<prompt> Human: Backstory: I had to make an account under my sisters name because of my questionable business past history I was banned from PayPal in 2007. Obviously her SSN is tied to the account and bank acct. IRS sent a certified letter today. Everything is claiming its hers but I need to claim it as mine. Some of this I did withdraw and put into my Chase bank account and paid federal taxes on it in 2013. Problems I need answers to:1. What forms to do I need to fill out claiming this money is 100 mine and not my sisters to get out of any mess?2. Is there anyway I can consider all of the business expenses and I operated at a loss and owe less than 11k ?3. I feel like I am getting doubled taxes here. How do I prove what came out of the PayPal total and I deposited into my Chase bank acct and already have been taxed on it?4. fml. Is the best solution here to work out something w IRS and do installment payments of 500m for 23 months once everything is claimed under my SSN?Thanks!  <response>: Dear PaypalFuckUpUGH:Get ready to enjoy the IRS hold music and all its glory as you partake in HOURS, IF NOT DAYS of your life on HOLD. Sorry I phrased that as a joke, it is not. Ive dealt with some back taxes and payments this year and on average, its a 1 hr wait time on hold. To add insult to injury, Ive talked to about 10 different agents over the past year, with only 3 being helpful. Bad idea to not file, terrible move to put your sister in this situation. Now that that is out of the way, 11k isnt FML level.1 get a CPA to handle how to claim the cash as yours. Did you work for your sister as a 1099 contractor? again, consult with and pay for a CPA.2 have the CPA amend both your and your sisters returns for said years.3 at this point, you can have the CPA handle the calls to the IRS...but I would handle the calls myself and save the CPA costs.Once the amended returns hit the IRS, it will probably take 30-90 days to run through their system, be re-calculated or calculated, and then notices back to you and your sister.As soon as you get underway with the CPA: 1. take the day off.2. call the IRS. The prompts are something like, 1 1 4 2 SSN 1 5. 3. listen to really, really crappy hold music for 1 hr keep in mind, setting up payment arrangement calls ARE lower priority. Ive called and the system has said, due to high call volume, we are not accepting these types of calls right now...and it hangs up4. explain the agent that your amended returns are filed by YOUR CPA...ask to setup a payment plan. They may suggest waiting until the returns are through the system. Pay as much as you can, as fast as you can...the penalties ARE TERRIBLE.Your sister will likely have to do the same thing.Hopefully you only have to make 1-2 calls. Good luck. To respond to your 3 comment: Yea, you should get double taxed...you are on the line of having committed tax fraud and identity theft. Good work! 