So back in 2022, I drove with doordash as a side hustle and made around 15k +/-. Back then I was also working a W-2 job. I filed my W-2 but didn't file my 1099. In 2023 I made around 7.5k doing doordash alongside my main W-2 job. Also didnt file the 1099 then either, just the W-2. I was young and dumb and nobody taught me about taxes (family situation/kicked out at 17). The IRS didnt say anything/send me any letters, and on the website there's nothing saying that I owe. Does the tax assessment statue of 3 years apply to my situation? Or 10 years? Does it count as "Didn't voluntarily file a required tax return" or did filing the W-2 count as the required tax return, with just the missing 1099 as a possible tax assessment? What do I do in this situation? I appreciate your guy's help. Just very paranoid lately.
Important Doordash 1099 question
byu/Feisty-Highway2319 intax
Posted by Feisty-Highway2319
2 Comments
You don’t file Form W-2. You also don’t file Form 1099-NEC. You file [Form 1040](https://www.irs.gov/pub/irs-pdf/f1040.pdf), which is your tax return. It sounds like you failed to file an *accurate* Form 1040 because you claimed your income was less than it actually was.
Yes, filing Form 1040 starts the clock on the statute of limitations for assessment. For tax year 2022, the IRS generally has until April 15, 2026 (three years from the due date) to make an assessment, or three years after you actually filed, whichever is later.
However:
* If you substantially understated your income, meaning that your actual income was at least 25% more than the income claimed on your filed return, the statute is increased to six years, and
* If the IRS determines that your omission was a result of a deliberate attempt to lie or evade tax, there is no statute of limitations and you can also be prosecuted for criminal offenses
In general, the IRS nearly always catches errors that involve failing to report information on forms where they received a copy, such as Form 1099. You should amend your prior returns to correctly include the income, and pay the resulting tax and penalty before you are assessed.
You are required to file your self employment income.
Penalties and interest are accumulating on the underpayment.
The IRS sometimes takes a while to get around to letting you know (keep in mind, the longer they wait, the more they collect in interest and penalties), and this is a case where it’s basically automated. Remember, any tax document you receive, the IRS also receives, including all 1099 documents. The thing is, the penalties and interest don’t start when they send a notice. They’re retroactive all the way back to the due date of the return, so.. April 15, 2023, for your 2022 return.
So the sooner you file your amendment and pay what you owe, the less you owe. It is NOT a good idea to wait for a notice.
Next step, amend your return, include your self employment income (which you offset somewhat with any qualifying expenses, such as mileage on your deliveries).