Rat or competitor?

Discussion in 'Lawn Mowing' started by crew, Nov 21, 2001.

  1. crew

    crew LawnSite Member
    Messages: 163

    Last year around this time, I met a guy who was interested in adding lawn care to his snow plowing service. He was not going to do the work himself. He was going to hire 1 or 2 guys. I answered all his questions honestly and thoroughly.
    Lo and behold at the start of this season I see a trailer with his name on it and sure as heck, he's in the lawn buisness.
    Ran into him last week and asked how things were going etc. Before long we are talking price and his seem way low. I give him the usual "you should quit screwing yourself and me and raise your prices to a respectable level because you can" line.
    Bfore long he says something to the effect of "I'd never make it if i had to pay workers comp and witholding on my 2 guys".

    So the question is; do I turn this guy in as a tax cheat? I Hope the argument for this is obvious. On the other hand, he is a little guy (40 accts.-tops) and almost insignificant in the big picture.
    I feel compelled to turn him in because I was so forthright in answering his questions and I'm certain we talked about the stuff hes cheating on.

    P.S. - The guy was driving a brand new Yukon and is by no streach of the imagination, hurting .

    Any similar experiences or thoughts are welcome.
  2. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    I think it's best to be able to live with yourself and look in the mirror and know that you DIDN'T turn someone in. He will get his eventually, they always do.

    I have wanted to turn in bunches of guys for installing lawn sprinkler systems without a contractor's license but I never have because I have plenty of work and the people they are working for can't afford me anyway. That is how I justify it to myself anyway!!!

    What comes around goes around.
  3. Green Care

    Green Care LawnSite Senior Member
    Messages: 530

    There's no need to go that far,with this guy.
    I'm sure he,s not in your way.
  4. groundsguy1970

    groundsguy1970 Banned
    Messages: 166

    If he starts to bid against your holdings in any way politely tell him you will light him up for pissing on your tree.:)

  5. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    don't let him rent space in your head ..... goes around ....comes around
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    if this guy is like me, he will "evolve". a couple years ago i myself didnt believe in insurance, pesticide license, etc. but, soon enough i realized i couldnt run a proffesional service without being legit. he will probably end up legit or out of the biz, i wouldnt turn him in.
  7. Richard Martin

    Richard Martin LawnSite Fanatic
    Messages: 14,699

    Your example guy is a lightweight. One of my local competitors and good friend does this:

    1: Has never filed with the state for personal property tax (required in Maryland) on his business.
    2: Still owes both state and federal taxes for '99.
    3: Never filed state and federal returns or make estimated payments for '00 and '01.
    4: Sells plant and other materials at a profit when doing landscape installations and doesn't collect or turn in sales tax.
    5: Sells firewood without the required permit and doesn't collect or turn in sales tax.
    6: Does landscaping without the required Maryland State Home Improvement Commision license.
    7: Does tree trimming without the required Maryland Department Of Natural Resources tree trimming license.
    8: Regularly switches license plates between vehicles because he has 3 licensed vehicles and 2 unlicensed vehicles.
    9: No workers comp.
    10: Has never filled out any paperwork, either federal or state, regarding employees.

    The hammer will fall on this guy eventually and when it does it's gonna squash him flat to the ground.

    MATTHEW LawnSite Senior Member
    from NE OHIO
    Messages: 665

    Around here, they'll turn you in if someone notices you have "non-comm" plates on the truck. There was a post a while back. I think it was titled something like- If you cant beat 'em join 'em or something like that. Well this guy tried to turn someone in and the Gov't official said they don't have the recources to chase these guys around, and they basically did'nt care. What gives? Guys like us who spend the first $1,000-$5,000 on required expenses every month look like idiots to the law breakers.:mad:
  9. GrassMaster

    GrassMaster Senior Member
    Messages: 447


    Just try to Help him all you can to make it a Level Playing Field.

    You have nothing to gain by Turning him in, as far as a Tax Cheat, at one time or another Everybody has Cheated on Taxes? Right?

    I would do Time before I Turn anybody in? What do you really Gain from it. Is he the Only one that would Suffer or Does he have family? Lot more involved than just him?

    Help him Understand How to Make More Money & You have a Friend for Life!
  10. Runner

    Runner LawnSite Fanatic
    Messages: 13,497

    and please....don't tell him about Lawnsite.:rolleyes:

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