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» From: Boston, MA

Dear TaxMama:

Hello. I'm enjoying reading your site and thank you for all your help. I thought that you could help me too.

Recently I'm facing a horrible dilemma. I worked for a small private business for about 3 years. A few days ago, I was been kicked out from my work, because the boss found out that I know more that he wants me to know. Of course, I didn't do anything bad, just people talking, I'm listening and I just know. That's all.

Of course, I had no contract and basically I can't do anything about it. I'm just with no job, that simple.

Of course, the biggest problem is that many people there get paid under the table, something that makes me angry, if not with the people who are desperate, but mostly with the boss who is taking advantage of them. I know that both are responsible. My first thought was to report everything to IRS, not to take revenge, really, but to find some justice in this so unfair system and way of living.

Another problem. Between the months of May-August, he took me off payroll and paid me straight. That time, I didn't realize that no payroll means no taxes, or it's illegal, but I know now that I'm responsible too. He put me in the payroll on September 2002. The amount for these 3 months was about $2000. Of course I feel shame for me, that why I thought to write to you.

Now, I've been kicked out, with no way for me to pay my rent now, and I can't do anything about it. That is the only way to find some kind of justice. I'm not a bad person, just angry, disappointed and a little miserable.

I will really appreciate your help. Thank you so much.

Connie

TaxMama Replies

Dear Connie,

Sounds like a tough break.

Go ahead and file your tax return for 2002, reporting ALL the income you earned.

You may want to get a tax professional to help you, since it could be a little bit complicated, depending on how you want to proceed.

Yes, you can certainly turn your old employer in to IRS and cause him a great deal of grief. In fact, doing this will actually reduce your taxes, since you'll be able to treat the income you earned during that three month time frame as though they were wages

Read the information here. And have your tax pro follow the instructions. It's a bit complicated.

Oh, and do file for unemployment.

They will object since you've only been on payroll for a short time. This time. But, since you've been on his payroll for three years, overall, you should qualify. But if you report the fraud your employer committed, they'll also investigate.

Good luck!

And don't worry about having done anything wrong. (The unemployment folks might yell at you a little. Just apologize and promise not to do it again.)

Best wishes,

Eva Rosenberg
Your TaxMama

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Library of Congress - 
ISSN 1532-0790
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Eva Rosenberg
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