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I'd probably have to report several hundred people if I did.
Around here, it's quite common for people from MA with a 6.25% sales tax, to drive up to NH (0% sales tax) to make their big appliance/electronics purchases, and then come back to MA with them. Supposed to be reported as "use tax" when you do your taxes.
I don't know anyone who ever does this....and the state of MA always reports some insanely low number each year from the people that actually do.
You're right and I would bet so many don't even realize that this is tax fraud. It makes me think that no ones taxes are ever completely right and if the IRS wants to catch you in something they can find it. To answer the question, no I wouldn't report anyone simply because I don't think anyones taxes are 100 percent right and the government does its share of cheating all of us in the first place. Does anyone here think all of the tax rules are always fair?
The previous owner of our home rented it out to a family that apparently rarely paid their bills. We got collection calls for years after we moved in even though it was our phone number (I guess it was linked to the address). One day a man called and identified himself as from the IRS. I told him we weren't the so-and-so's and that I didn't know where they moved to, but I did know Mr. So-and-so's father and gave his name and address to the IRS guy.
It has been ten years and we still get random mail, past-due notices... for them.
I wouldn't consider that to be reporting someone to the IRS. They were already turned in long before you were involved. We have a similar thing happen when the IRS turned up looking for an estranged low life family member.
I don't have any proof, but one person has told me of another person cheating. Supposedly, this guy runs a restaurant and everyone pays in cash so he doesn't have to report it. He has some nice vehicles.
I think that is dangerous and will catch up with him.
The IRS is looking for "big fish" who cheat big-time.
The IRS is not likely to spend much time following up on the guy who doesn't declare a hundred bucks proceeds from a garage sale.
Not true.
They go after small businesses that are easy prey. At least that has been my experience with them.
IMHO Lerner and other higher ups that have committed crimes should be prosecuted to the MAXIMUM. She should have HILLARY as a cellie.
I think its worth differentiating between someone that doesn't report $300 from selling some stuff at the yard sale, or goes to a lower tax state to buy a Refrigerator, and someone that systematically and purposefully plans to ditch their obligations. I could care less about the garage sale going unreported or the appliance, but if I knew of something where someone was actively conspiring to avoid paying their fair share, I might feel differently.
You're right and I would bet so many don't even realize that this is tax fraud. It makes me think that no ones taxes are ever completely right and if the IRS wants to catch you in something they can find it. To answer the question, no I wouldn't report anyone simply because I don't think anyones taxes are 100 percent right and the government does its share of cheating all of us in the first place. Does anyone here think all of the tax rules are always fair?
Technically, it's not fraud until you fail to report use tax to the home state at the appropriate time.
And no, the tax code is not fair. Why would it be allowable for a Corporation to deduct the cost of insuring its employees, but an individual cannot do the same if they pay for their own health insurance?
Why would a self-employed owner be subject to individual tax and both sides of the self-employment tax because they own their own business, but a company that forms an ESOP through its profit sharing plan does not have to pay any income tax?
Why can companies choose the area they domicile in and take advantage of those tax rates with business done elsewhere, yet individuals cannot?
Why can companies depreciate a work vehicle, but a vehicle used by an individual to get to work cannot be taxed?
There are thousands of examples. Personally, I'd love to see limited liability companies have to pay a tax on debt levels and have most items subject to VAT and do away with income tax. After all, if we're looking to create jobs, why are employees taxed and capital allowed to depreciate? If leveraged buy-outs and financial groups that do little more than acquire companies, leverage them to the hilt and then sell them to fail are bad for an economy....why make interest deductions an attractive incentive?
Still, while it's not fair, it is the law. Personally I want to follow the law...which is likely why my I'm in the 90th percentile each year for taxes paid by income level. I can easily say I did my part.
If I was looking at receiving 15%-30% of $10+ million, as mentioned on the IRS website, then sure I'd go for it. I guess that begs the question of whether or the award is taxable? Haha!
The IRS is not going to bother with the little things, so there would be no point in wasting time to report it.
There was a similar thread a while back. I posted this without a single reply. Figured no one cared.
I know an employer that pays all her employees 1099 as independent contractors. She pays them 50% cash and 50% legit. The benefits to her are obvious. The catch for workers is, now they claim low income so they receive Government subsidized housing - food stamps - and cash assistance for children, free healthcare, along with a few other things I can't think of right now. These are workers who earn approximately 60K a year. They are doing pretty good with all that cash and Government assistance.
Looks like the IRS doesn't care if it's not over 200K a year or 2 million dollar cheater. Irritates the hell out of me.
This is an industry that is nationwide with probably as many stores nationally as there are 7-11's or gas stations in every state. Do the math. The IRS tax fraud going on has got to be in the Billions (combined) annually.
Think I would need someone smarter than me with the right connections to be effective. So I don't say anything, just feel a little guilty for allowing it to continue at the cost for everyone. Proof is easy.
I can't imagine having the detailed information about someone else's taxes that I would need in order to turn them in.
I am fond of telling people that it's OK to make a mistake, that's why they have amended forms. It is never OK to commit fraud.
The Ohio income tax form has a provision to pay sales tax on out of state and online purchases. If you do not declare any sales taxes, there is a box to check that you did not make any untaxed purchases. I tell people that if you check that box, they only have to prove you bought one item without paying sales tax to show that you have filed a false return. I keep a spreadsheet to track my online purchases so that my tax form is correct.
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