My previous employer restructured the way he paid his employers and how day to day expenses would be handled. Because of this my income shows I made about 65k but in reality my expenses were so high I made the equivalent of about 30k-35k and payroll was sporadic at best. I nearly lost my house from lack of payment at one point.

When I went to file this spring the IRS wants me to pay them about $6k based on my income. This employer lied to his employees to save himself money because he was in hot water for other things and now I'm in a bind.

How can I represent this situation to the IRS? As I understand it my deductions won't come close to covering this $6k hole.

Any help would be much appreciated.