Family member hasn't paid taxes in years - advice?

[Anonymous]

I was just at a family gathering and heard some family members discussing a cousin who had been out of touch for many years but has recently been rebuilding family connections. We think that he has been working as a handyman for cash, not paying taxes on his income, for many years. He has no health insurance and presumably has not paid into social security, medicare, etc. Now he is having some health problems and probably will eventually need surgery, and our family is trying to figure out if we can give him advice on how to proceed. We think he is probably scared about trying to sign up for health care through Obamacare because he has been off the books and has no official income history, but we don't really know what his options are at this point.

Obviously, he has made some bad choices about his taxes and there are (and should be) consequences and penalties for that. But I'm hoping they aren't lifelong, irreversible consequences at this point and that there's a way to move forward. My family would like to encourage him to get things straightened out so he can get health insurance, pay into social security, etc., but we don't know what is involved. We don't necessarily want to rescue him, but would like to understand the process and give him information, support, and encouragement.

Does anybody know where we should start with this? He lives in Florida, if that matters. Advice or resources would be appreciated.

[Anonymous]

If he's been paid in cash (no W2's or 1099's) what's done is done w regard to past taxes. His current assets are his current assets. Proceed accordingly.

[Anonymous]

My sister works for the IRS, and she always recommends that delinquent taxpayers walk into an IRS office and let them help you. I know it sounds like walking into a trap, but there is an entire division of the IRS that is dedicated to helping taxpayers work through their problems.

[Anonymous]

No income, try for medicaid.

[Anonymous]

Anonymous wrote:No income, try for medicaid.

+1

[Anonymous]

Anonymous wrote:My sister works for the IRS, and she always recommends that delinquent taxpayers walk into an IRS office and let them help you. I know it sounds like walking into a trap, but there is an entire division of the IRS that is dedicated to helping taxpayers work through their problems.

Absuluty the best advise. This guy really doesn't have much to lose plus it's not like he made any real money during this time. Except the minor consequences and move on. This is no different then the million homeless people out there that have done the same. It's not like anyone's going to hail for something this minor plus he has no real means to pay a fine.

[Anonymous]

*Jail

[Anonymous]

Another vote for Medicaid. I would absolutely not walk into the IRS building! How could they tax you on income that they can't prove that you earned? As far as everything else, I wouldn't help someone who doesn't put any effort into improving their situation.