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Problems with 1099 because of not filing business and personal taxes

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    #1

    Problems with 1099 because of not filing business and personal taxes

    I have a friend who is about to have a heart attack because he borrowed money for his business (a lot of money) and is not able to pay the debt back.

    The problem is for decades he has not filed business and personal taxes and is afraid if he gets a 1099, his scheme will come unravel.

    How bad of a mess is he in?
    Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17
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    #2
    What makes him think he is going to get a 1099 for this debt?

    Out of all of the many charged off debts I have had, only one has filed a 1099-C for me.

    He is more likely to get sued than to get a 1099.



    But if he is really worried about it, wait until the IRS makes their move, and then go see a tax attorney. In this case, I wouldn't try to deal with the IRS by myself. It is too complicated. A tax attorney will know all the right things to do and say in this case, and will be well worth the money they will cost to defend him.
    The world's simplest C & D Letter:
    "I demand that you cease and desist from any communication with me."
    Notice that I never actually mention or acknowledge the debt in my letter.

    Comment

      #3
      don't mean to be funny here, b-u-t, with up to 16000 new IRS agents being hired.... I would worry too...

      I am sure he would not have to be too concerned about a thing if only he was an illegal alien......

      Comment

        #4
        That's right, illegals don't pay taxes!
        Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17

        Comment

          #5
          And the IRS doesn't enforce it against illegals because they usually don't have assets to take nor wages to garnish.

          They are judgment proof, and IRS proof.

          The IRS is like a giant collection agency. They don't want to spin their wheels going after someone with little or no money to pay them.

          They like to threaten people with assets.
          The world's simplest C & D Letter:
          "I demand that you cease and desist from any communication with me."
          Notice that I never actually mention or acknowledge the debt in my letter.

          Comment

            #6
            I think "head for the border" is probably the best advice here.
            filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

            Comment

              #7
              It's potentially a big problem. If he pops up on the IRS radar, and someone gets interested, he is probably looking at jail.

              Comment

                #8
                That is what he is afraid of.

                To make matters worse, he got a person who works at another business to run his credit cards thru that business and then transfer the money minus her cut to him. The employee made it look like the store bought some merchandise from him and the business was paying him back.

                The amount of money that was run thru that store was between 5 and 6 figures. He is afraid he is going to get caught for that also.
                Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17

                Comment

                  #9
                  I remember last year one of the BK lawyers on the board had a problem with a clients filing for BK but never filed a tax return. Maybe someone remembers his name and you can PM him to see if it was ever resolved.

                  Comment

                    #10
                    Wow! This makes my problems seem really small!

                    Comment

                      #11
                      just sitting on the 'jury', I would say: 'Fry baby, fry......'

                      Comment

                        #12
                        What I find hard to grasp is a bank or financial institution gave him a loan without requiring a copy of tax returns yearly. Our banker was always hot on our trail if we didn't have it to her by the first part of March (before the filing deadline). Maybe his loans weren't from a financial institution???

                        Comment

                          #13
                          Another consideration - if he had a lot of equipment for his business, the outstanding IRS debt may not be as bad as it appears due to depreciation. The sales tax is going to get him though. As recommended by others, a tax lawyer would be the first stop before seeing a bk lawyer. IMO.

                          Comment

                            #14
                            I got loans without tax returns. In his case and my case, they would normally just send us a loan offer and we would bite.

                            He is afraid of filing bankruptcy because of not filing but it appears he is bankrupted. He can't pay back his loans.
                            Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17

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