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Like some others on this site, and as some of you may know, I'm a cop full time. Keep that in mind as I tell this story.

Last month I arrested a local LCO. I won't go into the details about the offense, but it was pretty bad. I've never met the guy before and he has no idea about my "side employment" as an LCO myself.

I arrive in court last Friday and speak with our prosecutor about the case. He tells me that this guy is going to plead guilty to the charges but that he has bigger problems. Just then, a woman comes in the door and introduces herself to me as she whips out a badge. It turns out that she is from the Department of Taxation and was investigating the guy I had arrested.

It turns out that this guy has not paid taxes on his business since 1999, has not paid income tax since 2000, and was collecting sales tax from customers without remitting it to the State of Ohio. This LCO has no idea that this tax agent is sitting in the court room as he is called by the bailiff. As this guy is being questioned by the Judge about his employment prior to sentencing, he says (as a matter of public record), that he has 95 customers and 3 employees after being in business for 7 years. I turn to see the tax agent taking notes. She arrests him as soon as the judge passes sentence.

On her way out, I asked her how she picked up the case. She said that her agency received three calls from customers that he had in the past. He must have really ticked some people off. I don't use the term "Scrub" often, but this guy would fit the definition, for sure.

B
 

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Discussion Starter · #3 ·
State of Ohio tax agent. She said that there are only 25 of them. He was charged with a 4th degree felony and two 1st degree misdemeanors.
 

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My wife has an uncle who lost his lucrative heating/air business and hasn't worked in over 20 years because he got busted. He knows that most of what he would earn would go to pay fines and back taxes, so now he lives in a hovel and bums off family.

Years ago, one of my father's sub-contractors in the building business arrived on site all pale and pasty. I hadn't seen him in a long time and I asked my father why he was so pale when normally these guys are leathery tan. He'd been in prison for not depositing payroll taxes!

These enforcement pushes tend to come in bunches as they look to make examples of people, so beware scrubby scrub scrubs.
 

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I am glad they came and got him. I pay all my taxes, don't hide a thing. I am glad that I make enough money to pay taxes on. If you don't hide anything, you never have to look over your shoulder.

I have been in law enforecement since 1987, and this is my second year in the lawncare business.
 

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GOOD POST BATTAGS.

Makes me want to puke every quarter when I'm filing all the tax paperwork, knowing that 50% are pocketing it all and not paying any taxes because...(fill in the excuse... it's not THAT MUCH money...I don't want to pay an accountant...it's my second job, etc.)

Additionally, since I do mulch and fertilizer, I have to keep track of the amount of product and collect sales tax and file forms MONTHLY and submit a check. Talk about a PITA.

When I buy mulch at the mulch store, they look at me like I'm an idiot because I am "tax exempt" at their store but have to collect (on the ENTIRE COST of the project - that way INDIANA gets more money). I asked them once, "Doesn't everyone (that is commercial) do this?" NO was their answer. I was the only one. AND THIS IS A BIG MULCH OUTFIT. Pissed me off! Well at least I can sleep at night and know that if someone looks at me with a microscope I will have the paper trail to prove I'm OK.

Mike
 

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BRUCEC32

LMAO at "so beware scrubby scrub scrubs."

I guess you haven't had the "sensitivity training" yet. You know "scrubby scrub scrubs" have feelings TOO!

Mike
 

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Grassbusterslawn-

Im in Maryland and my CPA had told me that I should be careful reselling items (such as mulch, etc) due to the sales tax issue. I was told that as long as I didnt do a lot of it and I didnt mark up the product I would be ok. Have you ever heard that?
 

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Jimbo,
They get screwy in MD. If you pay tax when you buy it and don't mark it up to the consumer you are probably ok. The way I understand it is this (for me):

If it is new, tax. Repair, no tax.

You can email good ol' Donnie Shafer's office and they can help you.

My example was for a fence. I repair a fence - no tax labor if I paid tax on material. New fence - labor is taxed.

Joe
 

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Originally posted by GrassBustersLawn
GOOD POST BATTAGS.

When I buy mulch at the mulch store, they look at me like I'm an idiot because I am "tax exempt" at their store but have to collect (on the ENTIRE COST of the project - that way INDIANA gets more money).

GrassBusters, Pardon my ignorance, but I was under the understanding that one only needs to declare the cost of the product (mulch) to the client. The client pays the taxes, paid to the LCO, on the product. I thought the service (almost all services, but in this case putting down mulch) is not taxable in this state. And if it is, why is grass maint. not taxable?

Thank you.
 

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Originally posted by GrassBustersLawn
GOOD POST BATTAGS.

Makes me want to puke every quarter when I'm filing all the tax paperwork, knowing that 50% are pocketing it all and not paying any taxes because...(fill in the excuse... it's not THAT MUCH money...I don't want to pay an accountant...it's my second job, etc.)

Additionally, since I do mulch and fertilizer, I have to keep track of the amount of product and collect sales tax and file forms MONTHLY and submit a check. Talk about a PITA.

When I buy mulch at the mulch store, they look at me like I'm an idiot because I am "tax exempt" at their store but have to collect (on the ENTIRE COST of the project - that way INDIANA gets more money). I asked them once, "Doesn't everyone (that is commercial) do this?" NO was their answer. I was the only one. AND THIS IS A BIG MULCH OUTFIT. Pissed me off! Well at least I can sleep at night and know that if someone looks at me with a microscope I will have the paper trail to prove I'm OK.

Mike
I had always thought that if you paid sales tax when you bought it you didn't have to collect when you resold it. Perhaps it varies by state or I was mistaken.
 

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Hey battags, can I ask where you are from. See if you can send that state tax agent this way so I can find some lowballing frauds to report. I'm in Euclid in Cuyahoga County. If it's not to much to ask, can I ask who you took down? thanks
 
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