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The IRS will never contact you about unpaid taxes over the phone and demand payment. If there is a real problem with your tax returns, you will get a letter. If a lawsuit has been filed against you, you will never find out about it over the phone. If you get one of these calls, it is a scam 100 percent of the time.
Hey Jennifer. It's a bit risky for them to claim your wages on a tax credit because the IRS may double check those expenses and see no W-2 for you or a Schedule H filed by the family. You should have had taxes withheld from you all year and the family should go back and correct this mistake so you can file a proper tax return. If the family is 100% against this and cannot be talked into it, the only way you can file your taxes is to file a Form 4852 (substitute for a W-2) to account for your wages.