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How does the IRS find out?

Discussion in 'Business Operations' started by 1brilord, Nov 25, 2004.

  1. 1brilord

    1brilord LawnSite Member
    Posts: 17

    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?
  2. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502


    When they audit another company and find that they paid taxes to you, and you dont claim that tax you get nailed..
  3. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

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

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

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

  5. Jackman

    Jackman LawnSite Member
    from Zone
    Posts: 231

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

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    Big brother is always watching.
  7. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    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!
  8. JCW-G

    JCW-G LawnSite Member
    Posts: 48

    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.
  9. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    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.
  10. crawdad

    crawdad LawnSite Bronze Member
    Posts: 1,939

    They find out by reading threads like this one...

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