Skyler got an unwanted blast from her past this week, as Ted showed up and said the business was getting audited. This could get Skyler in trouble because she signed all the paperwork, but she helped Ted avoid the initial problem by playing VERY dumb with an IRS agent.

Still, if Ted doesn't pay $617,000 in taxes owed, the IRS might come after both again. He's broke, though, so Skyler might have to use some of the drug money.

Elsewhere:

- Walt gave Mike a heads-up that Hank was on to the warehouse and was planning a visit.

- Jesse had dinner with Gus and had the situation explained to him: under pressure from the cartel (they earlier killed one of his men), Gus agreed to give them 50% of his business and the blue meth. He asked Jesse if he could teach the production of it to the Mexicans.

- Jesse then asked Walt for advice, but Walt was pissed. He knew Jesse had seen Gus because he bugged his car. He went off on his former protege about lying and about not killing Gus and the episode ended with these two in a brawl and Jesse saying he never wanted to see Walt again.