substitute for Forms W-2 or 1099R NOT for cash payements; your cash income is not reported on a W-2, it needs to be entered separately on tax forms. You need to keep careful records of your cash income. In the event that the IRS audits your cash income, it will look at bank account deposits, so make sure your calculated cash income is close to those deposits. You also need to total all of your cash income received for the years. You do not need to include any work which you have done in the fiscal year but for which you have not received payment. You need to complete your Federal 1040 form. Line 21 on the 1040 tax form is for "other income." List the source of your income on the dotted line and the amount in the box. Also fill out your state /local income returns. Though the exact location of the entry will vary from state to state, you will need to also enter in your cash income information .The you should file your past due taxes as you normally would


If I do file those forms, would the families that I provided childcare for receive a penalty?
=====>I guess it depends; If they have a nanny or frequent babysitter for their children, they need to understand the nanny tax. The IRS requires anyone with household help, such as a babysitter or housekeeper, to pay Social Security and Medicare taxes if annual pay crosses a set threshold, which was $1,600 for 2008 and $1,700 for 2009, 2010 and 2011 and $1,900 for 2014. If not they need to pay penalties/interest on the payments to you on their returns.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Prior Year State Returns Amended... NCvols Income 1 01-31-2014 02:49 PM
Advice on amended tax returns ddss Income 20 09-30-2013 05:39 PM
Does IRS audit original returns that were amended? pcg2011 Limited Liability Company 4 09-18-2013 03:49 PM
Ten Facts about Amended Returns Samatg For 2009 0 04-13-2010 11:46 PM
Top Ten Facts about Amended Returns Samatg General 0 04-14-2009 08:30 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning