Unreported Tip Income
Posted: Mon Feb 06, 2017 3:36 pm
Optimal: Have him file three years' worth of amended returns reporting the extra income. IRS has little time to audit someone who is coming back to report income they never noticed was missing.Suboptimal: just make sure he reports tip income on 2016 Form 1040 and all future years. IRS is unlikely to open an audit of past years, but it might.- John D. Faucher
On Monday, February 6, 2017 3:28 PM, "GMAIL Webblaw@Gmail.com [cdcbaa]" wrote:
Counsel, Potential client has been employed in a service industry for ten years. W-2 pay is minimum wage. No allocated tips on the W-2. He has not reported tip income buts want to come into IRS compliance so he can qualify for a mortgage someday. Schedules I & J only make sense if he includes his tip income. So, if we schedule the tip income, and he reports his tip income for 2016, will that trigger and IRS avalanche? I looked for an IRS amnesty program for tip reporting, but found nothing. Webblaw@Gmail.com Best regardsLarry Webb California Board of Legal SpecializationCertified Specialist in Bankruptcy Law State Bar of California 229344Central District California"A Debt Relief Agency"Check out my BlogMap Location Webblaw@gmail.comLaw Offices of Larry Webb484 Mobil Ste 43Camarillo Ca 93010 P 805.987.1400F 805.987.2866C 805.750.2150 Law Office Larry Webb Bankruptcy Attorney
The following notice is required by the United States Supreme Court's interpretation of11 U.S.C. 101(12A): The Law Offices of Larry Webb is a Bankruptcy Attorney DebtRelief Agency as defined by 11 U.S.C. 101(12A) of the Bankruptcy Code. We help people file for relief under the Bankruptcy code. Bankruptcy is a Federal Court Proceeding that supersedes State Court
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