Home |IRS Tax Return | I worked off the books in a bar before I had my green card and didn't fill out a W9 or file a 1099. The bar contacted me about incorrect W9 information after I'd paid my taxes. Should I ignore it, or should I contact the IRS to declare the income? What's the best course of action?

I worked off the books in a bar before I had my green card and didn't fill out a W9 or file a 1099. The bar contacted me about incorrect W9 information after I'd paid my taxes. Should I ignore it, or should I contact the IRS to declare the income? What's the best course of action?

Robert James, 20+ years of experience in IRS matters
Answered on October 07,2023

The general rule is all income in the US is taxable unless specifically excluded by law. Even when you don't have a work permit you are supposed to report the income on your tax returns. If you amend to add the income and pay the taxes you owe on that income that looks better.

Generally you don't have to amend if you just forgot to include a small amount of income, but if you are applying for naturalization you are supposed to demonstrate "good moral character" which includes filing accurate tax returns.

Because no taxes were withheld from that pay, you'll owe Social Security and Medicare taxes in addition to any income taxes. People who file under the table income usually report it as Self-employment income even though it really should be W-2 income.

You can probably go back into your tax software and amend to add this income pretty easily.

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