My Fiance Hasn't Filed Taxes For 3 yrs. Can They Take His Federal Tax Return?

Question

My fiance has done a lot of tile jobs, where he's been paid cash so he hasn't filed taxes for 3 yrs. He has had jobs where he actually owes money too but he never filed those years. This year he filed and his return is $4,000 but I'm wondering if they can take that money? He got an email that said his return was accepted but a few days later he got a notice that said he owes money to the state so they took his entire state refund. I'm just hoping they can't take his federal return as well.

Answer 1

Honey, they're the almighty IRS, they can do pretty much anything they like.



As to your fiance, if they KNOW that he owes them that money, then yes, they can, and will, take it. If they don't know about it, then they won't.



Good luck!... :-D

Answer 2

Were these tile jobs "under the table"? If so, and the people paying him never reported it to the IRS, on paper at least, he would not have needed to file taxes for those 3 years IF he had no other income. (On the books) So, he may have owed the state from before, and not the IRS. I will say this though, even being self employed, which he is, he SHOULD be paying taxes. Just like every other American. I can very well be wrong in what I have stated, and more than likely am, but like most people I like to throw my 2 cents in.

Answer 3

the problem is when he fails to file, IRS can create a tax return for him and he definitely will not like what the come up with, it very likely will result in taxes due, plus penalties and interest

he needs to file his back returns and get this cleared up, so he owes money, that is essentially paying into his own account(SS and Medicare)

if IRS doesn't know what he owes in old taxes, they have no way to offset his current taxes

Answer 4

Yes this could very well happen if he owed taxes for some past year and also failed to file his 1040 income tax returns for the past year wen he should have filed and paid any income tax that would have been due each year in the past.

Key words are good detailed records of all ordinary and necessary expenses of the business operation and a daily detailed mileage record or log of all business miles and all personal mileage that the vehicle is actually used for each purpose to help you determine your actual percentage of business use and in the event that you need the written records at some future time you would have them available to you.

All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.

Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business

In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.

You would have to be sure that you handle your business deductions correctly for your business operation.

For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples.

Publication 463 Travel, Entertainment, Gift, and Car Expenses

Use the search box at the www.irs.gov website for Small Business and Self-Employed Tax Center

Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.

2 of the seven tax tips for starting a business enclosed below.

#4 Good records will help you ensure successful operation of your new business. You may choose any record keeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.

#7 Visit the Business section of the IRS gov website for resources to assist entrepreneurs with starting and operating a new business. Go to the IRS gov website and use the search box for the below referenced material

*Starting A Business

*Operating A Business

*Closing A Business

*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)



http://www.irs.gov/



http://access.wa.gov/business/taxes.aspx



Hope that you find the above enclosed information useful for your situation and good luck to you.

ve due for each year.

Answer 5

Actually, they "could" file criminal charges, although the IRS rarely does. But yeah, I'm sure they will take it when they realize it's owed to them.