Character and Fitness Help

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quickhelp
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Character and Fitness Help

Postby quickhelp » Wed Apr 27, 2011 5:11 pm

This is probably me being neurotic, but want to ask.

For several years (it'll be about 8 years after graduating law school), I worked in my family business. As such, no paycheck, no taxes. I was paid by my parents. I plan on being forthcoming in my evaluation and disclosing. What problems should I expect from the above?
Last edited by quickhelp on Wed Apr 27, 2011 5:39 pm, edited 1 time in total.

whymeohgodno
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Re: Character and Fitness Help

Postby whymeohgodno » Wed Apr 27, 2011 5:12 pm

Tag for reference.

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theskippa10
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Re: Character and Fitness Help

Postby theskippa10 » Wed Apr 27, 2011 5:20 pm

Pay taxes

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red_alertz
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Re: Character and Fitness Help

Postby red_alertz » Wed Apr 27, 2011 5:37 pm

always disclose

quickhelp
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Re: Character and Fitness Help

Postby quickhelp » Wed Apr 27, 2011 5:39 pm

theskippa10 wrote:Pay taxes


I have since the business closed down. But when the family is struggling, that took my priority

whymeohgodno
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Re: Character and Fitness Help

Postby whymeohgodno » Wed Apr 27, 2011 5:40 pm

0 helpful answers so far.

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glitter178
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Re: Character and Fitness Help

Postby glitter178 » Wed Apr 27, 2011 5:50 pm

I don't know. This sounds like it may be a huge problem, though OP didn't disclose enough info to really know. Worse scenario it's ... tax evasion? disclosing is not going to be the issue. Paying penalties and straightening up the mess with the IRS will be.

quickhelp
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Re: Character and Fitness Help

Postby quickhelp » Wed Apr 27, 2011 5:53 pm

It was a very small business. I wasn't pulling in big money (actually, sometimes less than minimum wage in order to keep it afloat). Overall store sales were less than 200,000 for the restaurant.

Not sure what else I could disclose to allow for a better answer

quickhelp
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Re: Character and Fitness Help

Postby quickhelp » Wed Apr 27, 2011 5:57 pm

glitter178 wrote:I don't know. This sounds like it may be a huge problem, though OP didn't disclose enough info to really know. Worse scenario it's ... tax evasion? disclosing is not going to be the issue. Paying penalties and straightening up the mess with the IRS will be.


The one thing I guess I can add, since the business has closed, I have always had taxes taken out. Further, I have volunteer hours with state officials easily totaling over 300 hours.

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SemperLegal
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Re: Character and Fitness Help

Postby SemperLegal » Wed Apr 27, 2011 6:02 pm

quickhelp wrote:The one thing I guess I can add, since the business has closed, I have always had taxes taken out. Further, I have volunteer hours with state officials easily totaling over 300 hours.



Hmmm, if you're not a 0L please tell where you went to law school. I have a small interest in tax law and you seem to be pretty good at it.

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glitter178
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Re: Character and Fitness Help

Postby glitter178 » Wed Apr 27, 2011 6:05 pm

then this is what I will say: get your tax situation in order. i'm assuming you haven't started law school yet? or at least have a bit of time before you have to file your Moral Character and Fitness app. Which means, you have time to sort this out with the IRS and at least begin payment on back-owed taxes and/ or penalties, if necessary. Then, you disclose on the C&F app that your unique work situation led to you not properly filing your taxes which, upon you realizing it, you rectified. (insert proof from IRS.) should be no problem. I think the main issue is having tax and debt issues that you aren't at least attempting to solve, not just the issues themselves.

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sambeber
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Re: Character and Fitness Help

Postby sambeber » Wed Apr 27, 2011 6:08 pm

I'm no expert by any means, but I think the only prudent path is this:

Go talk to a tax professional. Then go talk to the IRS. Immediately. Like, today or tomorrow.

sarahh
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Re: Character and Fitness Help

Postby sarahh » Wed Apr 27, 2011 9:59 pm

If you did not make that much, it is possible that you did not have to file. You should see what the income filing requirements are for the years you did not file. If you did have to file, you should file the returns now. See an accountant if you cannot do it on your own. You may not even owe, but if you do, you may be able to work out a payment plan with the IRS. You should check for the state as well. Also remember that that there is FICA in addition to income taxes. If you were a regular employee who should have gotten a W-2, your parents are responsible for half of that. I am not sure how unpaid FICA should be handled - I would talk to the SSA or an accountant.




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