A little background:
DH worked for a friend's company a few years ago, in 2007. It was a crappy situation. His paycheck bounced all the time, they ran out of work a lot, and it just seemed a bit shady, so he only worked there 4 months. While working there, he did not receive regular payroll checks, but rather company checks that were handwritten or a check from the owner's personal account. They calculated his hours and took taxes out then gave him a check for the net.
Of course we didn't get a W2 from them the following January - big surprise there.
So he called his buddy who told him he wouldn't be getting one and to just claim it on a 1099- but it wasn't a contractor situation and they TOOK taxes out of his pay. We called the IRS who told us to fill out some other form for when you don't recieve a W2, and to estimate the amounts made and taxes taken out. Since he didn't have pay stubs, we had to calculate it the best we could from bank deposits.
So fast forward to last week when we get a letter from the IRS wanting their money for the $1200 or so that we estimated was taken out of his pay checks.
Apparently, when DH filed electronically, the form we filled out to estimate his pay and taxes didn't get sent with our claim. He hasn't been to talk to the IRS yet, but did talk to his "buddy" who talked to the lady who owned the company and she said she would just give us the money to pay the taxes...
Which is fine and wonderful as long as it doesn't come back down on us in any way. Because if we just pony up the money, is it going to look like we were lying in the first place? Will they then want to audit us? I think DH should take the money they give him to the IRS with our paperwork, including the form that didn't get sent to make sure that we don't come out as the shady ones, when it was this stupid lady and her company who were the shady ones. DH doesn't want to to this because he doesn't want his buddy to get in trouble (we're 95% sure he was doing a little tax evading of his own, since he acted like it wasn't a big deal at all when we originally filed our taxes).
WWYD??
DH worked for a friend's company a few years ago, in 2007. It was a crappy situation. His paycheck bounced all the time, they ran out of work a lot, and it just seemed a bit shady, so he only worked there 4 months. While working there, he did not receive regular payroll checks, but rather company checks that were handwritten or a check from the owner's personal account. They calculated his hours and took taxes out then gave him a check for the net.
Of course we didn't get a W2 from them the following January - big surprise there.
So he called his buddy who told him he wouldn't be getting one and to just claim it on a 1099- but it wasn't a contractor situation and they TOOK taxes out of his pay. We called the IRS who told us to fill out some other form for when you don't recieve a W2, and to estimate the amounts made and taxes taken out. Since he didn't have pay stubs, we had to calculate it the best we could from bank deposits.So fast forward to last week when we get a letter from the IRS wanting their money for the $1200 or so that we estimated was taken out of his pay checks.
Apparently, when DH filed electronically, the form we filled out to estimate his pay and taxes didn't get sent with our claim. He hasn't been to talk to the IRS yet, but did talk to his "buddy" who talked to the lady who owned the company and she said she would just give us the money to pay the taxes...Which is fine and wonderful as long as it doesn't come back down on us in any way. Because if we just pony up the money, is it going to look like we were lying in the first place? Will they then want to audit us? I think DH should take the money they give him to the IRS with our paperwork, including the form that didn't get sent to make sure that we don't come out as the shady ones, when it was this stupid lady and her company who were the shady ones. DH doesn't want to to this because he doesn't want his buddy to get in trouble (we're 95% sure he was doing a little tax evading of his own, since he acted like it wasn't a big deal at all when we originally filed our taxes).
WWYD??
