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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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i havnt filed taxes for the 2002 taxation year. I was ...

Customer Question

i havnt filed taxes for the 2002 taxation year. I was doing some adult online chatting to make some extra money. I was sent cheques from the USA. The USA didnt have my social insurance number and other then my cashing the cheques into my bank account. I am assuming the government wouldnt know that I was receiving any money. However I just got a notice to file a 2002 tax return. I know legally I have to declared the entire amount that I made. However right now today that money is spent and I dont have really $30,000 to actually pay to the goverment in taxes owed. So my question is can I just say I made nothing that year as I was only 20 years old. Do they actually know how much I made since the money came from a hole in the wall adult website. Hate to give up money if the Gov doesnt know about the money. Are they just really looking for a Tax return or they know I made money.
Submitted: 9 years ago.
Category: Tax
Expert:  Marvin,EA replied 9 years ago.

Hello and thank you for using Just Answer. The IRS will normally send a series of notices to non-filers and stop-filers requesting that returns be filed. If the taxpayer fails or refuses to respond to the notices, the IRS has several ways to deal with the delinquency. It may prepare the tax return for the taxpayer based on the information documents filed by payers, or attempt to contact the taxpayer by telephone, or assign the case for field investigation. Internal Revenue Code Section 6020(b) authorizes the IRS to prepare an individual income tax return on behalf of the taxpayer. An income tax return may be prepared, signed and assessed without issuing a statutory notice of deficiency.

You should report the income that you earned in 2002 and deduct all of your expenses you incur to earned the income in 2002. You do not know the information the IRS have on you or the income you earned in 2002. They might have the financial record of the company you work for online in 2002.