My employer did not pay my Taxes to the IRS

[VanessaTony 3,567]

if he's paying her by personal check and she didn't fill out a W4 then i'm guessing she'll have no W2. she will have to file and just declare her earnings with the copies of the checks as proof if they ask i guess?

and there's a good chance he isn't paying into social security as well sara.

AKA this is a big pile of do-do and the OP has a lot of work to do to:

1. Fix this

2. find a co-sponsor

3. Find another job (likely the place'll be shut down for tax evasion.. yes?)

[Kristy S 13]

also, what are the odds he'll give her a written statement if he's dodging social security and taxes?

[Anh map 2,098]

set aside about 15% of the total (guesstimate) and plan on filing tax return. you should receive a w-2 by mid-Feb 2011 for tax year 2010 and if you dont receive, call IRS.

even if you do not receive, still file and pay your taxes.

as for last year, you say you've worked for a year so that would only be approx a month. file a tax return for last year now ASAP.

since you've only worked a year you may not owe anything for 2009 (were you unemployed previous to nov 2009? or had another job? this will affect)

just for the record it sounds like he is paying you 'under the table which is illegal. as long as YOU are paying your taxes it's his behind but you may lose your job. just so you know.

he is avoiding paying taxes on you.

W2's must be issued by January 31st each year. However from what the OP has told us no W2 will be coming.

If these checks don't have any listing of hours and rate or salary that may be a bit of a problem. The reviewer and/or CO may not see them as "normal paychecks."

Your employer has some explaining to do to you and any other coworkers.

[sara2010 2]

My income is about $16000 per year not $18000. I also want to use my home as an asset.But right now I am concern about the tax issue.

Edited November 22, 2010 by sara2010

[VanessaTony 3,567]

My income is about $16000 per year not $18000. I also want to use my home as an asset.But right now I am concern about the tax issue.

Okay so the income alone isn't enough, but you still need to file taxes.. they need tax returns, and it isn't like you didn't need to file taxes 'cause $16,000 is enough to file taxes.

[Anh map 2,098]

My income is about $16000 per year not $18000. I also want to use my home as an asset.But right now I am concern about the tax issue.

As far as the taxes are concerned: go and speak with an accountant or tax preparer. Be sure to bring a couple of check copies with you as well for them to see.

What, if anything, does your employer have to say about this situation? Are they doing this out of ignorance (doubtful) or just trying to avoid paying the Social Security, Federal and State Unemployment taxes.

Vanessa, no need to scare the OP regarding the business being shut down. That would not happen for a while (if at all) given what the OP has told us.

If you've got a good bit of equity in your home you may be able to use that to make up the income shortfall.

[Inky 1,110]

You don't have to answer but im currious as to why as an american citizen you would take a strange job like that with no forms filled out and strange payments being made to you in check form? Something like that would of sent alarm bells going off like crazy in my mind at the interview and if not then the first day I got payed with a personal business check.

[Kristy S 13]

You don't have to answer but im currious as to why as an american citizen you would take a strange job like that with no forms filled out and strange payments being made to you in check form? Something like that would of sent alarm bells going off like crazy in my mind at the interview and if not then the first day I got payed with a personal business check.

that was the first thing going through my mind as well...i can see it from like a 16 year old that doesn't know any better, but then their parents should step in and ask wth is going on. but from any adult that has bills to pay and lives on the up and up, i don't get it.

[sara2010 2]

that was the first thing going through my mind as well...i can see it from like a 16 year old that doesn't know any better, but then their parents should step in and ask wth is going on. but from any adult that has bills to pay and lives on the up and up, i don't get it.

I am college student. I go to school fulltime and now I have to be sponser for my fiance because I have no one to be his sponser.I had to find an emplopyer which he/she can work with my school hours. This employer is one of dad's friend.He own a coffee shop and he told me to work for him. But I never realized this would happen to me.

[Kristy S 13]

well, first of all you need to talk to him and see if you are even working for him legally.

if not then i doubt he will help you with a statement, and you might be in trouble from the irs.

if he is then he will have records of the tax/social security/unemployment that he is deducting from your paychecks, and you should get copies of that.

you will need to round up copies of every single one of your checks and take them to a tax person so they can advise you how bad it really is and how much you are going to owe, and to get your taxes filed. at this point i advise you admit to and claim any tips you've made (at least a guesstimate) because there is a chance the irs might look into it and audit you, and if they find out you made tips and didn't claim then, then they could make a point of making your financial life a bit difficult (my mom used to work for the irs, i got to hear the horror stories).

and for future reference, it is not normal to receive pay in regular check form with no stubs showing deductions, it is not a good sign.

[Kristy S 13]

I am college student. I go to school fulltime and now I have to be sponser for my fiance because I have no one to be his sponser.I had to find an emplopyer which he/she can work with my school hours. This employer is one of dad's friend.He own a coffee shop and he told me to work for him. But I never realized this would happen to me.

and you are going to need a co-sponsor probably

[nab 74]

W2's must be issued by January 31st each year. However from what the OP has told us no W2 will be coming.

If these checks don't have any listing of hours and rate or salary that may be a bit of a problem. The reviewer and/or CO may not see them as "normal paychecks."

Your employer has some explaining to do to you and any other coworkers.

employeres have till feb 1st and you must wait till 16th before you can call irs on it

the OP stated the checks were BUSINESS personal checks. many small businesses have "DBA" checking accounts, the checks look like a personal check. IDK that's the case here but sounds like it to me.

As far as the taxes are concerned: go and speak with an accountant or tax preparer. Be sure to bring a couple of check copies with you as well for them to see.

What, if anything, does your employer have to say about this situation? Are they doing this out of ignorance (doubtful) or just trying to avoid paying the Social Security, Federal and State Unemployment taxes.

Vanessa, no need to scare the OP regarding the business being shut down. That would not happen for a while (if at all) given what the OP has told us.

If you've got a good bit of equity in your home you may be able to use that to make up the income shortfall.

i agree on taking the checks with you to the tax preparer, speaking to the employer (this is what you shoud be doing instead of us!), and absolutely agree on the business isnt going to be shut down overnight for something like this

and agree also on the assets, at 16k you're only short 2111x3

You don't have to answer but im currious as to why as an american citizen you would take a strange job like that with no forms filled out and strange payments being made to you in check form? Something like that would of sent alarm bells going off like crazy in my mind at the interview and if not then the first day I got payed with a personal business check.

that was the first thing going through my mind as well...i can see it from like a 16 year old that doesn't know any better, but then their parents should step in and ask wth is going on. but from any adult that has bills to pay and lives on the up and up, i don't get it.

seriously? you cant think of even one reason why someone would be hiding their income? i can come up with at least 3 without thinking hard (ducking Child support; receiving disability, worker's comp, or welfare fraud; getting grants for school because of "low income"). i doubt of OP (if they have half a brain) will be sharing on here why they're doing it because when people do illegal things it's not wise thing to tell about it.

Edited November 22, 2010 by nab

[Anh map 2,098]

Yes, if you get tips then definitely claim them. You will have to pay tax, but it will also raise your income number.

[Kristy S 13]

employeres have till feb 1st and you must wait till 16th before you can call irs on it

the OP stated the checks were BUSINESS personal checks. many small businesses have "DBA" checking accounts, the checks look like a personal check. IDK that's the case here but sounds like it to me.

i agree on taking the checks with you to the tax preparer, speaking to the employer (this is what you shoud be doing instead of us!), and absolutely agree on the business isnt going to be shut down overnight for something like this

and agree also on the assets, at 16k you're only short 2111x3

seriously? you cant think of even one reason why someone would be hiding their income? i can come up with at least 3 without thinking hard (ducking CS, receiving disability or worker's comp, welfare fraud). i doubt of OP (if they have half a brain) will be sharing on here why they're doing it because when people do illegal things it's not wise thing to tell about it.

true, but why would said person then file a petition with the US government and potentially screw themselves over royally?

[Kristy S 13]

Yes, if you get tips then definitely claim them. You will have to pay tax, but it will also raise your income number.

that is a good point, maybe she won't need a cosponsor, but i'll bet the consulate will question it if it's that close and she doesn't have a breakdown of hourly pay or anything? just her word that she made that much in tips? as a restaurant manager i know that all my servers are issued a log book from the irs that they are expected to update daily (or by shift worked) and the irs has the right to request this log for an audit at their discretion.