In 2007 I worked for my dad helping him open up a restaurant. I was never paid, but we had a verbal understanding that I would get part ownership of the restaurant. Long story short, like always, my dad burned me. I left with nothing. Now, i get a letter from the IRS saying i owe over $4,000 in back taxes from 2007 based on the income I earned from his company in this year. This is not true and I have no idea where this figure came from. My best guess is while he was out of the country, the company wrote checks to me in order for me to make purchases on behalf of the company. But I never received personal income.
i dont have any records or receipts from anything during this time. i was also never given any earnings forms. he could claim he didnt know my location (true), but he certainly could have sent it to my mother if this were the case. do i have any recourse in this matter? my dad screwed me over once, i hate to let him do this again. i am certainly in no position to pay this money. also, if i am forced to pay and cant, what happens? dock my pay? jail? i am really frustrated so any help would be appreciated. it was in texas, btw. thanks
1 Answer from Attorneys
It sounds as of your Dad is a crook - lying to the IRS about having paid you, perhaps to gain some kind of tax advantage.
And of course you don't have any receipts or records; if you weren't paid, there wouldn't be any such records.
Write back to the folks at the IRS and tell them the whole story.
Related Questions & Answers
Are "sales and use tax" and "franchise tax" two separate... Asked 4/27/10, 8:53 am in United States Texas Tax and Taxation Law
Is there anyway to avoid double taxation on a C-corporation? Asked 3/30/10, 3:34 pm in United States Texas Tax and Taxation Law