Mods, please lock.

[HomeBrewerDude]

So your friend, at the age of 16, identified a legal loophole that noone else has seemed to find. Nor has the tax code concerning this loop hole changed for the last 16 years.

More likely your friend is a criminal in more than just tax evasion.

 

[SoylentGreen]

I call shenanigans on this thread!

 

[rahvin]

Originally posted by: PAB

Originally posted by: Dezign

Originally posted by: Millennium
Oh BTW, you realize if you turn him in your are entitled to a certain percentage of the backtaxes he owes.

:Q:Q:Q:Q:Q:Q

Whoa. Wasn't aware of that. How does that work?

Peace,
Dezign

Its been around for a while. You get 10% of what he owes as a reward IIRC.

-PAB

Without reading the IRS form it's my recollection that the reward can be as high as 20%. Simply get a tape recording of him admitting what he has done and give it to the IRS. Expect him to spend some serious time in jail and be broke the rest of his life.

 

[Storm]

A lot of restaurants evade taxes too.

 

[kranky]

I see no problem with turning the guy in for the 10%. He seems to enjoy the fruits of free enterprise, he shouldn't be surprised when someone else does the same. He knows he's cheating and apparently he's OK with you and everyone else paying taxes to make up for him.

Keep in mind that the the more information you can provide to the IRS, the more the reward. In other words, you can't just turn in a list of 10,000 people and if you made a lucky guess you get the money. You have to give them enough information to give them a reason to investigate.

 

[Cuda1447]

Originally posted by: Dezign

Originally posted by: Millennium
Oh BTW, you realize if you turn him in your are entitled to a certain percentage of the backtaxes he owes.

:Q:Q:Q:Q:Q:Q

Whoa. Wasn't aware of that. How does that work?

Peace,
Dezign

Don't even do it. You may not agree with him, still don't turn him in. If he is your true friend, then just let him be, or perhaps mention something to him. If you turn him in for the reward you are just as greedy as him.


On a side note: If by chance he is doing this legally, then I admire him and commend him. Nice work shady fella.

 

[Grasshopper27]

Originally posted by: Dezign
I was talking with a friend last night, and was surprised to found out he "decided to stop paying taxes" when he was 16. He's extremely well off... a multi-millionaire who drives an Escalade, eats out every night, etc. He boasted about his businesses (some shady - buying/selling data, some legit - glass jewelry, etc.) and mentioned he'd found some loophole in legal jargon which allows him to not pay taxes. Don't get me wrong... he's worked for his money as hard as anyone else, but the fact he doesn't pay taxes on his earnings kinda irks me.

I'm sure someone else said this already, but...

It is illegal to not pay taxes in the United States. There is no legal loophole that allows this. You will see a number of e-mails about a so called "opt-out" system, rest assured it doesn't exist and they WILL put you in prison for this.

Almost all his transactions are cash only, so there's no paper trail.

So in other words, he is commiting fraud by not reporting income to the IRS.

He doesn't have a bank account because the last time he did, the IRS swept it (clear of the $9 and change in it at the time). He has anti-government/anti-war views, but is definitely enjoying the luxuries living in this country had to offer. I don't know... the whole thing really rubs me the wrong way, because my family, my friends and I all work hard, don't make nearly as much, and pay a ton of taxes... whereas this guy is living the high life, has plenty of money rolling in, yet doesn't pay taxes because he doesn't believe in it.

If it bothers you that much, give the IRS a call. People go to prison over stuff like this. One of my Mom's former CPAs went to prison for 3.5 years for underreporting client income. It is a felony, serious business...

Just wanted to get this off my chest... I don't want to be the b!tchy whistleblower because it's not my place, but it really annoys me that some people are able to get away with things like this while the rest of us pay our dues and pick up their slack.

Report the SOB, people like him mess up the system for all of us. This isn't being a tattle-tale, this is reporting a criminal that is costing the rest of us a lot of money.

Hopper

 

[vash]

Not paying taxes isn't as difficult as it may seem, but boasting about it will certainly cause a problem when it comes to the tax man. To avoid taxes, you could send all of your paycheck to a nonprofit organization and that all becomes a writeoff for you. That's not illegal, but I would find it pretty difficult to live in a house, pay for my bills, etc if I only expected to get a refund at the end of the year.

There are other ways to get around not claiming income, therefore, not paying taxes. Cash income/business is a very common method to help prevent income from being reported. How can the IRS claim you have income when you aren't working for anyone else but yourself and you don't have a savings account, showing history of transactions? By flaunting this fact, the IRS could certainly come down, take a look at what you're driving, what house you live-in, etc and start to inquire about the possiblity of what hasn't been paid.

I'm in favor of taxes/taxation. Sure, paying taxes suck, but how do we expect our government to function without paid people? Sure, you can argue that the government isn't using your money correctly or wisely, but then you should do something about it in order for them to use your money correctly.

vash

 

[Grasshopper27]

Originally posted by: Millennium
Oh BTW, you realize if you turn him in your are entitled to a certain percentage of the backtaxes he owes.

Doh! I forgot about that...

Hopper

 

[Grasshopper27]

Originally posted by: DrPizza
Isn't failure to pay taxes one of the easiest ways to put get someone in jail?
(Capone)

We have a winner!!!

Yep, that is how they catch a lot of criminals.

We don't have debtors prisions in this country, you cannot go to jail for not paying your credit cards, but the IRS can throw your bum in jail for not paying taxes.

Hopper

 

[Grasshopper27]

Originally posted by: vash
There are other ways to get around not claiming income, therefore, not paying taxes. Cash income/business is a very common method to help prevent income from being reported. How can the IRS claim you have income when you aren't working for anyone else but yourself and you don't have a savings account, showing history of transactions? By flaunting this fact, the IRS could certainly come down, take a look at what you're driving, what house you live-in, etc and start to inquire about the possiblity of what hasn't been paid.

That is how they got Capone...

They looked at his reported income, then what kind of house he lived in and then put it all in front of a jury and got a conviction.

Hopper

 

[FoBoT]

there is a difference between not filing an income tax return and not paying taxes

 

[DaWhim]

no worry, Bush is starving the IRS. last year, the probability that IRS check you is 1 out of 70; this year is 1 out of 100

 

[dman]

He's probably supporting terrorism.

 

[slycat]

Originally posted by: Dezign
I was talking with a friend last night, and was surprised to found out he "decided to stop paying taxes" when he was 16. He's extremely well off... a multi-millionaire who drives an Escalade, eats out every night, etc. He boasted about his businesses (some shady - buying/selling data, some legit - glass jewelry, etc.) and mentioned he'd found some loophole in legal jargon which allows him to not pay taxes. Don't get me wrong... he's worked for his money as hard as anyone else, but the fact he doesn't pay taxes on his earnings kinda irks me.

Almost all his transactions are cash only, so there's no paper trail. He also does a lot of international business, which he doesn't report. He doesn't have a bank account because the last time he did, the IRS swept it (clear of the $9 and change in it at the time). He has anti-government/anti-war views, but is definitely enjoying the luxuries living in this country had to offer. I don't know... the whole thing really rubs me the wrong way, because my family, my friends and I all work hard, don't make nearly as much, and pay a ton of taxes... whereas this guy is living the high life, has plenty of money rolling in, yet doesn't pay taxes because he doesn't believe in it.

Just wanted to get this off my chest... I don't want to be the b!tchy whistleblower because it's not my place, but it really annoys me that some people are able to get away with things like this while the rest of us pay our dues and pick up their slack.

Peace,
Dezign

EDIT: Grammar.

get used to it...he ain't the first, last and certainly not the only one.

 

[Ausm]

Originally posted by: Evadman
ya, there is this big loop hole that sais if you disagree with the gov, you do not have to pay taxes.

Red Foxx and John Travolta could attest to that

Ausm

 

[spaceman]

Dezigns wild wild world.

 

[LordMaul]

Ever read Rich Dad, Poor Dad?

 

[Zebo]

A german guy in my hometown who owned an auto shop did'nt files taxes for ~25 years. The IRS billed him 1.2M, he got a lawyer, got it reduced to around 400K and no jail time. I assume cuz he had the money to pay the fine. Anyway this and keeping two sets of books is very common in all cash businesses..

 

[jemcam]

I think you can get a reward (a percentage of the amount collected) from the IRS for being a stoolie. Might be worth checking out!

 

[shopbruin]

there are ways to get around it for sure... i never did it but some cash based businesses can do it..

 

[jemcam]

Originally posted by: TallBill
they wont be able to find out how much he makes though.

Maybe not exactly, but if he's driving an Escalade and living the life of luxury, they'll estimate what they think he's taking in, and it won't be to his advantage to let the IRS estimate his income.


Hell, pm me his name, address and whatever you've got, I'll turn the SOB in, I pay close to $30,000 a year on taxes. I sure as hell could have used that money, but I'm a moral and ethical person.

 

[BooGiMaN]

i take it they tax u on the 10% you get for turnin him in?

 

[Storm]

Originally posted by: ncircle
Dezigns wild wild world.

Yea I dunno....

What else has Dezign brought up lately?

1.) Crazy ex boyfriend whose a marine or in the military
2.) Father who created a program that is supposedly copied by Microsoft
3.) Simone Koo - enough said
4.) Friend's brother who steals from family
5.) Now Rich friend whose a multi-millionaire that evades taxes

Am I missing anything?

Thats a lot of drama... man I dunno

 

[Bignate603]

Originally posted by: BooGiMaN
i take it they tax u on the 10% you get for turnin him in?

Actually, I was thinking about that, lol.

People like this piss me off. Just like all those environmental groups that still use the things they protest. They still drive around. They still buy consumer products, they still use the electricity. They don't realize what they are demanding. Yes, there are ways to reduce impact on the environment but if you just put a halt on everything they want just wait and see how long till they start whining.