I messed up and need some advice

[PoorNow]

Last year, I was an independant sales consultant for a home party type company. I would go into peoples homes and do a demonstration, then they would buy cleaning products. I only worked at this very part time (Im a SAHM) and I didnt make very much money from it. (less than $1500) Since it was a Canadian company, I never was issued a 1099 form. We decided not to include it as income on our taxes. We went ahead and had our taxes done with just my husband's income. This was before I knew we'd be filing bk and having someone snooping through my financial past! So now Im nervous about this. I probably need to list it as income since its in the previous 2 years but Im worried they will wonder why its not on my taxes. Is it possible to call our accountant and have a revision done? Say it was an oversight or something? Should I just tell the trustee what happened? Will they even ask? How can I make this thing right?

[ColoradoBell]

Boy, that's a tuff question and I think, since you have an accountant that you'd best ask him.

I think that if you made $1500 over the course of a year, that you could probably justify a write off for a good bit of taht couldn't you? I'm no accountant but car (gas) and home office expenses should eat up a lot; plus there is usually food served and prizes, freebees given at the home parties which would take up another chunk. And weren't there upfront start up costs? Plus business card expenses, marketing expenses...

At the very least you might adjust your records to show both the income and the outgo as an excuse for why you didn't include it originally...maybe you thought that if your business lost money taht you didn't have to report anything to the IRS?

Good luck!

[GettingGoing]

I personally don't see $1500 income that didn't get reported 2 years ago causing a big deal at all. I think I would sweep it under the rug and go on about my bk. Thats just me though. maybe some of the more experienced people can chime in and help.

[ecsclb1724]

I would amend your taxes before filing, I don't see it being an issue as long as you have an amended return.