I screwed up - help me w taxes

[Anonymous]

I know I screwed up and a lot I have excuses reasonable and unreasonable so hearing “you should have done it” won’t help me. I know. I had a nanny a few years ago that was legally here but not a citizen. I paid her cash, always thinking we were leaving the city and it was temporary. I asked her about the correct forms and Care.com and printed out the forms and for her own excuses too and my lack of checking, those forms were never done. Due to my job, I need to back pay, I need to fix this, I can’t sleep, I keep thinking the IRS will come and put me in jail. I know I need to pay taxes and penalties and am willing to pay it so I can have a clean slate and not be delinquent. I don’t know the nanny’s social security just name and address. Please help. Have any of you done backpay? Should I hire a lawyer I can’t really afford? Any advice on how I can fix this?

[Anonymous]

How long did she work for you?

[Anonymous]

Relax and forget about it. The IRS won’t put you in jail. You can talk to a tax attorney if you feel you must and you don’t need her current address or anything from her to pay your portion of back taxes.

And stop calling her a nanny and call her a babysitter to the IRS.

[Anonymous]

8 months. Helpful to reframe my language. People know she worked for us because they asked who is watching our baby. For something like care.com could I use them without her info? When I called a year ago they said they could backdate but needed her info. My new job has a security clearance requirement hence the panic.

[Anonymous]

Just contact the irs. If you go to them, explain the situation and ask to set up a payment plan, they’ll help you. They only through people in jail who refuse to pay after they prosecute them.

[Anonymous]

Anonymous wrote:Just contact the irs. If you go to them, explain the situation and ask to set up a payment plan, they’ll help you. They only through people in jail who refuse to pay after they prosecute them.

I'm a tax attorney and this is no true. You can go to jail for multiple reasons, and refusing to pay is not the only one. There is indeed a criminal section relating to payroll taxes, which is what OP owes. However, I doubt OP is going to jail but her security clearance is a real concern. You're going to have a really hard time contacting the IRS for anything right now, but I would hire someone to help you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Just contact the irs. If you go to them, explain the situation and ask to set up a payment plan, they’ll help you. They only through people in jail who refuse to pay after they prosecute them.

I'm a tax attorney and this is no true. You can go to jail for multiple reasons, and refusing to pay is not the only one. There is indeed a criminal section relating to payroll taxes, which is what OP owes. However, I doubt OP is going to jail but her security clearance is a real concern. You're going to have a really hard time contacting the IRS for anything right now, but I would hire someone to help you.

OP here - should it be any tax attorney or one that specializes in this? Or should I just call IRS and see my options, is that risky? I worry an attorney looks like I’m admitting guilt or makes it seems even more serious. Thank you everyone you don’t understand how this has weighted on me so heavily and it’s time to confront it. Do you think I won’t be able to get the security clearance?

[Anonymous]

Hire a CPA, not a lawyer.

[Anonymous]

What do they ask during the security clearance? Do they look for probes , talking to neighbors, looking through your finances? I would start there. Figure out everything they will know of you. Then how much will they ask neighbors friends....
If they will come and talk to your neighbors, which I think they do, you definitely shouldn’t lie. One thing you could do is call her an occasional babysitter and just try to stick to the lowest income she made from you. Also, only a certain amount of money needs to be taxed, if it’s under a certain amount nanny doesn’t have to file taxes. So first I’d think about all of these issues, then you can start thinking about how to solve it and who to contact.
Do you still talk to your babysitter just in case, or you don’t have contact to her anymore?

[Anonymous]

Anonymous wrote:What do they ask during the security clearance? Do they look for probes , talking to neighbors, looking through your finances? I would start there. Figure out everything they will know of you. Then how much will they ask neighbors friends....
If they will come and talk to your neighbors, which I think they do, you definitely shouldn’t lie. One thing you could do is call her an occasional babysitter and just try to stick to the lowest income she made from you. Also, only a certain amount of money needs to be taxed, if it’s under a certain amount nanny doesn’t have to file taxes. So first I’d think about all of these issues, then you can start thinking about how to solve it and who to contact.
Do you still talk to your babysitter just in case, or you don’t have contact to her anymore?

I’m just imagining what will happen if OP says she was an occasional babysitter and a sahm or retiree says something about the nanny who was there everyday for hours...

I remember the questions we were asked about a neighbor. Thankfully, we had no dirt to spill.

[Anonymous]

OP here - it’s an in-depth clearance and I’m done not fixing this. I should have paid the taxes then I just want this fixed. I contacted a CPA and will start there to amend. Not in contact with her any longer. I want to say this was a situation where we had offers in on houses and letters to supervisors telling them we were moving and things kept falling through and we lived out of boxes for months, this was supposed to be a “watch the baby while we pack and move” and became a nanny situation. But excuses don’t matter for IRS. Seriously use this as a cautionary tale for anyone considering not paying, my livelihood is at stake now.

[Anonymous]

Anonymous wrote:OP here - it’s an in-depth clearance and I’m done not fixing this. I should have paid the taxes then I just want this fixed. I contacted a CPA and will start there to amend. Not in contact with her any longer. I want to say this was a situation where we had offers in on houses and letters to supervisors telling them we were moving and things kept falling through and we lived out of boxes for months, this was supposed to be a “watch the baby while we pack and move” and became a nanny situation. But excuses don’t matter for IRS. Seriously use this as a cautionary tale for anyone considering not paying, my livelihood is at stake now.

With an in-depth clearance, this is going to be a huge red flag. Although you’re taking steps to resolve it now, they WILL notice that the timeline for fixing it is only after the security clearance was an issue.

[Anonymous]

Anonymous wrote:I know I screwed up and a lot I have excuses reasonable and unreasonable so hearing “you should have done it” won’t help me. I know. I had a nanny a few years ago that was legally here but not a citizen. I paid her cash, always thinking we were leaving the city and it was temporary. I asked her about the correct forms and Care.com and printed out the forms and for her own excuses too and my lack of checking, those forms were never done. Due to my job, I need to back pay, I need to fix this, I can’t sleep, I keep thinking the IRS will come and put me in jail. I know I need to pay taxes and penalties and am willing to pay it so I can have a clean slate and not be delinquent. I don’t know the nanny’s social security just name and address. Please help. Have any of you done backpay? Should I hire a lawyer I can’t really afford? Any advice on how I can fix this?

Well, apparently, you have a functioning brain so use it! You will have to contact IRS by email (because you will never get through byvohone) and explain situation. Better still, send a letter with return receipt so you know that letter has been received. Explain situation in concise language. Tell them you need to know how to correct this situation and quickly.

Who knows how long it will take before you hear from them but it will be on record that you have written to them to correct this situation. There will be a fine but you are not going to prison so calm down!

[Anonymous]

You're not going to prison, OP. You may have to pay penalties but that's all. Good luck!

[Anonymous]

OP here thank you everyone for your help and words of advice I appreciate it. Am trying to be proactive and fix this.