I filed my taxes in 2005 (w-2s), now months after I filed i had received a 1099 from a job I had already received a w-2 from (which is correct). I received a return that year for the w-2s i claimed(never filed 1099). I never filed the 1099 because i was 18 and scared I would owe a lot of my money i didnt have at the time. Now in 2008 I want to settle this because they say I owe them close to 2k with interest and i dont want true irs problems.
1. Can I file a 1040x and use write offs because I know I used more than the $5,000 i didnt claim for expenses, over the 6 months I was an independent contractor.
2. If so, I dont have the receipts from 2005 but have an idea of my regular expenses and mileage from 2005; Can i go do the 1040x online and feel safe that i wont be audited for writing off the $5,000.
3. Will I still have to pay penalties for wanting to file 3 years later.
4. And if anyone has any advice I never thought of or have been in a similar situation, please any help is needed.
Thank you for any comments posted