Old 1099s

[MDEA]

Old 1099"s

The taxpayer will receive no refunds for old years. I have had several clients in same place the refunds are gone.

[JohnH]

#2 and #3 are correct

[ChEAr$]

Just be sure that the returns include the proper form disclosing how estimates were calculated.
The client I had in this situation had returns for previous years, hence I was able to come up with a percentage of subcontracted labor relative to the gross amount. (Form 89xx???? something like that?)

[BOB W]

If the IRS were to focus on this return they would dig into how much money it would take for this client to live on. You may want to add that to your due diligence efforts to file a complete return to the best of your knowlege. Normally we don't get involved when there is good documentation. But when guess work is part of a return, you need to do more.

[buzzardbreath]

Livable Wage

In my part of the country, a family can live on $25-$30K a year. This isn't San Francisco.
But they cannot live COMFORTABLY on that little. They can't send their daughter to ballet lessons or their son to private school.

As a matter of fact, the income levels for EIC eligibility keep going up and up, but it is a statistical fact that median incomes are going DOWN all over America since 2000. You see the signs everywhere. McDonald's used to be a good place for your teenage daughter to work for spending money when she was in high school, nowadays you can look in the restaurant and see 65-year old women working. During the same period beginning in 2000, there were 108 million jobs in the US which were full-time and those jobs today number some 85 million. Minimum wage increases were last passed in 2007 - the only time that has occurred in the 14 years since 2000.

People who used to make $20/hr. with benefits working in a plant 15 years ago are now making $8/hr working 20 hrs a week at WalMart. If unemployment has dropped from 9.5% five years ago to 6.3% last week, then why is there more food stamp assistance today than ever before?

The government has done precious little to avoid this slippery slope except to exploit rhetoric and point fingers. I would dare anyone from the govt to complain that my client should be making a living wage.