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Hi. I think i may have forgotten to pay taxes on 1099 income i had from a little PT job back in 1997. If i remember correctly i earned somewhere around $2000. How can i find out if i owe on this money? i assume the IRS will find out eventually, correct? I would like to correct this, and, if i owe them, pay it off gradually (as opposed to forcefully out of my bankaccount). any thoughts?

thanks-

jeff
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No. of Recommendations: 0
Hi. I think i may have forgotten to pay taxes on 1099 income i had from a little PT job back in 1997. If i remember correctly i earned somewhere around $2000. How can i find out if i owe on this money? i assume the IRS will find out eventually, correct? I would like to correct this, and, if i owe them, pay it off gradually (as opposed to forcefully out of my bankaccount). any thoughts?
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You should amend your return and attach a schedule C showing the income earned and any applicable deductions in arriving at the net profit. Pay the tax due with the amended return. If you cannot calculate interest and penalty they will send you a bill. be sure to amend your state return also in that IRS will report the changes to your state.

BTW - they will catch it if it was on a 1099!!

Ask them to abate the penalties in a letter expressing your deepest apologies and total ignorance of the law - and you will promise to never let it happen again. They may waive the penalty since you are a first timer.

If you want an installment plan obtain form 9465 and attach to the 1040X.

Pete
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