I am on disability and I rent rooms in my home - one of the tenants told the IRS that she paid me $500 a month for 2 years, what should I do?

I am thinking that you did not include the rental income on your tax returns for the 2 year period or that you didn't even file returns, because this is a "file your past due tax return" email question?

If you didn't include or file a return for the years in questions, now would be the time to do so. If you did file a return and forgot to include the rental income - file a 1040-X (Amended Return) ASAP.

If you provided more services other then rental of the room, such as laundry, meals, etc, then you would put the income on a Schedule C. Profit and Loss from Business

If you only rented the room with no services included - then you would include the income on a Schedule E - Supplemental Income and Loss OMB No. 1545-0074
(Form 1040) (From rental real estate, royalties, partnerships,
S corporations, estates, trusts, REMICs, etc.)

If you have never filed either of these forms, you may want to think about an experienced tax professional. Especially if you rented more than one room at a time. You will need to divide out the utility cost, insurance and a number of other expenses to arrive at a more correct tax return.

for exact clarification of tax codes, visit irs.gov

We are available to prepare past due tax returns that include Schedule C or Schedule E.