QUESTION

Is there anything she can do about this or prove prior self-employed unpaid taxes?

Asked on Jan 17th, 2013 on Taxation - California
More details to this question:
I had a prior business that I ran back in the 80's and unfortunately, the business went under. I was informed by the IRS about never paying self-employed taxes. My daughter is now trying to hang this over my head because I wasn't able to put anything in my name after this audit, so; I successfully produced a used car lot business through my sons name and everything owned is in his name. Well, my daughter feels this is wrong because I have nothing put in her name so all will go to my son shall something happen to me. She is threatening to contact the IRS to notify them of the role I play in this used car lot business. To be totally honest with you, I am a wholesaler and purchase all vehicles through this company under my son’s name in which the initials of the company stand both for his name and mine as well. My son doesn't not put anything in my name whatsoever due to these prior taxes, but I'm sure if my son were subpoena or any of the other employees, they would testify to the fact that I do work there and purchase all vehicles through my sons company name. My daughter is threatening to turn me in for this but due to the fact that she is being left nothing and feels justly unfair so she is wanting to hurt me back in any way she knows how.
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1 ANSWER

Taxation Law Attorney serving Sacramento, CA at Rex Halverson & Associates, LLP
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Both the IRS and FTB have Investigations Divisions that would take calls, emails or letters from anyone regarding taxpayers that might not be in compliance with all tax laws. So your daughter's threats might be real. If self-employed taxes were not paid by you and you knew that you owed them, the IRS may assert fraud which has no statute of limitations. On the other hand, if you simply did not know that you owed these taxes in the 80's, the 3 year statute of limitations ran a long time ago and the IRS will not pursue you. The statute of limitations in California is 4 years. If the IRS has not been hounding you for the self-employed taxes, I would hazard to say that they have long ago written them off. Your summary does not provide me with sufficient facts for me to comment much further. You should talk to a competent tax attorney or CPA to settle the issue once and for all. Why have it hanging over your head forever?
Answered on Jan 24th, 2013 at 7:55 PM

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