An attorney from our Baltimore personal injury law firm can help you understand what happens if there is unreported income for the victim in a car accident.
Unreported Income and Damages After a Car Accident
If injuries are suffered in a car crash, then you will have the right to seek compensation not just for the injuries and damaged property, but for income that was lost due to an inability to work. In the event that you earn income that was not reported to the Internal Revenue Service, it can be a bit harder for your lawyer to prove what you lost.
Fatal Accidents and Unreported Income
If the accident was fatal, the deceased person can no longer be pursued by the IRS. Once it is discovered that there is not a danger of the family being prosecuted for unpaid taxes, the attorney can make arguments that center around lifestyle changes caused by the fatality. The following questions could be asked to prove this:
- How much did you pay for your mortgage or to rent your apartment?
- Was it the deceased who made the payments?
- Were there costs for tuition?
- Were those payments made by the deceased?
- Did you and your spouse take a vacation this year?
- Who paid for the vacation?
- Was it the decedent who paid for the vacation?
What If The Person Who Did Not Report Income Survives?
If the person survived the accident, then there might be fewer problems for unreported income. It is possible to amend previous tax returns. There might be penalties such as interest and fines, but if there is a significant amount available in damages after an accident, it is worth it.
Contact an Experienced Attorney from Our Baltimore Personal Injury Law Firm
If you have been in a car accident and are hesitant to pursue full damages from lost income that might not have been reported to the IRS, there are options. Call the Law Offices of James Lee Katz, P.A. at (443) 394-0900 for help from our Baltimore personal injury law firm.
