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Ok, I know someone that hasn't filed income taxes with the IRS in over 12+ years.

They have no bills in their name, use only cash, and no credit cards.

The only thing they have is a vehicle in their name.

Something's came up recently and suddenly and they now are going to come clean........"supposedly".

How in the heck does someone get away with this to begin with..........
 

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How in the heck does someone get away with this to begin with..........
The underground economy. Lots of services like landscapers, contractors, etc operate under the radar with or without illegal aliens. Dope dealers do too.
 

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The underground economy. Lots of services like landscapers, contractors, etc operate under the radar with or without illegal aliens. Dope dealers do too.
And there is also the barter system. Many people don't realize they are still responsible for taxes on the value of the barter.
 

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Just think of the Billions upon Billions of $$$$$ spent on purchases over the Internet. Most people I'm sure don't pay taxes on there purchases, other than myself. Supposed to if not, that's cheating
 

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I wouldn't waste money on an attorney, just see a good accountant. Years ago when I was working in public accounting I had a guy come in that had been working on the pipeline in Alaska. The first year he was in the field when his taxes were due and he never filed that year. In succeeding years he didn't know what to do, so he never filed for eight consecutive years. Finally he came in and I caught up his returns and with penalties he still had a huge refund coming back due to significant with holdings each year.

If the guy has been avoiding, they might not be so kind to him.
 

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Just think of the Billions upon Billions of $$$$$ spent on purchases over the Internet. Most people I'm sure don't pay taxes on there purchases, other than myself. Supposed to if not, that's cheating
On another forum, some members poked a 'lil fun at me when I said that I paid taxes on my Amazon purchases. I believe it is a civic duty.
I also don't have to worry if they decide to hunt down & penalize those that haven't been paying for 'net purchases.
 

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GEEZ, applaud the guy! Big corps have been moving offices offshore for decades avoiding billions if not trillions in taxes...the federal reserve has been lending your tax dollars to Banks more or less interest free for years( try to get that rate from them yourself...lol)....spend a few bucks, under freedom of information act you can get a copy of the gao yearly accounting...it's appalling what the gov spends cash on...check the expenditures of your politicians over and above their exorbitant salary..... So one little guy beat the system for a few bucks for a few years...kudos to him
 

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I wouldn't waste money on an attorney, just see a good accountant.
I would think either one would be good for the job. The original question was how did the guy's buddy get away without filing any taxes for all of those 12+ years.

He did not say sales taxes, just income taxes.
 

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The original question was how did the guy's buddy get away without filing any taxes for all of those 12+ years.
Easy!......if? he never filed a return and he was never sent a W-2 or 1099.
 

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Ok, I know someone that hasn't filed income taxes with the IRS in over 12+ years.

They have no bills in their name, use only cash, and no credit cards.

The only thing they have is a vehicle in their name.

Something's came up recently and suddenly and they now are going to come clean........"supposedly".

How in the heck does someone get away with this to begin with..........

Simple. If he's getting paid in cash and living strictly on cash there's probably no one filing W2's, 1099's, or any other records with the IRS. The have no record that he has a more than the 5k threshold for filing, so they have no reason to look into it.
Now if he's getting a paycheck and paying withholding taxes and just not filing he's a idiot. :lol: In that scenario he's probably paying more than he owes and after 3 years that's all just donated to the IRS if you don't file. Of course they still can come after you if you owe after 3 years, but normally they don't go back more than 7 years.
 

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Buddy had that. Wife worked as a nanny cash on the table and to the I r s for all purposes didn't exist. Her uh, well income could not be proved come mortgage time so he looted his 401k to get a down payment for their house and then could not back fill in time and got hammered.
 

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Why would he have to loot his 401 k.. we just didn't include what my wife didn't get 1099 for as a waitress. So she made 6000 a year. Did not make any difference in mortgage rate or down payments
 

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Get a good accountant first, then if he recommends a lawyer get one. A good tax accountant knows the laws and what the IRS can and cannot do. I'm not saying he did no wrong and there won't be any legal problems, but coming clean is better sooner than later.

In my own experience in dealing with the IRS (I had a huge tax bill one year I couldn't afford) they were totally professional, never called, no nasty letters in the mail, etc. they were actually the best creditor I have ever had to pay back...even got a thank you letter at the end of my installment plan.
 

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Discussion Starter #16
This person isn't a drug dealer or flying under the radar by getting paid in cash.

They work a regular job and get a regular paycheck every week from a reputable company.

The "Biggest" problem is that they started claiming "9" on their paycheck at the start of this whole mess to get some extra money.

So they've only had the minimum tax taken out of their check for all these years.

They got so used to it they just never change it back. Now a scorned ex family member is threatening to turn them in.

Amazingly this person didn't exactly keep this a secret from some in their circle of family and coworkers.......DUMB

They figured that after a few years of not hearing anything from the IRS they were "Good To Go".

Hell, every year at W2 time we would joke about me having to come visit them in the pokey.......
 

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This person isn't a drug dealer or flying under the radar by getting paid in cash.

They work a regular job and get a regular paycheck every week from a reputable company.

The "Biggest" problem is that they started claiming "9" on their paycheck at the start of this whole mess to get some extra money.

So they've only had the minimum tax taken out of their check for all these years.

They got so used to it they just never change it back. Now a scorned ex family member is threatening to turn them in.

Amazingly this person didn't exactly keep this a secret from some in their circle of family and coworkers.......DUMB

They figured that after a few years of not hearing anything from the IRS they were "Good To Go".

Hell, every year at W2 time we would joke about me having to come visit them in the pokey.......
That has to be emotionally draining on him. Once you start doing something like that, it's hard to stop. The penalty could be rough, I hope he is able to work things out. He needs to get legal advice.
Once you tell someone a secret, it is no longer secret.
 

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On another forum, some members poked a 'lil fun at me when I said that I paid taxes on my Amazon purchases. I believe it is a civic duty.
I also don't have to worry if they decide to hunt down & penalize those that haven't been paying for 'net purchases.
If they didn't offer the tax when checking out then it's their problem, not mine.
 
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