So in my younger years, one of my Co workers let me in on the idea of drop shipping, I'd sell things off ebay, and order them off Amazon and ship it to the buyers via Amazon. Didn't make much, if any money. But according to paypal I took in over 20k in income and I didn't claim it on my taxes (I know, dumb but I was in my early 20s and didn't understand stuff.). I forgot about owing the tax and honestly every tax refund I've gotten each year went to paying it.
Fast forward to today, I get a letter in the mail saying I owe over 16k in taxes and they're going to levy my assets. I can't pay it off immediately or even within a year or 2.
What are my options? I've heard the 10 year rule, but not sure if that still pertains to me.
It's extremely depressing and worry some thinking that one morning I'll wake up to – 16k in my checking account. Someone please help me out! Thank you for any advice..
Posted by Shutthefrontup
7 Comments
you might need a tax attorney or accountant to negotiate with the irs. they could help set up a payment plan or offer in compromise. don’t ignore it, they can be relentless. good luck.
You took in 20k Did you consider expenses ie what you paid for the items you sold ?
> I’ve heard the ten year rule
Call IRS customer service and speak with a representative to ask when the CSED blows.
You don’t need to call the collections line for this information. Any representative can research your account and provide the date(s).
Did you file 2014? If yes, statute of limitations is 6 years for a substantial underpayment but you may need to assert the statute to the IRS. If not filed, prepare a return now. The IRS only has your revenue, not any of the costs, so prepare a correct return showing the actual business activity, including costs, and pay tax on the profits instead of the gross revenue.
As others have said. -get to an accountant asap.
Look on your Amazon account for the receipts, they’re probably still there. Those will be important.
“Didn’t make much, if any money. But according to paypal I took in over 20k in income …”
Really? Which is it?