Social Security taxes in arrears

[carat_man]

What is the name of your state? Michigan.
In 2002 I was newly self-employed and earned only $3700.00 via the 1099-M route. I was a newbie and did not pay any quarterly estimated taxes as I had no idea what my earnings would be.
At the end of the year, since I did not owe any income tax, I did not bother to file a tax return. I realize now that I should have.
Now the IRS says I owe the Social Security taxes plus penalties. They must be using the amount on the 1099's filed by the company that paid me to determine the taxes owed.
My question is: If I don't file a return for a particular year, then that year's income should not appear on a SS benefits statement. If I don't mind not receiving benefits on that $3700.00 why should the federal government care?What is the name of your state?

 

[taro]

if you only made $3700 you can surely reduce that to a minus figure by (irs number) deductions (i forget the number and am too lazy to look it up) This is where you claim 100% of equipment purchases instead of depreciation. Plus Gas mileage legal expenses. office expenses etc.

If you file the return with a zero or minus number that should end it. (don't claim a negative amount if you don't have one, it's just that I'm sure you did. You may want to hire someone.) My advice is in no way based on any legal backgroud, it's one self employed person to another.

 

[carat_man]

Thanks for the post, Taro. I'm in the process of inputing those business expenses. I assume by numbered deductions, you were referring to the standard deduction plus exemption. I'm not down to zero yet, so I'll keep this thread open a little longer.