Client Case Study:  You Can't Hide from the IRS

 

For seven years Al Capone was a crime boss in Prohibition-Era Chicago.  But in 1931, Capone was charged with income tax evasion. The moral of the story is that you might be able to evade law enforcement, but you can’t escape the IRS.

 

My client Anna is a full time student and part time hairdresser.  Two years ago she received a 1099 from her employer, but she wasn’t sure what to do with it, so she did nothing.  Anna didn’t understand that one copy of the 1099 goes to the employee, and a duplicate goes to the IRS.  So they know exactly how much she made that year, and they have a pretty good idea how much of that money is theirs. 

Anna had been getting letters from the IRS, but was unsure of what to do with them, so had been storing them unopened in the glove box of her car.  I convinced her to take them to a CPA so she could see what she owes and work out a payment plan.  If you have a client who is ignoring their financial issues, refer them to me for a free initial call.

*Client name and some details have been changed to protect privacy.