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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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My friend was in relationship, she and boyfriend owned a

Customer Question

My friend was in relationship, she and boyfriend owned a business together per her understanding. When they split up she went to court to get her half of value of business, long story short judge decided she was an employee, not a partner but her exboyfriend never paid social security taxes on her for the 14 years they were together. Is there anyway to get the IRS to intervene to get him to pay the back social security taxes as she is now getting old enough to draw social security but her benefits are limited due to no social security tax payments made on her behalf for 14 years. What can she due?
Submitted: 3 months ago.
Category: Tax
Expert:  emc011075 replied 3 months ago.

Hi. My name is ***** ***** I will be happy to help you.

How they run the business? As partnership?

Expert:  emc011075 replied 3 months ago.

Unless the business was incorporated, the profit should had been reported on their individual tax return, subject to self-employment tax. Self-employment tax is social security and medicare tax for self-employed individuals. If you friend had received any type of compensation for running the business, the social security tax had been paid by your friend. The IRS will not intervene based on the court decision. If the boyfriend reclassify her as an employee, issue her W2, and pay all the social security tax, she would have to amend her tax return for all those years and claim back the self-employment tax. But the problem is the 3 year statute of limitation. She would lose most of it. It would be for her own advantage not to do so. And if she never reported any income, she would still have to amend all the returns, claim the in come and pay back all the income tax plus interest and penalties.

Expert:  emc011075 replied 3 months ago.

Any questions?

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