Non-Filer Question and Other

[Number Six]

I was speaking with a long term non-filer last night about getting into compliance. Makes mainly cash income through farmer's markets. Net income last year was under 10K. He doesn't want to have to come up with self-employment tax on said income, after paying much of their disposable income for property taxes. I told him to go to a local library and find an expert on taxes to get his low income situation adressed in a legal way. I made some more arguments with him, the Wikipedia article on the Social Contract, and how filing his taxes will help him establish some real identity of his own. I will relay answer back to him.

The apple farmer who I spoke with in response to my other posting on charitable donations--about how he could deduct the cost of growing--fertilizer, labor, etc. in making the donation to a food bank. He said he stopped record keeping on labor when it became clear and depressing to him how little he was making on an hourly basis. His accountant isn't competant enough to help him on this. He fears that a change of tax return could generate a lot of aggravation if questioned.

[jkeeb]

Apple farmer-can deduct cost of goods donated as long as that cost does not include his own labor. Amended returns do not garner additional scrutiny with the exception that they are manually processed and reviewed for outlandish claims.

Long time non-filer, cash type person. There would be a good chance this guy would never get caught as long as he continues a mediocre lifestyle. When it's time to collect social security he may be SOL, but many under 40 would doubt the solvency of SSA. Of course he would never want to marry as that brings his problems to someone else, never want to get a mortgage (I have a feeling banks might be a little stricter in the next 10 to 20 years), never want to get a Small Biz loan or student loan. There are ways he could fall into the IRS net, but frankly, not likely.

[Number Six]

I'll give the information to the taxpayer, though he probably gives unquestioned authority to the accountant. He has an outstanding tax debt, so he is probably scared of an "eye-opener" in my accountant's words. Maybe I'll send him a copy of Dan Pilla, Jr.'s book, "The IRS Problem Solver".

On the non-filer. Eventually the non-filing situation will complicate his life if he tries to get a loan,SS benefits etc.