Cheating the IRS - Openly & Confidently (bankruptcy, loans, deduction)
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Ugh its that time of year again. I hate doing taxes but I collect all my paperwork and do the best I can at presenting an accurate picture of my income and expenses.
Meanwhile as many in my small town of Rockport Texas know, there is a parolee ( for Misapplication of Fiduciary Funds and Perjury who has said in open court under oath that he only makes $12,500 per year for the past 20 years or so and files no income tax .
He is in bankruptcy with assets of over $1 milion in Real Estate and another million in Oil and Gas leases. he owns two waterfront homes with acreage , a limo , truck and a Mercedes. US Trustee alleges that he he has transferred over $500,000 from different bank accounts often in one month. On Match. com he listed his income in the highest category over $150,000 per year. His bankruptcy case is 12-20423 in the Southern District of Texas.
City Data will not let me list his name but anyone who contacts me with an email can have documentation of all the above.
I have made an IRS report with documentation but they ignore it.
Anyway I should be doing my own taxes but when I do - I think about how this guy blatantly thumbs his nose at the IRS and gets away with it.
Is the trick just in not filing Tax Returns? Perhaps one can make hundreds of thousands a year from land and oil and gas and simply get away with it by not entering their name and number in in the system. The rest of us are suckers.
So you just want to rat him out? I don't understand this instinct. You don't really know his true financial picture and whether he is being audited, if he is on a payment plan, if he is being prosecuted...If he is in debt and is purchasing on credit. You don't know if he is being supported by a large inheritance.
The trick is, to get the most out of your taxes through deductions and credits that you are eligible to claim. You must be willing to sign away your life in order to game the system because when they find out, that's what they will take first.
They've been running a story here about a guy with a listed income of over $500,000 last year. He has filed hundreds and hundreds of lawsuits against literally everyone, all filed for free as "indigent." He was put on a list that he can't file anymore and he continues to file using various lawyers names. No one seems concerned, nor that with that yearly income, he still filed for and receives federal disability.
There does seem to be a level where the truly brazen do win.
I don't really know? LOL Perhaps its you who doesn't know? I've been involved in several of his cases.
Umm IF HE SAYS UNDER OATH that he hasn't filed federal income taxes in many years (if ever) I don't think he is on any payment plan.
Yes there is more to it that meets the eye. He has cases against him for the fondling and firing of women employees over 40 years younger - but that is only relevant to your concern about "a ratting him out" - He believes he owns several politicians and when told he is breaking the law he is notorious for saying " Uless its ( inserts his name) Law, I don't want to hear about it.
Teh above is to satisfy YOUR concerns- the point of the thread is below
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The point of this thread is maybe if you never file you can get away with millions of dollars in non -salary income
and if you're bold enough the IRS may just stay away.
Well I would never do this - I'm just amazed that someone else has gotten away with it forever. One would figure his criminal record would raise a ref flag-- if not the limo and Mercedes.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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The IRS has limited resources, and what seems to be strange methods for determining who to audit. Many people are able to get away with this sort of thing, while others, making $50,000 get audited and fined for failure to list something like a cash prize that they won. Eventually they are likely to catch this guy, and the longer it takes the more he will have to pay in fines and back taxes. They do have a way to report such things, with an award:
An old friend of mine was an auditor for the IRS years ago and told me about an audit that he had recently completed. The guy had reported losses for several years, but when my friend arrived at the his home he discovered it was a mansion with a 5 or 7-car garage filled with exotic cars. He thought he'd found a real cheat.
He soon realized the guy hadn't made any money in years but was deep, deep in debt. He'd started out borrowing a little money for his "business", then went to a different bank and borrowed a little more. He used that to pay off the first bank early. He repeated the process over and over, each time borrowing more money and paying off the older, smaller debts. More banks, more and bigger loans = more money in his pockets. His credit was great because he always paid his loans early. What he was doing was illegal, but my friend couldn't turn him in as it's against the law (at least it was back then) for the IRS to report such illegal activities.
Your amount of assets means nothing. Net worth is assets minus liabilities. If your liabilities exceed your assets you really have nothing but a mess -- and probably a bankruptcy around the corner.
Likewise, your gross income may be millions, but your net income zero. Some people who don't file would be money ahead if they did.
An old friend of mine was an auditor for the IRS years ago and told me about an audit that he had recently completed. The guy had reported losses for several years, but when my friend arrived at the his home he discovered it was a mansion with a 5 or 7-car garage filled with exotic cars. He thought he'd found a real cheat.
He soon realized the guy hadn't made any money in years but was deep, deep in debt. He'd started out borrowing a little money for his "business", then went to a different bank and borrowed a little more. He used that to pay off the first bank early. He repeated the process over and over, each time borrowing more money and paying off the older, smaller debts. More banks, more and bigger loans = more money in his pockets. His credit was great because he always paid his loans early. What he was doing was illegal, but my friend couldn't turn him in as it's against the law (at least it was back then) for the IRS to report such illegal activities.
Your amount of assets means nothing. Net worth is assets minus liabilities. If your liabilities exceed your assets you really have nothing but a mess -- and probably a bankruptcy around the corner.
Likewise, your gross income may be millions, but your net income zero. Some people who don't file would be money ahead if they did.
Great post!!!
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