Pierce County personal injury lawyers can explain how to handle unreported income when seeking damages in your case. As part of the damages in your personal injury case after a motor vehicle accident, you will be entitled to compensation for your injuries, damage to property, and any economic loss from being unable to work. It is not difficult to show how much income you have lost from regular paychecks. But if you have earned income and it was never reported to the Internal Revenue Service, it can add a complication in showing what you have lost. You do not want to lie under oath, but do not want to admit to not filing taxes.
Unreported Income If the Person Died in the Accident
If there was a car accident and the person who did not report the income to the IRS died, then there will be no method of punishing a deceased person. However, your attorney should check into whether or not the spouse could be subject to an IRS investigation. If there is no danger of the family being prosecuted, your attorney can appeal to the jury about the lifestyle changes due to the accident. Asking the following questions can benefit toward this end:
- What did you pay for your mortgage or rent annually?
- Did the person who died make these payments?
- Did you have tuition expenses?
- Were these payments made by the decedent?
- Did your family take a vacation this year?
- How much did it cost?
- Was this paid by the decedent?
Unreported Income If The Person Is Still Alive
The situation can be easier if the person who did not report the income survived the accident. It is not necessary to avoid asking for full damages due to what might have been an oversight. Simply amending the past tax returns can fix the problem. The IRS will take the late returns and back taxes, often with interest and penalties.
Call Experienced Pierce County Personal Injury Lawyers
If you have questions about unreported income in a personal injury case, call (253) 770-0808 to speak to Pierce County personal injury lawyers at Greene & Lloyd, PLLC today.