How does the IRS find out?

[1brilord]

This may be a very broad question, but how does the IRS find out you are not paying taxes? What are the ways they can find out? I had a friend that was running a business under the table and the IRS found out about it?

[alpine692003]

Easy,

When they audit another company and find that they paid taxes to you, and you dont claim that tax you get nailed..

[out4now]

Can't wait to see Bobby's response to this one.

[olderthandirt]

This may be a very broad question, but how does the IRS find out you are not paying taxes? What are the ways they can find out? I had a friend that was running a business under the table and the IRS found out about it?
You p!ss off a legit biz and they drop a dime on you :D

Mac

[Jackman]

You p!ss off a legit biz and they drop a dime on you :D

Mac

You got it,,,,or you have a pissed customer or girlfriend or exwife or any number of things..................

[Mo Green]

Big brother is always watching.

[K.Carothers]

Its like the movie Superman when richard prier pulls in to his parking lot at work in a ferrari. Don't make yourself out to be the one everyone see's.-low profile!

[JCW-G]

The IRS is part of the government,you can't hide anything from them and expect them to never find-out, since the government mandates the banks to record all checks that have been cashed.

[Richard Martin]

The IRS does a rather large number of random audits. If you are unlucky enough your name will come up for an audit for no reason what-so-ever.

There are also red flags that will trigger an audit. States that have a personal property tax make this easier for them. Say you live in North Carolina and you work at McDonalds for $13,000 a year. On the side you're doing $10,000 a year in lawn work and you take some of that money and buy a 4 wheeler. The PPT man comes along and sees the new 4 wheeler and assesses you a tax on it. A computer program in the tax office flags that you are able to buy expensive new toys on a $13,000 income while making the payments on a new double wide. The state calls you in for a audit and finds problems. Guess the name of the first federal agency the state will notify.

[crawdad]

This may be a very broad question, but how does the IRS find out you are not paying taxes? What are the ways they can find out? I had a friend that was running a business under the table and the IRS found out about it?
They find out by reading threads like this one...
http://www.lawnsite.com/showthread.php?t=89313&page=1&pp=10

[arborist-28]

you receive checks and have a bank account ...is another way ...

[snippy]

If the tax department audited me they would probably feel so sorry for me afterwards that they would pass the hat around at the office and have a collection to help me out :(

[bobbygedd]

i agree with mac 100%. and will also add: do not leave papertrails ex: accepting checks made out to cash. i see guys do this all the time. they think they are safe. when in fact, you take this check to the bank, sign it, they take your drivers license #, then give you cash. DUHHHHHHH!!! i'll tell you who the safest people are. the people that have nothing are the safest. i know guys that hang out at the race track. if you hit a ticket that pays more than 600-1, you must fill out an irs form, show i.d before they will pay you. so, instead of doing this, you grab one of these morons, give him $50, and let him sign his life away. i know one guy in particular, who has signed more than half a million dollars worth of irs forms for gambling winning, and hasn't filed a tax return in over 20 yrs. but, he has nothing. zero, nada. never been audited either

[K.Carothers]

i agree with mac 100%. and will also add: do not leave papertrails ex: accepting checks made out to cash. i see guys do this all the time. they think they are safe. when in fact, you take this check to the bank, sign it, they take your drivers license #, then give you cash. DUHHHHHHH!!! i'll tell you who the safest people are. the people that have nothing are the safest. i know guys that hang out at the race track. if you hit a ticket that pays more than 600-1, you must fill out an irs form, show i.d before they will pay you. so, instead of doing this, you grab one of these morons, give him $50, and let him sign his life away. i know one guy in particular, who has signed more than half a million dollars worth of irs forms for gambling winning, and hasn't filed a tax return in over 20 yrs. but, he has nothing. zero, nada. never been audited either
bobby-you make me laugh :waving:

[walker-talker]

My dad (a retired IRS auditer) has always told me it those you don't file who need to worry the most and not those who make false claims on their returns.

I hope everyone that is not filing read this post!!!

[Envy Lawn Service]

I don't know, and I don't want to find out.

[bobbygedd]

My dad (a retired IRS auditer) has always told me it those you don't file who need to worry the most and not those who make false claims on their returns.

I hope everyone that is not filing read this post!!!
does a homeless man need to worry?

[DRM Ventures]

someone else said that boldly putting it in print on the internet is a good way to get caught........

I always find that amusing...

Derek

[K.Carothers]

does a homeless man need to worry?
It might be a bit hard delivering a certified letter between trash bin #3 and a basket full of whatever. I think they are safe from the IRS.

[K.Carothers]

The bottom line is character. It's what you do when nobody is looking. Be legit and spend your energy building an honest business. Pay what you owe and you will sleep better!

[tiedeman]

Big brother is always watching.

yup, like Wells said in "1984", Big Brother is watching. Good book by the way, I highly recommend people to read it

[JCW-G]

Richard Martin, I'm not conviced that a red flag is not triggered when a person cashes $50,000 in checks in a years time and only claims less than half or even a loss that the IRS doesn't notice and get triggered.Even if you don't deposit the check into an account and just take cash, they still know your business.
After I went out on my own,I learned that my former co-worker was cashing checks and just taking the cash instead of depositing into an account,he thought the checks were sent back to the owner once they were cashed.Which is true but,the bank is (by law) required to report by computer, all checks that are cashed for one person totaling over $15,000. He had well over $15,000 in checks made out to him but,claimed something like $2,500 or maybe a loss(I don't know and really don't care). It maybe a coincidence but,I seem to think that the government does get "triggered" along with random audits.



"It's your money. you paid for it". George W Bush, Lacross,Wis.,Oct. 18,2000

[Fantasy Lawns]

They go to forums like this n look fore questions like this ;->

[lsylvain]

There are many different ways the IRS gets people. Somewhere between 1 and 2% are audited randomly every year. Things such as changes in income trigger audits. People reporting you, (friends, family, enimies, your tax preparer.)

My advice, be an american, pay your taxes. That little piss ant amount of money you save by not paying your taxes isn't worth the trouble of sneaking around anyway. Plus, you look like a complete tool, when you tell a customer to write out the check to "cash," they will never respect you or your business.

[Groundcover Solutions]

Well as longs as you pay your taxes and run a legit company you should not have to worry. If you don't then you deserve to be audited and pay both what you owe and fines.

[Kelly's Landscaping]

I had a friend get reported for working under the table the reason he was reported was simple one the person did not like him but two the irs gives 10% of what it collects to the person that rats you out. In my friends case that was 10% of 200k. He still does not walk right after that sometimes they don't use lube.

[HOOLIE]

My dad (a retired IRS auditer) has always told me it those you don't file who need to worry the most and not those who make false claims on their returns.

I hope everyone that is not filing read this post!!!

Yea, I know a realtor who for some reason didn't file at all for 4 years. When Uncle Sam caught up to him he made him call him his Daddy. Guy had to sell his house to pay his back taxes & fines. Ouch!

[Frontier-Lawn]

This may be a very broad question, but how does the IRS find out you are not paying taxes? What are the ways they can find out? I had a friend that was running a business under the table and the IRS found out about it?

by you making a stupid move :waving: thats how u get caught

[Husky03]

I wonder how much the fines are on top of the taxes you were not paying if you get caught not paying taxes? ;)

[Carolina Cutter]

This may be a very broad question, but how does the IRS find out you are not paying taxes? What are the ways they can find out? I had a friend that was running a business under the table and the IRS found out about it?


If you will go ahead and get legit (I assume you are not) you will not have to worry about it. Why take the chances? If you are going to be a "business owner" then do what is required and don't try to take shortcuts.

[Carolina Cutter]

I had a friend get reported for working under the table the reason he was reported was simple one the person did not like him but two the irs gives 10% of what it collects to the person that rats you out. In my friends case that was 10% of 200k. He still does not walk right after that sometimes they don't use lube.


Hmmmmm possible new business venture....ratting on the scrubs...LOL. Just kidding....LOL

[Frontier-Lawn]

the irs gives 10% of what it collects to the person that rats you out

and if the rat does not report the$20,000 on next tax as income he's audited :p rite