How to report business for not paying taxes?
Posted: October 12, 2009 at 5:20 am | Tags: Business Taxes, business-credit, Credit Card Payments, Good Friend, paying-taxes, small-business, Stupid Comments
I have a friend who owns a small business. She takes credit card payments and charges tax on the items sold. I recently found out she has not done taxes for the business or herself, in years. She had the store for about 6 yrs, the first year she filed taxes but not since then. I dont think this is right. How do I report this? And what would happen to her?
Do not write stupid comments about how I’m not a good friend for reporting her. READ THE QUESTION!
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Your state sales tax office would be very interested in this information. Likewise, IRS.
What kind of friend are you? I don’t think it is right of you to try to get your “friend” in trouble. If your friend is cheating on her taxes, she will eventually get caught. The IRS or Tax authorities are not stupid, they will figure it out eventually. If you are a real friend , you should encourage your friend to do the right thing or at least warn her of the consequences of her action.
You can probably find the answer to your question at the IRS website under Compliance &Enforcement under IRS Resources on the left side of the page. There are awards for such information and your friend is probably facing fines and penalties.
How Do You Report Suspected Tax Fraud Activity?
If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by completing Form 3949-A. You may fill out Form 3949-A online – - print it and mail it to:
Internal Revenue Service
Fresno, CA 93888
If you do not wish to use Form 3949-A, you may send a letter to the address above. Please include the following information, if available:
Name and address of the person you are reporting
The taxpayer identification number (social security number for an individual or employer identification number for a business)
A brief description of the alleged violation, including how you became aware of or obtained the information
The years involved
The estimated dollar amount of any unreported income
Your name, address and daytime telephone number
Although you are not required to identify yourself, it is helpful to do so. Your identity can be kept confidential.
Frequently Asked Questions – 1.13 IRS Procedures: Reporting Fraud
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