Friend filed for tax extension.. uh oh

[St3ve]

His only income is cash, he hasn't filed a tax return in a few years at all. He owns a home.

He was talked into filing his taxes for his wife's income sake. So he decided to do it but filed the extension and now he's been notified that he's going to be audited.

So it got me thinking, for those of you that's sole income is "under the table", how do you deal with taxes with working spouses? What if your yearly house payments are close to as much as reported as income? Obviously the audit is going to flesh out some of these facts.. so is he going to get in trouble? Does the tax man bring in the fuzz for things to snow ball?

Anyone with experience in the matter or tax info in general would be greatly appreciated.

 

[ZZTops]

Get a CPA or at least have a consultation with one, volunteer nothing...

Good Luck...

 

[mojave green]

married filing separately. irs wants their money to be sure, but you, have no reportable income. your spouse may receive alot in non-reportable gifts/loans from generous relatives to cover house payments. but yeah, get competent legal advice. i'm high!

 

[resinryder]

Damn sure get legal advice. The irs don't show up to play.