Advancing from "under the table" work

Discussion in 'Lawn Mowing' started by Pizpoppa, Nov 19, 2000.

  1. Pizpoppa

    Pizpoppa LawnSite Member
    Posts: 19

    My business is rapidly beginning to increase and for next season I think I am going to have to become more professional like offer contracts and whatever else entails being more "professional." For example, do you guys with many accounts pay taxes? Well, I am sure you do, but how do you go about making this transition from under-the-table to professional? And is it possible to have over 50 accounts and still be UTT? Thanks
     
  2. SJR Lawncare

    SJR Lawncare LawnSite Senior Member
    Posts: 250

    If you want to be "Professional" you would pay your taxes like the rest of us professionals, besides eventually you will get caught evading taxes.
     
  3. Scraper

    Scraper LawnSite Bronze Member
    Posts: 1,656

    Sore topic!!! Once you start paying taxes you'll see why we "Professionals" have to charge what we do...glad you are from the other side of town.

    P.S. 5 or 50 accounts...you should be paying taxes. No excuse!

    PPS Seeing as you are in Langhorne...you should be collecting state sales tax on nearly all services as well...which I'm sure you aren't!
     
  4. geogunn

    geogunn LawnSite Gold Member
    from TN
    Posts: 3,010

    you may find the transition easier than you think.

    let me run this example by you. let's suppose you are a lawn care company that runs "under-the -table" (your words, not mine).

    and there is another company out there that is "professional", read that to mean: conducts his/her operation legally.

    let's further suppose that the "professional" guy is getting tired of busting his keester to make a living while the other guy rakes in huge profits from failing to report federal income tax, state income tax, fails to report sales tax-both state and local. you get the picture.

    finally, after having a belly full of this illegal operator scamming everybody, he calls the IRS RAT LINE and spills the beans. a 1-800 number, by the way.

    as the IRS is a very big agency with lots of things going on for them, it takes them a couple of years to get around to the complaint. but finally, the "under-the-table" guy gets a notice of audit. they can go back three or more years I think.

    an audit? hey no problemo, right? just take all your records down there in a shoe box and dump 'em on the auditors desk and tell him to figure it out, right?

    let's end the story here. suffice it to say that these people are trained to ferret out unpaid tax. very important: THEY AUDIT THE TAXPAYER, NOT THE RETURN! THEY WILL ASK YOU FOR ALL OF YOUR RECORDS, STATEMENTS, YOU HAVE ALREADY LISTED YOUR TOTAL INCOME FOR THE REPORTING YEARS AND THEY WILL GO IN AND ATTEMPT TO SHOW THAT YOUR LIFESTYLE HAS EXCEEDED YOUR INCOME. THEY CAN HAVE THE BANK REPRODUCE A RECORD OF EVERY TRANSACTION THAT HAS GONE THROUGH THE SYSTEM. HAVE YOU EVER TAKEN A CHECK TO THE HOMEOWNERS OWN BANK TO CASH, ONLY TO FIND THAT YOU HAD TO PUT A DRIVERS LICENCE NUMBER ON IT TO CASH IT? ever wonder why they care? HHMMMM?

    once they establish that you have unreported income, they will ask for your client list.

    so, sorry for being so long here. just giving a little food for thought. so to answer your question:

    you may find the transition easier than you think.

    have a great day.

    GEO
     
  5. Vandora Lawn & Landscape

    Vandora Lawn & Landscape LawnSite Senior Member
    Posts: 386

    Is it really necessary to keep pounding home the fact the being under the table is evil. We KNOW that! Its obvious he wants to go legit. HELP HIM! Don't just tell him how evil he is. My advice would Pizoppa would be to contact your lawyer and accountant and discuss it with them. They should be able to set you straight tax wise and help you find insurance and the other exepenses you'll need to pay.
     
  6. Charles

    Charles Moderator Staff Member
    Posts: 7,952

    Interesting article in sundays paper Nov, 19.
    By David cay johnston
    NY time news service
    SOME SMALL COMPANIES STOP PAYING TAXES
    Edited by me.
    Lake Shasta california,
    Al thompson has 28 employees in his manufacturing company. Told his employees that only foriegn companies need to pay taxes. Said his employees and his business didnt need to pay taxes.
    NO soocial security or medicare taxes either. The company no longer withholding taxes from their paycheck or telling the IRS how much money they made.
    This company is among a tiny but growing and flamboyant fringe of american business. They are even bragging about this on their web sites and talk radio.
    The irs has not only failed to go after these businesses but has in some cases given refunds after they claimed the had paid taxes they didnt owe in the past.
    At least 23 business have made the decision not to pay taxes public. They are trying to persuade 1000s to join them.
    IRS blames congress for cutting their funding and their ability to go after theses companies with limited rescources.
    The artical goes on....
     
  7. Scraper

    Scraper LawnSite Bronze Member
    Posts: 1,656

    Yes...it is NECESSARY! And if you read his post he asked in the last sentence whether it is possible to have over 50 accounts and still be under the table! It is people like this that give us all a bad rap! Anyone on here can search and find all the information they need to be legit! Poor question if you ask me and a very SORE topic!!! Maybe you could e-mail him personally and help him out. If not...I hope the flaming continues and he sees fit to make everything legit...including this years receipts!

     
  8. awm

    awm LawnSite Gold Member
    Posts: 3,354

    This guy is just at a certainpoint in
    progression of his buisiness.
    I ll bet 90 percent go from a few mows
    to something you got to do right.
    Nows the time to get it right though
    so contact a good tax man or accountant
    and let him get you straitened out.
    Gonna hurt a little but then you want
    have to worry.
     
  9. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    "as the IRS is a very big agency with lots of things going on for them, it takes them a couple of years to get around to the complaint. but finally, the "under-the-table" guy gets a notice of audit. they can go back three or more years I think. "

    If it is for fraud, or failure to report income by 50% or more, or failure to file a return, the statute of limitations is FOREVER...

     
  10. Scraper

    Scraper LawnSite Bronze Member
    Posts: 1,656

    All right Vandora...what do you think now? The guy even advertises!

    http://www.geocities.com/pizpoppa/prices.html


    $25/hour? ARGHHHHHHHHHHHHH@!!!!!!!!!!!!! Thank GOD he's in Bucks County!

    I think Stone ahs a word for these...don't worry...I won't say it! ;)


    [Edited by Scraper on 11-20-2000 at 06:10 PM]
     

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