Question

What is the name of your state? TX

I have a friend who's ex found out some things on her and has turned her into the IRS last week. She has owned 4 homes beside the one she lives in and rents them out. She has owned these homes for at least 4 years and has never paid taxes on them/turned them into the IRS. The reason she says she hasn't is cause she looses money on them and doesn't make money off of them, not sure if she is telling the truth there, but that is her reason. Anyhow, she was told that she also has to turn her losses into the IRS, but at this point she hasn't done it. So, her ex DH found out about what she has been doing and turned her into the IRS criminal devision.

So, my question is what if anything could happen to her? Do you think she will be audited or worse? She is scared now and frankly I would be to, but not sure if she hasn't been asking for something to happen to her. So, if anyone knows anything about this please share.

Thanks, JoandJa'smom

[racer72]

Tell your "friend" to come here and post her questions. We don't like playing 20 questions with others that can't answer our questions if we have any.

[Snipes5]

She should report everything on tax returns before they have the chance to audit.

If she filed taxes for those years, she should amend the tax returns. If she failed to file, she should file the tax returns.

She should have this done by a tax professional.

Snipes

[abezon]

And she should do it quickly, since the IRS can deny ANY expenses for rental income if the return is filed more than 3 years after the due date. BTW, she'll probably get a refund, since most rentals run at a loss.