Check your sources BEFORE you act!

June --

IT consultant. Thank you for taking my comment.

I have been an independent contractor for 7 years.

The problem I have now is that I have been trying to purchase a house and the person helping with my loan advised me to amend my 2007 taxes and take no deductions and even had me add some income to it to make the numbers for the loan as my AGI was low due to the deductions.

He also advised me to file 2008 with no deductions and add some income to that as well.

Now my problem is that I have not received financing and am stuck with a huge tax liability as I did not take my deductions.

I am not sure where to go now.

Any help is appreciated.

Vipul
Vienna, VA


Dear Vipul,

As I alert indies all the time: Know the source of the info you use. Even though they are both trades people, would I ask my plumber to fix an electrical problem? Did the person helping you with the loan know anything about taxes? Did you ask him?

Inflating income to get a federal loan is fraud. Yup. It's really bad.

You need to go to a legitimate tax professional experienced with self-employed taxes and have her file amended tax returns for 2007 and 2008.

In my book, Self-employed Tax Solutions, I warn about just such a situation. Sammy Segar the clueless CPA advises the musician Miles Mingus just as your loan guy advised you.

Best,
June