Character and Fitness Help Forum

[quickhelp]

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?

[whymeohgodno]

Tag for reference.

[theskippa10]

Pay taxes

[red_alertz]

always disclose

[quickhelp]

Pay taxes

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

[whymeohgodno]

0 helpful answers so far.

[glitter178]

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]

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]

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.

[SemperLegal]

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.

[glitter178]

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.

[sambeber]

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]

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.