… And I am a bit scared. I received a letter from the IRS on Friday, and it is still sitting on my desk, unopened, because I am afraid to see what it says. I messed up a few years ago on a tax return. I didn’t report part of my income, because I thought I was being paid under the table, totally illegal. My boss was paying me cash each week instead of an actual check or direct deposit, and he didn’t provide me with a W-2, so I didn’t think he was reporting my income to the IRS. It turns out he was reporting it. I’ve already received mail from my city’s department of taxation regarding the same tax return, saying I owe back taxes. I’m so screwed. It’s only a matter of time before my state comes after me, too.
For my non-American friends, I’m sorry if any of this is confusing. The IRS is the Internal Revenue Service, which essentially is the department of taxation for the federal government, and a W-2 is a summary of an employee’s income and income taxes paid for the year, sent to employees (or made available electronically) the following January.
Okay, I read it and it had nothing to do with that tax return. It was just a notice that my IRS data from last year’s tax return had been furnished to the Dept of Education for my income-driven repayment plan on my student loans, something I was already aware of, as I was the one who initiated it. My student loan payments are income-based; I could never afford those loan payments if I had to pay the full amount.
So I guess I was scared of that letter for no reason. I am still worried about my tax situation, because I do owe money to my city and state from that year.