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Being sued by IRS
Posted by: PayPal issues ()
Date: March 26, 2015 01:58AM

IRS says I owe $40,000 for an online business where I only made $26,000. PayPal has been ripping people off and having people sued for years. Don't know what to do!

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Re: Being sued by IRS
Posted by: Not possible ()
Date: March 26, 2015 02:14AM

Story doesn't add up.

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Re: Being sued by IRS
Posted by: Gruntled ()
Date: March 26, 2015 06:44AM

It's possible. If PayPal reported the transactions to the IRS, as I believe they are required to do, and the OP never filed, and never paid the income/FICA taxes, penalties could be pretty bad, especially if it's for more than one year.

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Re: Being sued by IRS
Posted by: libs hate America. ()
Date: March 26, 2015 07:07AM

Fuck you lib and fuck your IRS. You voted for them and you get what you deserve.

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Re: Being sued by IRS
Posted by: stinky basement ()
Date: March 26, 2015 07:55AM

libs hate America. Wrote:
-------------------------------------------------------
> Fuck you lib and fuck your IRS. You voted for them
> and you get what you deserve.


Lol go back to your basement troll. Its too early to trolling. Go do something productive with your day.

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Re: Being sued by IRS
Posted by: Bill.N. ()
Date: March 26, 2015 08:06AM

There are a number of good tax lawyers in this area. Scrape up the cash and hire one.

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Re: Being sued by IRS
Posted by: Fannie Mae ()
Date: March 26, 2015 02:38PM

Freddie Mac

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Re: Being sued by IRS
Posted by: 3vyLc ()
Date: March 26, 2015 02:42PM

Bill.N. Wrote:
-------------------------------------------------------
> There are a number of good tax lawyers in this
> area. Scrape up the cash and hire one.

Exactly. I good tax attorney will have the IRS paying you. I know a guy who did pay for over 15 years. He got a good tax attorney. They went to the IRS. He paid some penalties but after the filings he actually got back around $3000.

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Re: Being sued by IRS
Posted by: IRS essentially files for you ()
Date: March 26, 2015 03:01PM

PayPal issues Wrote:
-------------------------------------------------------
> IRS says I owe $40,000 for an online business
> where I only made $26,000. PayPal has been ripping
> people off and having people sued for years. Don't
> know what to do!


Did you file? If not fill out the forms and file. Call them and let them know you are filing so the hold any action for a period of time. Usually if you have all your tax info and documents they will go from there.

The deal is that if you dont file the IRS essentially files for you and they dont calculate deductions just tax on gross receipts. If it was awhile ago there are probably 20% added fees per year starting on day one of the assessment. No matter you will want to file anyway so get with an accountant asap.

If it was 10 years ago and you owed 6 grand at the time it could easily be 40k by now.

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Re: Being sued by IRS
Posted by: DcCWp ()
Date: March 26, 2015 08:29PM

PayPal issues Wrote:
-------------------------------------------------------
> Don't know what to do!

You need a lawyer.

http://www.americanbar.org/groups/public_education/public-information/how-do-i-find-a-lawyer-.html

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Re: Being sued by IRS
Posted by: high income paypal earner ()
Date: March 26, 2015 08:45PM

If you had over $20,000 in transactions PayPal would have sent you a 1099k. They started doing this in 2011, before that a lot of people weren't reporting their paypal earnings on their taxes.

The IRS has been cracking down on paypal tax evaders, lot's of people were banking in hundreds of thousands per year and not reporting a dime.

The IRS will see your 1099K, your gross earnings. You have to file a 1040 to let them know your profit/losses. So that $40,000 you owe is going of the gross amount of transactions you made, not the net. So unless you made 100% profit on your transactions, you likely have deductions. Cost of goods, advertising, server costs, contracting, etc.

How long ago was the $26k made? Did you file a 1040? Any 1099k received (login to your paypal, check history, and click on reports)?

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Re: Being sued by IRS
Posted by: KD94v ()
Date: March 26, 2015 09:45PM

Send them a offer and compromise for 5k and wipe your hands clean.

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