If you are so concerned about the provider that you do know that hasn't filed, why don't you volunteer to pay them for her ... rather than seek the advise of others as if it is any concern of theirs, which exactly does what for you and/or the provider that hasn't filed?
The provider is I'm certain aware of the consequences of whatever she chooses to or not to do.
Just making a point as you I am certain being an engineer and does more than likely does his own taxes know exactly what would happen in this particular case and many others ... federal, state or otherwise....
What would happen to you if you haven't filed a federal income tax return in 6 years? How long could you go before you got arrested? Would you get arrested? I assume so, otherwise how could they enforce the law? (I know a provider who hasn't filed a federal tax return in some 6 years or so and not any state returns in any of the states she has worked in)
As I have said before - get your tax advice from a CPA or Tax Attorney (like me) - Ok what happens if an Escort or any other Taxpayer willfully fails to file Federal Tax Returns?
That person risks an Indictment and prosecution - for failure to file tax returns and failure to pay federal income taxes. Most States have similar statutes.
Maximum penalty would be one year in jail for each year you do not file. There isa statute of limitations which I believe is six years. So six years would be top criminal penalty.
Then there are penalties and interest which would be a bit harder to figure out. No statute of limitations there.
All this assumes they catch her. Ifs he turns herself in and files I doubt that they would want to send her to jail. They might even settle with her on the back taxes and penalties. And if they never catch her ---well then none of this actually happens.
At this point though I suspect she is just afraid to think about it all.
They may never catch her if she's low key, but that's a limiting life. On the other hand, if she ever purchases a nice car, starts putting money away for her old age or purchases property, she will get caught.
She should contact a tax lawyer and see what she can do to admit not paying by participating in a Voluntary Disclosure and Amnesty Program, or the USA equivilant.
If she gets caught it'll be brutal. If she admits it, they'll be more reasonable, but they'll still want what's owed. If there's very little in the way of money going through accounts she may find she owes little or nothing.
Time for her to go over her bank statements, and pull out receipts. She should number crunch and approach the accountant and tax lawyer with all that in hand.
I know a provider who earned quit a bit of cash. I tried to
Explain to her, that she needs to be honest and file her taxes.
She also went a bought a car, and paid cash. Here is the problem.
She filed a return, and collected earned income credit. Will she
Fall under the radar because she did file a business/personal return,
Or will it be much worse if they find her?
Why do you guys bring hooker problems to the board as if its your problem? You gave her the right advice to be honest with her taxes. Above and beyond that, whatever she does is her problem. If she is an adult (which I hope she is), she doesn't even need advice that she needs to fill taxes...
I made $7000 when I was 18 yrs old, working in Fast Food joint, and still filed my taxes. I didn't have to be told by either of my parents. Go figure...
You need to stop worrying about what would happen to her... She needs to care about it.
Regardless of the circumstances, if they realize they've been lied to, they'll maker the person's life miserable.
You can't convince someone to do the right thing, they have to come to that conclusion alone.
Ultimately, if a lady wants to live comfortably in her old age, she can't go through life paying for everything in cash and stuffing money into security boxes. The moment she does anything for her long term well being, they're going to wonder how she can suddenly afford to do so.
Now, if in the year she buys the property or starts putting away for retirement in investments, she files honestly, she won't have anything to worry about. She'll have to move money through accounts to do any of that anyway. What's important is that she's honest about everything that has a paper trail.
However, if the paper trail shows she's broke, but her clothes are designer, she has expensive jewelry, vacations a lot and drives a car that she shouldn't be able to afford, they'll do a lifestyle audit. That can be BRUTAL, because at that point, they just arbitrarily throw a number at you. You can dispute it, but both the tax lawyer and the accountant will charge a premium to do so, with no guarantee they'll win.
If you are so concerned about the provider that you do know that hasn't filed, why don't you volunteer to pay them for her ... rather than seek the advise of others as if it is any concern of theirs, which exactly does what for you and/or the provider that hasn't filed?
The provider is I'm certain aware of the consequences of whatever she chooses to or not to do.
Just making a point as you I am certain being an engineer and does more than likely does his own taxes know exactly what would happen in this particular case and many others ... federal, state or otherwise....