Hello Reddit, I just got a letter in the mail from the IRS for back taxes for 2017 with the code CP504 worth about $18,613.38. That year, I had a min wage job to support myself through college plus an e-commerce venture I started with a college buddy. I made about 3-4K in taxable income from that job. For the e-commerce venture, We used the platform Shopify and if you guys are aware, you have to put in your SS which I ended up putting mine before producing any sales. So, my SS was the one on file. We also filed an LLC in the state of Delaware with both of our names on it (I'm from California). My partner is in the process of sending a P&L sheet for that entire year.
For the E-commerce venture, I got bought out in March of 2017. From Jan to March that venture produced 31K in gross sales, I'd have to look for the actual profit. At most, I'd say maybe 60-65% of that was profit. I got bought out for about 7K in March due to me wanting to focus on school and it was taking a lot of my time. My partner ended up doing 56K for the year including the 31K from Jan - to March of 2017. Also, I do have in writing that I was bought out in March of 2017 (I have this in legal writing). I'm assuming the IRS assumed that I still owned the business throughout the year since I didn't formally do anything to state I didn't, on that part in which I do take myself to blame for.
I don't even think I had over 10K in liquid cash at any point in 2017.
I'm sure I do owe some taxes for that year but it shouldn't even come close to 18K.
I've been researching my options so far and I'm going to call the IRS first thing in the morning and my deadline is about a month away so I have some time to figure this out. Can anyone recommend resources we could use or next steps to take?
Submitted November 15, 2020 at 08:08PM by Smart-Curve-3222 https://ift.tt/3lC7uYB
