Does anyone know about taxes in the US?

[Beamin]

This forum as the smartest people I know of so I'll ask since I can't find any good info on this situation. I haven't filed taxes in a few years because of no income on paper but this year I have a 1099 it's not enough to pay taxes on but that's not why I want to file. The last year I worked I know I made enough to get a tax return but didn't file because of a lot of reasons  . I don't have any records from those jobs though but I know the IRS does and I would have received a refund. So how do I get my refund when/if I file this year? The government never forget debt and I know whether you want a refund or not they will give you one it you earned it.

[chriswebb]

This forum as the smartest people I know of so I'll ask since I can't find any good info on this situation. I haven't filed taxes in a few years because of no income on paper but this year I have a 1099 it's not enough to pay taxes on but that's not why I want to file. The last year I worked I know I made enough to get a tax return but didn't file because of a lot of reasons  . I don't have any records from those jobs though but I know the IRS does and I would have received a refund. So how do I get my refund when/if I file this year? The government never forget debt and I know whether you want a refund or not they will give you one it you earned it.

Your situation sounds pretty complicated, so you probably won't get a complete answer. However a cursory glance on the googs turned up some interesting information: https://www.forbes.com/2009/10/08/IRS-tax-audits-statute-limitations-personal-finance-wood.html#2d65bf0c3d2f  An older article, so with the silly political landscape couldve changed, but it sounds like you only had 2 years.

Amending Tax Returns

Taxpayers must abide by a time limit too: If you want to amend a tax return, you must do it within three years of the original filing date. You might think that amending a return restarts the three-year statute, but it doesn't. However, where your amended return shows an increase in tax, and you submit the amended return within 60 days before the three-year statute runs, the IRS has 60 days after it receives the amended return to make an assessment. This narrow window can present planning opportunities. An amended return that does not report a net increase in tax does not trigger an extension of the statute.

Claiming a Refund

The adage about possession being 9/10ths of the law applies to taxes too--getting money back from the IRS is hard. If you pay estimated taxes or have tax withholding on your paycheck but fail to file a return, you generally have only two years (not three) to try to get it back. Suppose you make tax payments (by withholding or estimated tax payments) but haven't filed tax returns (shame on you!) for three or four years? When you file those long-past-due returns, overpayments in one year may not offset underpayments in another.

[Nusa]

What tax year are you talking about and how big a refund would you have gotten (ballpark estimate is fine)?
If it's more than 3 years back, you're probably out of luck. If it isn't that far back, you simply file a return for THAT tax year (using that tax year's forms from irs.gov). [repeat for state taxes if they matter to you, although time limits may vary by state]
However, if the refund number is small, it may simply not be worth the time and effort involved, considering your lack of records.

[Addicted2AnalogTek]

So you're a professional contractor of some sort who provided services for someone over $600 and they've claimed it on their taxes, so you've received a 1099, correct?

What you need to do is get ahold of your previous employers that withheld taxes from your paychecks and and request W2's from them, but you should have had them mailed to you already without having to put in any requests. Once you've obtained that info, just file your taxes for each year like you would regularly.
Also, every employer is required to file employee income with the SSA, so you could retrieve that info from them as well.

But...... if you've done work for other people as a professional, received payment from them, and not paid taxes on that income.... well, you're in for a treat.

Legally, what you would need to do in that case is go back through your records, bank accts, etc and find all the 'projects' you had that netted you over $600 in profits, file those on your taxes, and pay out the wazoo all of the taxes you have failed to pay..  but you've only received one 1099 in that span of time, so do what you will at your own discretion..... 

[Bassman59]

This forum as the smartest people I know of so I'll ask since I can't find any good info on this situation. I haven't filed taxes in a few years because of no income on paper but this year I have a 1099 it's not enough to pay taxes on but that's not why I want to file. The last year I worked I know I made enough to get a tax return but didn't file because of a lot of reasons  . I don't have any records from those jobs though but I know the IRS does and I would have received a refund. So how do I get my refund when/if I file this year? The government never forget debt and I know whether you want a refund or not they will give you one it you earned it.

You’re supposed to file a return every year, regardless of whether you have any income.

That last year that you worked, you “know you made enough to get a tax return.” I assume you mean refund. But is that true? For that year, were you a W2 employee or a 1099 contractor?

 If you were an employee, are you sure that your withholding exceeded what you actually owed? The only true way to know is to run the numbers. The IRS knows only the income reported by your employers and the amount of tax that was withheld. They don’t know other details, like marital status, changes in number of dependents, or any special circumstances which may change what you owe.

If you were a 1099 contractor, the company that hired you reports what they paid to you; it’s up to you to do the return (Schedule C plus 1040) to determine what you actually owe. Your income might have been low enough to avoid Federal income tax, but you will still be responsible for payroll taxes (FICA and Medicare) and you have to pay the full amount for those (~12% for FICA, ~4% for Medicare; as a W2 employee you pay half and the employer pays the other half).

In either case, your state might want to hear from you, too.

None of that affects your taxes for FY2017. You will have to, as noted by Nusa, will have to use the forms for that past year to file returns for it. There might be penalties. The penalties might exceed whatever refund you think you’ll get.

For 2017, you received a 1099. You have to file (again, regardless of whether you received any form from any employer!), and you’ll need to do a Schedule C (self-employment) for your business. If you’ve bought anything to support your business, generally it can be written off, as can travel and other things. That can reasonably reduce your business net income to zero, and that shows up as your income on the 1040. You won’t get a refund for 2017 because you haven’t overpaid your taxes (you haven’t paid any!).

[Nusa]

You’re supposed to file a return every year, regardless of whether you have any income.

That's an overstatement. Many people who have a low income are NOT required to file a return.

The exact threshold for that is based on filing status and circumstances. However, even those people have to file if they want to recover any monies withheld for tax purposes. Go here if you want to run your numbers: https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return

[tooki]

Also, a little tidbit told to me by a friend who's a tax accountant: the statute of limitations (for the IRS to audit you) is 3 years on a filed return, but 10 years if no return was filed. So it can be a good idea to file even if you are under the filing threshold.

[Beamin]

I think it was 2015 that I worked part time and made maybe 1000$ net.

10 years for owing money but 2 years for getting it back? Also does anyone know if coinbase sends you a 1099? I have a few grand cash with them but just under 10000 of actual USD money changed hands going back and fourth into crypto then back to money then crypto. None went into my bank account just out.

[Nusa]

I think it was 2015 that I worked part time and made maybe 1000$ net.

10 years for owing money but 2 years for getting it back? Also does anyone know if coinbase sends you a 1099? I have a few grand cash with them but just under 10000 of actual USD money changed hands going back and fourth into crypto then back to money then crypto. None went into my bank account just out.

So it may not be too late to file for 2015, but you better hustle if you're going to do so! Doesn't sound a large refund, however.

Google is your friend: "coinbase 1099" gets you that answer quickly. The answer is probably not for the numbers you quoted. But a lack of a form doesn't mean the IRS didn't get the information from coinbase.

But that doesn't mean you can or should hide income, regardless of how you receive it. The law is clear on the matter, whether it's followed or not.

[Beamin]

I think it was 2015 that I worked part time and made maybe 1000$ net.

10 years for owing money but 2 years for getting it back? Also does anyone know if coinbase sends you a 1099? I have a few grand cash with them but just under 10000 of actual USD money changed hands going back and fourth into crypto then back to money then crypto. None went into my bank account just out.

So it may not be too late to file for 2015, but you better hustle if you're going to do so! Doesn't sound a large refund, however.

Google is your friend: "coinbase 1099" gets you that answer quickly. The answer is probably not for the numbers you quoted. But a lack of a form doesn't mean the IRS didn't get the information from coinbase.

But that doesn't mean you can or should hide income, regardless of how you receive it. The law is clear on the matter, whether it's followed or not.

Unfortunately in the country I live in you have to choose between having money, even a very small amount, and health insurance. Medical bankruptcy is a US thing and really messed up that an accident/genetics will destroy your credit, which is a function of whether or not you are worthy of being lent money to, but instead an indicator if you got sick.

[Nusa]

I think it was 2015 that I worked part time and made maybe 1000$ net.

10 years for owing money but 2 years for getting it back? Also does anyone know if coinbase sends you a 1099? I have a few grand cash with them but just under 10000 of actual USD money changed hands going back and fourth into crypto then back to money then crypto. None went into my bank account just out.

So it may not be too late to file for 2015, but you better hustle if you're going to do so! Doesn't sound a large refund, however.

Google is your friend: "coinbase 1099" gets you that answer quickly. The answer is probably not for the numbers you quoted. But a lack of a form doesn't mean the IRS didn't get the information from coinbase.

But that doesn't mean you can or should hide income, regardless of how you receive it. The law is clear on the matter, whether it's followed or not.

Unfortunately in the country I live in you have to choose between having money, even a very small amount, and health insurance. Medical bankruptcy is a US thing and really messed up that an accident/genetics will destroy your credit, which is a function of whether or not you are worthy of being lent money to, but instead an indicator if you got sick.

I live in the same country, and I realize the current health care reality depends on where you live in, particularly if you're in a state that rejected the Medicaid expansion part of Obamacare. And the asset rules vary tremendously between states. California, for instance, no longer cares how much you have in the bank in most cases...the main test is actual income for the year.

But that's completely beside the point I was making. My point was it's not terribly smart to hide investment income that is almost certainly being reported to the IRS directly, regardless of whether a 1099 was required to be issued to you. It may come back to bite you.

And none of the above has anything to do with your 2015 return. You either try to fix it or you don't.

[sokoloff]

Depending on the amounts in question and your disposition towards DIY or having a professional help you, you might want to do a quick consult with a tax professional.

If you're going to go DIY:
I recommend your first step to be to request a "Wage and Income Transcript" and "Record of Account Transcript" from the IRS.
The reason for the second is because even if you didn't file a return, the IRS may have compiled a proxy return on your behalf.

https://www.irs.gov/individuals/get-transcript

[jmelson]

I think it was 2015 that I worked part time and made maybe 1000$ net.

10 years for owing money but 2 years for getting it back? Also does anyone know if coinbase sends you a 1099? I have a few grand cash with them but just under 10000 of actual USD money changed hands going back and fourth into crypto then back to money then crypto. None went into my bank account just out.

If you earned $1000 in ONE QUARTER, you were required to file.  If it was split over at least 2 quarters, I think you were NOT required to file.  IIRC, it takes $600 in each quarter to be required to file.

If this is all cryptocurrency, and maybe outside the US, then maybe the IRS does NOT have paperwork on it.

Jon

[endevor100]

You can get a return up to 3 years later. You can put whatever number you like in for income, but if your memory is too far off from the government's records then they might start asking questions and you'll be in trouble. Whoever paid you is probably required to keep their records for at least 5 years. That would be a good place to start.

[sokoloff]

You can get a return up to 3 years later. You can put whatever number you like in for income, but if your memory is too far off from the government's records then they might start asking questions and you'll be in trouble. Whoever paid you is probably required to keep their records for at least 5 years. That would be a good place to start.

The "wage and income" transcript from the IRS will give you the records that the IRS has for your taxpayer ID number.

No need to go fishing, just ask them...

[Beamin]

I think it was 2015 that I worked part time and made maybe 1000$ net.

10 years for owing money but 2 years for getting it back? Also does anyone know if coinbase sends you a 1099? I have a few grand cash with them but just under 10000 of actual USD money changed hands going back and fourth into crypto then back to money then crypto. None went into my bank account just out.

If you earned $1000 in ONE QUARTER, you were required to file.  If it was split over at least 2 quarters, I think you were NOT required to file.  IIRC, it takes $600 in each quarter to be required to file.

If this is all cryptocurrency, and maybe outside the US, then maybe the IRS does NOT have paperwork on it.

Jon

Coinbase is quite convoluted. If you pay with a credit or debit card the payment goes to some island Jamaca I think. My greedy bank tried to charge me a fee for using my debit card internationally. Also unless they are just going by net money in or out I bounce the funds back to money back to crypto sometimes daily. It also leaves coin base to go to my hardware wallet and I don't know how they would know what you earned by trading and what came from other sources such as bitcoins I bought in 2012 that I had sitting around on a computer. Technically that was just savings and I shouldn't be taxed on my savings. I have always done things on the up and up but when your health insurance is on the line and it's literally life or death you do what you have to to survive. It's absolutely disgusting that profits dictate who lives and who dies. Rules don't matter when you are dead. I met this one social worker that just could not understand why people would break the rules to get food stamps when they literally had no money through no fault of their own. By looking at her shes never gone hungry for any length of time. RANT=END;

[jmelson]

If you convert money from one form/place to another, but it is all YOURS, you don't owe tax on that.  So, moving money from bank to credit card to bitcoin to different bank to PayPal to credit card is all non-taxable, but you really SHOULD have records to prove what you did when.  The IRS likely has PARTIAL records of some of these transactions, and may THINK it looks like income.  You need some records to substantiate that these were transfers between different investments/deposits you controlled, and didn't come from somebody else.

Also, popping up and filing old tax returns does raise the interest at the IRS that you MIGHT be up to something.  Of course, if you only made $1K that year, it really should not be worth their auditing you, but if they think you might be money laundering or something, they could ask for a LOT of documentation.

Jon

[Addicted2AnalogTek]

I had once been told by an ex-IRS agent that the IRS won't even consider auditing you unless they believe you've made over $80K in a year. It's just not worth their time and resources.  I believe it, but don't take my word for it.

[tooki]

I had once been told by an ex-IRS agent that the IRS won't even consider auditing you unless they believe you've made over $80K in a year. It's just not worth their time and resources.  I believe it, but don't take my word for it.

I've heard similar rules, like that they won't consider auditing unless they believe there are thousands and thousands of tax revenue going missing. It's just not worth the effort for small amounts.

(A tax accountant recently told me that the vast majority of what people commonly call "audits" are actually just requests for information/clarification, most of which are computer generated based on discrepancies between the data the IRS has collected from various sources, and what you declared on the tax filing. But true audits are for big fish only.)

[sokoloff]

I believe that TCMP audits are possible for anyone with positive AGI, but those are relatively rare.

That’s the “taxpayer compliance measurement program” designed to estimate the level of “voluntary” compliance.