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He should have a tax professional prepare the 3 years. He would need to gather the income he made during the year with the applicable expenses. If he does not file than the statutes for these years would remain open and if he owed money any penalties and interest would continue to accrue. He would be looking a late file and late payment penalties (if he owes money).
I am assuming that the money did not go through a bank so there would be no paper trail. Did you son keep track of the number of tattoos that he prepared? The $1500 a month would be an estimate of the net income.
The bank statements would be a good start. He would be able to deduct his expenses. It is possible that the vendors that he purchased from would have a history of his purchases. If you under report your income by 25% there is the potential for additional penalties. The bank statement would at least show the amount of income from the business.
You would not need a tax attorney. It is a case of a non-filer. The amount of penalties would be determined by any taxes that he owes. If he does not owe any taxes then there would not be any penalties. The taxes your son would need to be considered about are self-employment taxes. Self employment taxes are 15.3% of the net income. In your prior post you mentioned the net income was $18,000. This would come to Self Employment taxes of $2,700. The penalties would be a late file penalty and a late payment penalty. The late file penalty is 5% per month up to a maximum of 25%. The late payment penalty is 1/2% per month up to a maximum of 25%. The maximum penalty per month for the combined penalty is 5%.
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