A hypothetical income tax question

Paul G · 05-29-2007, 02:35 PM

Lets say a person lives in Indiana and derives a small portion of income from Illinois, something like maybe around $10000 for the year. Lets say this person neglected to file a return for Illinois in that year. What could be the consequences of this hypothetical oversite?

Unknown · 05-29-2007, 04:47 PM

was there a hypothetical -w2?

Matatk · 05-29-2007, 04:51 PM

Paul-

Depends on several factors. Did you receive the income as cash (ie, you are a small business), was it a 1099, w-2? Can it be tracked? You can file a late return and pay the fines and penalties (or request that the penalties/interest be abated...there are special forms). Did you report the income on your federal income tax return? I'd worry about the IRS more. I've seen them levy peoples bank accounts and whatnot....not very nice. State usually just imposes penalties and interest and they will withhold refunds in the future or can even garnish wages. If you need more time, you can set up a payment plan.

I did business accounting for 4 years, but I don't do it anymore and my personal income tax experience is limited. Maybe someone else on the forum has more experience and can help you more than me.

Good luck with your "hypothetical" situation.

Matthew

Paul G · 05-29-2007, 05:05 PM

Quote:

Originally Posted by blznsdl

was there a hypothetical -w2?

Call it rental income from an inherited single family home. No W2 or 1099 or anything.

The income was reported on the federal 1040

johnnyvettes · 05-29-2007, 05:44 PM

Your Going To Jail !

Unknown · 05-29-2007, 05:56 PM

Quote:

Originally Posted by Paul G

Call it rental income from an inherited single family home. No W2 or 1099 or anything.

The income was reported on the federal 1040

You must donate 1/2 (of tax due to state of IL )to chicago crew for beer at Bloominton gold or we will rat you out.

send 37.29 cents to Chicago Crew C/O City Club Naperville IL and all will be forgiven. Don't delay

KARLDDS82 · 05-29-2007, 06:29 PM

Quote:

Originally Posted by johnnyvettes

Your Going To Jail !

Comfortably Numb · 05-29-2007, 08:13 PM

Quote:

Originally Posted by Paul G

Lets say a person lives in Indiana and derives a small portion of income from Illinois, something like maybe around $10000 for the year. Lets say this person neglected to file a return for Illinois in that year. What could be the consequences of this hypothetical oversite?

Rumor has it that the Indiana Tax Bureau invented the phrase that was used in Pulp Fiction - BRING OUT THE GIMP.