Need some Advice.

Discussion in 'Lawn Mowing' started by -, Feb 5, 2001.

  1. Guest
    Posts: 0

    My brother and I started in the lawn business last year and I have handled the accounting and finances. I have kept excellent records and work with a great CPA. We take full advantage of all write-offs and such but declare 100% of our earnings, its just worth the peace of mind for me.

    We are now planning to split the business into two seperate LCO's. I will continue to handle my accounting the same way but he is planning to run 1/4 of his income under the table, not all cash income, but checks written personally to him he plans to cash at the counter of the customer's bank. I have warned him against this, with the rational that he will eventually get caught. But I can't tell him by what means. By what means does the IRS track these funds or do they? I am still against this and need proof to persuade my otherwise well-intended brother and partner. I have looked up info at http://www.irs.gov and multiple SOHO web sites with no luck. Thanks in advance for the help.
     
  2. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    The only way to get caught is by getting audited. Meaning that some people will get away with this, but if caught it could lead to imprisonment and loss of business. The penalty out ways the reward.
     
  3. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    If he ever get audited they could catch him if they really desired. When they get your drivers lic. # and thumb print on the check its in the computer if the IRS ever went looking.
     
  4. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    As desirable as it may be, you gotta try and do it by the books. I know it pisses some people off when everyone else screws the government and your doing it by the books, but you would think that a guy could sleep a little better at night with a clean conscience. No worrys of getting caught. Seems like an awful lot to throw away if you get caught. It might just be easier to rob a bank to get money then to waste time trying to run a business if you want qiuck easy money. It sounds like you two have a pretty decent business going so far and you're paying the bills, why screw it up. Just my thoughts, good luck either way.
    Just a quick little story, I'll make it fast. A guy I know owned and ran a autobody shop. Made good money, gooooooood money. Lots of cash jobs, it was like a joke, everybody new him and his ways. Retired early, 45 yrs. old, sold the business, just does more odd jobs now for fun and a little extra money, cash naturally. Well his daughter took ill, got sick. Not really sure what's with her, doctors can't really say, kinda like she just can't function in society. She now is taken care of by her father and partially the state. Some people make the statement that, if there is a GOD, maybe certain dishonest people get what they deserve. Do you get what I'm saying, without trying to be some religious freak. I just think alot of people get what they deserve. Maybe so, maybe not. I guess I just take pride in myself in being honest. Again, good luck with your brothers choice.
     
  5. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Call me stupid or paranoid, but I don't think you should have posted that here. You never do know who is actually reading this stuff.

    I understand your brother is only thinking of doing this, so no harm done, but some things are better left unsaid.


     
  6. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Dangit Jodi, you said all that needed to be said. Here I go ramblin' on for ten minutes and you had the perfect comment. I gotta go to bed, obviously my brain is already sleeping!
     
  7. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    :) Randy.

    Nah, you might as well stay up a bit longer. It's ok. You can admit it. Lawnsite can become addicting at times.
     
  8. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    One more reply before getting to far off track here, I would hate to see you moderators come down on me. I have never been on a computer before I got this one four months ago never had to use one, just at work for paint formulas but then I used the same few areas day in and day out. Anyways, my wife always gives me crap about being addicted to this thing and this site and calls me a "computer geek" now, it's kinda funny. I think she's being beat out by this thing, I won't let her know though.LOL



    Randy
     
  9. MJ

    MJ LawnSite Senior Member
    Posts: 312

    Don't know for sure, but I've heard the main method of catching this kind of stuff is comparing what you declare as income to your lifestyle. Hard to buy a $1m house on an income of $16,000. Also to look at your bank account, checking account, etc and compare to declared income. Seems to me, that most companies it would be too time consuming too keep straight what was declared, not declared etc compared to the tax money you'd save. Also, if you had a job on the books as completed and paid, but couldn't show a cooresponding bank deposit they'd have you. Just some thoughts.

    Mick
     
  10. TJLC

    TJLC LawnSite Bronze Member
    Posts: 1,308

    I never could never understand how people can get away with this. My checks are made out to my business name. They go in my business account. Period. I go strickly by the book. I don't want to have to look over my shoulder. It's just not worth it to me. Heck, dummy me I record cash as income! Maybe I'm too honest, I don't know.
     

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