I’m a hairstylist and I’ve been getting paid through a Square account, but I haven’t filed taxes for the last two years. This year, I started my own salon and now collect rent from others for booth space. I use my account for everything—rent, loans, supplies, marketing, you name it.
I’ve tried looking online, but the info is all over the place. I even went to someone for help, but they just lectured me and said I’m screwed, which wasn’t helpful at all. I do have receipts for everything since it’s all through one account. Where do I even begin to fix this?
You need to get real help from a CPA who handles taxes. It’s worth it, especially now that you own a business.
I had a huge mess—over $100k in back taxes. I brought my CPA a pile of old receipts, and they sorted everything out. They even got me refunds! It cost me a lot to fix it, but it was 100% worth it. If you’re near me, I can recommend someone.
You’re not alone in this, and it’s fixable. Get a CPA or Enrolled Agent to help. They’ll sort out the back taxes and set you up to stay on track moving forward.
Avoid people who promise big refunds—they’re often scammers. Look for someone who can help with bookkeeping or suggest software to keep things organized. They can also help you set up a payment plan if you owe money.
The IRS will eventually catch up if you don’t act, and it’s always better to file before they come knocking.
Definitely find a CPA or an Enrolled Agent. Don’t try to handle this alone. I’ve done taxes for hairstylists before, and there are a lot of specific things that need to be done right.
Get help from a CPA or a tax professional. They handle situations like yours all the time, and two years isn’t that bad. Don’t wait any longer, though! The IRS will start sending notices, and it only gets worse from there.
Even if you owe back taxes with penalties and interest, you can work out a payment plan. Just don’t ignore this—it won’t go away on its own.
Start fresh in 2024. Avoid the person who said you’re screwed—they’re not helpful. Make a list of all your income and expenses (rent, supplies, etc.) and subtract expenses from income to figure out your taxable income.
If you can, look for a volunteer tax service like AARP’s Tax-Aide for help. Fixing the last two years might mean some penalties, but at least you’ll get it sorted out.
@Delaney
I don’t agree with this. You should start with the previous years to stop more penalties from adding up. Also, volunteer tax services likely can’t handle complex business setups like yours with rental income and expenses.