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Posted: Sat Dec 30, 2006 9:31 am Subject: |
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The cleaning company is probably calling its employees independent contractors, which means they can legally get out of not withholding. However, the IRS has tests to determine if a person really is an employee or a contractor, meaning that they are in business for themselves. If the company fails these tests, meaning these people are indeed employees, that means the IRS can go after the company for not paying payroll taxes AND the employee for not paying them. Does the cleaning company give its workers a form 1099 at the end of the year? If they do, this form is sent to the IRS like a W2 is, which means that it can still go after Brenda's daughter for taxes. Along with paying her usual portion of taxes that would normally be withheld, she will also have to pay the employer's portion on FICA and Medicare, since she is considered to be self-employed.
So what I am saying is, to quote the old song, you can run, but you can't hide. It would be better for her if she came to grips with it now, since no sane person wants to be in trouble with the IRS.
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kscornell
Moderator


Joined: 22 Jul 2006
Posts: 3603
Debtcc Points: 32830
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Posted: Sat Dec 30, 2006 11:45 am Subject: no taxes |
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Her job that does not take out taxes did not have her fill out any type of paper work ,she gets a pay check from the company and has them cashed at a place called we cash checks any kind of checks and they take out 3% to cash her check.She has no checking account because when she did have one she bounced so many checks that the bank closed her account and she still owes the bank that has been 2 years ago.Bottom line she owes credit cards,car loans ,she has an eviction ,she owes cell phone company,bow flex and she sold the bow flex for 240.00 dollars and still owes 1900 on it.She has so many debts it is unreal,she stopped paying on everything she called me one day and said she is not going to pay on any of her credit cards again because she can not get ahead,so now the collection agency calls every weekend and a new one colonial finace is calling,I can not get her to talk to them and sometimes I would like for them to put her in jail so she will know that this is not a joke.
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brenda1111
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Debtcc Points: 100
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Posted: Sat Dec 30, 2006 12:16 pm Subject: |
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You cannot go to jail for being a debtor or owing somebody money. There are certain situations where someone can be arrested, but not specifically for the debt; it is more for violating a court order / contempt of court.
A judgment is just a courts finding of the facts. In a money judgment, someone sues another person for X amount of dollars. If a judgment is entered, it is simply the court saying "we agree that defendant owes the plaintiff X dollars."
A judgment by itself does not compel the defendant to pay. What comes next is the enforcement of the judgment.
All states have different laws regarding post-judgment enforcement/collection. In Illinois, a judgment creditor can file a Citation to Discover Assets. The creditor can use a Citation to call the debtor in and ask questions: where do you work, how much money do you make, where are your bank accounts, what property do you own, etc ? If they don't show up to the Citation hearing, then there is another hearing set to Show Cause why they didn't show up the first time. If they don't show up the second time, the judge can issue a body writ and send out a warrant for the debtor's arrest. ... the following notice is required so that debtor's cant claim they didn't know:
| Quote: | | All citations issued by the clerk shall have the following language, or language substantially similar thereto, stated prominently on the front, in capital letters: "YOUR FAILURE TO APPEAR IN COURT AS HEREIN DIRECTED MAY CAUSE YOU TO BE ARRESTED AND BROUGHT BEFORE THE COURT TO ANSWER TO A CHARGE OF CONTEMPT OF COURT, WHICH MAY BE PUNISHABLE BY IMPRISONMENT IN THE COUNTY JAIL." The court shall not grant a continuance of the supplementary proceeding except upon good cause shown. |
The instant a debtor is served with the Citation, it acts as a court order that freezes all of the debtor's assets. Meaning, they are not allowed to go take all the money out of their checking account, or put all their property in the spouse's name. To do so would be also be considered contempt of court, which is a punishable offense ... this is just an exerpt of illinois law:
| Quote: | (735 ILCS 5/12‑301) (from Ch. 110, par. 12‑301)
Sec. 12‑301. Contempt for concealing property. Any person who hides or conceals any property so that it cannot be taken by virtue of an order or judgment or, on the officer's request therefor, refuses to deliver property to the officer having an order or judgment for the taking of the property is guilty of contempt of court and subject to punishment therefor.
(Source: P.A. 83‑352.) |
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DebtCruncher
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