At Law Offices of Fernando D. Vargas we work with people from all types of financial backgrounds who are dealing with a variety of legal and economic issues – including clients who are self-employed. When it comes to proving lost earnings in a personal injury case, it is generally fairly easy for a W-2 employee but it can be more complicated for self-employed clients.
Read on to learn more about how we can help you prove your economic losses after being injured in a car accident or other type of accident. Then contact us at 909-982-0707 for your free legal consultation.
Documentation is Required to Prove Your Lost Earnings
The goal is to prove that you suffered a financial loss as the result of the at-fault party acting negligently or recklessly. We can do those with a variety of documents, including those that show you lost profits, revenue, or earnings. For example, you pay have a P&L statement that shows your quarterly earnings. You may have receipts that show you made less after the accident than before.
In some cases, your tax returns may be the best option. You can see over the years what your average expected income should be and can then show how much less you made than this expected average. Note that it is not always wise to bring your tax return into the case and that there are both federal and state laws that limit the ability of the defendant’s attorney to gain access to your tax return on their own.
You Will Not Be Required to Turn Over Your Tax Returns
If there is some reason that your tax returns will not show the true losses you have suffered then you may not want the defendant’s attorney to have access to it. the good news is that the California Supreme Court has long held that a person cannot be forced to provide a copy of their tax return, whether state or federal, unless they are being charged with something related to tax enforcement.
Self-Generated Documents Are Helpful but Often Not Enough
Ideally you would be able to provide us with 1099s for the year before the accident and the year of the accident. If you have profit and loss statements generated by your accounting software that can be helpful too. Even if you only have your earnings tracked in an Excel spreadsheet, this can be helpful.
However, note that these self-generated documents can come under fire because they can be easily altered. For this reason, tax returns may be more helpful because you are required by law to be truthful on them. Your personal injury attorney will be able to assess your tax documents and any other evidence you have of your income. We can then advise on how to best proceed. Contact Law Offices of Fernando D. Vargas at 909-982-0707 to get started.
