Not paying taxes. I have questions .

[vash]

I have a friend. Fairly close friend. We hunt and fish together, but he moved.

He makes good money. He blew my head clean off when he told me he hadn’t filed taxes in years! Never thought it was a problem because nobody complained about taxes more than this guy.

This is zero percent my business. I don’t lose any sleep.

But he recently got married.
Isn’t his wife now on the hook as well?
They are hoping to buy a house. This is not possible right? The paperwork will shine a light on it?
Those IRS correction companies you hear advertised on the radio? Those BS?


I meander thru life avoiding troubles. I can’t fathom the implications of blowing off taxes year after year.

[onewhippedpuppy]

Seems like that would be hard to get away with for very long, but who knows? The government isn’t exactly known for being efficient. I’m jealous either way, until he gets caught!

[Cajundaddy]

Technically that is tax evasion which means prison if/when you get caught. Ask Wesley Snipes how it worked out for him. For me, the cost/benefit analysis looks rather grim.

https://popculture.com/celebrity/news/celebrities-who-went-to-prison-tax-evasion/

[vash]

I vaguely recall having to give my bank two years of taxes return papers when I bought a house.

Right?

[Seahawk]

I am not certain I understand: If he is self-employed using cash and carry, I could see it.

Maybe even as a 1099.

But as an employee of a company, any company, evading taxes is extremely difficult.

If I was him, I would get smart on: https://app.optimataxrelief.com/first-step/?t=160&utm_source=MSN&utm_medium=ppc&utm_campaign=tax-help&adgroup=tax-help&device_category=desktop&utm_term=where%20to%20get%20help%20with%20taxes&ad=77790660472318&network=search&matchtype=e&cq_src=bing_ads&cq_cmp=tax-help&cq_con=tax-help&cq_term=where%20to%20get%20help%20with%20taxes&cq_med=&cq_net=o&cq_plt=bp&msclkid=7abbfabd54491c4fe2ac9d43ca00b0d4

[911 Rod]

Not paying taxes in which way?
You get into enough trouble not paying your own taxes.
Want to really piss the IRIS off? Collect taxes and keep it for yourself.

[vash]

He gets a foreign paycheck. I think he’s supposed to 10-99 everything.

[cabmandone]

Originally Posted by vash

I have a friend. Fairly close friend. We hunt and fish together, but he moved.

He makes good money. He blew my head clean off when he told me he hadn’t filed taxes in years! Never thought it was a problem because nobody complained about taxes more than this guy.

This is zero percent my business. I don’t lose any sleep.

But he recently got married.
Isn’t his wife now on the hook as well?
They are hoping to buy a house. This is not possible right? The paperwork will shine a light on it?
Those IRS correction companies you hear advertised on the radio? Those BS?


I meander thru life avoiding troubles. I can’t fathom the implications of blowing off taxes year after year.

Not a recipient of W2 or 1099's? I don't see how he isn't already been busted. Christ! the State of Ohio put me in collections for a $75 tax bill that was satisfied. Maybe I need to stop paying taxes?

[masraum]

I dated a girl in college, and her parents hadn't filed taxes in years (I think it had been either 8 or 10 years). They had 5 kids. The father's theory was that they didn't owe taxes (would be owed a refund) so it didn't really matter if/when they filed. I dropped it, but my mind was reeling.

I have no idea if it ever bit them in the ass, but I'm sure eventually it did. And the idea of not getting a refund owed you in a timely manner (before the IRS comes up with a reason to not pay), is insane.

[masraum]

Originally Posted by vash

He gets a foreign paycheck. I think he’s supposed to 10-99 everything.

I've got to assume that's what has allowed him to slip through the cracks so far. Eventually, it'll catch up to him and bite him in the azz.

[cabmandone]

Originally Posted by vash

He gets a foreign paycheck. I think he’s supposed to 10-99 everything.

If he's receiving money the person or company making that payment is supposed to file a 1099. Sounds to me like both he and whomever he's being paid by aren't playing by the law.

[Seahawk]

Originally Posted by vash

He gets a foreign paycheck. I think he’s supposed to 10-99 everything.

That is even worse, or even worse to the 2nd power depending on the country.

He is either an employee or a 1099, either way the foreign company has the receipts should this get ugly...your friend needs a check up form the neck up. Seriously.

BTW, if his wife knows, and the IRS can prove that, buckle-up.

[wdfifteen]

Originally Posted by 911 Rod

Want to really piss the IRIS off? Collect taxes and keep it for yourself.

A boss I had years ago sort of did this. He withheld taxes from my check, and on April 14th he wrote me a check for the amount. "You can file or not, up to you."

[The Synergizer]

IRS doesn't catch everyone. But, people catch themselves. Doing things you got away with when single, or carefree can completely ruin your future life plans when there is a significant change - like meeting a spouse, wanting to get married, buy a home... And then, when that's extremely difficult suddenly the little IRS man shows up on your door to top it all off. Not to mention your state also...

A lot of people don't file returns, but have had wages taxed so that may not matter, although they could be screwing themselves if they would have got a refund...

If he's 1099, never figured out his taxes, he might have a small problem.

[Rot 911]

When him, and his wife, when she finds this out, get divorced I’m sure her attorney will file this:

Taxpayers file Form 8857 to request relief from tax liability, plus related penalties and interest, when they believe only their spouse or former spouse should be held responsible for all or part of the tax.

[911boost]

Holy crap!

I would never be able to sleep. I am about as square as it comes to paying taxes. I use an Accountant and have never taken a short cut, or tired to cheat on them at all. There were years I could have bought a nice Honda Accord for the checks I was sending in.

This year I get a decent amount back.

Hopefully your friend doesnt get busted.

[3rd_gear_Ted]

I know Americans (like me) who worked in the Maquiladora zone by the border for Toyota, Caterpillar & Intel, Motorola etc.
We worked in MX, lived in the both places but got paid in MX. We own homes on both sides of the border and all the usual stuff.
1099 is required for anything above $10K being brought across the border, trickle, trickle is the secret.

[masraum]

Originally Posted by 911boost

Holy crap!

I would never be able to sleep. I am about as square as it comes to paying taxes. I use an Accountant and have never taken a short cut, or tired to cheat on them at all. There were years I could have bought a nice Honda Accord for the checks I was sending in.

This year I get a decent amount back.

Hopefully your friend doesnt get busted.

Seems it's more a "when" than an "if", but I suppose it's possible that folks could slip through the cracks.

I wonder if there's any sort of timeline after which the IRS snoozed and lost. I assume there is not.

According to the American Bar Association, the IRS will usually audit the "last 3 years" but in certain circumstances can go back an additional 3 years (6 total).
https://www.americanbar.org/groups/business_law/resources/business-law-today/2017-august/irs-can-audit-for-three-years/
But

No Return or Fraudulent Return.
What if you never file a return or file a fraudulent one? The IRS has no time limit if you never file a return or if it can prove civil or criminal fraud. If you file a return, can the IRS ever claim that your return didn’t count so that the statute of limitations never starts to run? The answer is “yes.” If you don’t sign your return, the IRS does not consider it a valid tax return. That means the three years can never start to run.

[onewhippedpuppy]

My wife’s sister and her family live in Qatar, her husband works oil and gas as a 1099. I know they don’t pay US taxes unless they spend more than XX days in the USA (can’t recall the number), but now I’m curious if they have to file any sort of paperwork with the IRS? I’ll ask.

[gregpark]

Originally Posted by masraum

Seems it's more a "when" than an "if", but I suppose it's possible that folks could slip through the cracks.

I wonder if there's any sort of timeline after which the IRS snoozed and lost. I assume there is not.

According to the American Bar Association, the IRS will usually audit the "last 3 years" but in certain circumstances can go back an additional 3 years (6 total).
https://www.americanbar.org/groups/business_law/resources/business-law-today/2017-august/irs-can-audit-for-three-years/
But

It's a question of if. It's a voluntary system. The IRS audits thousands but millions don't file. The agency relies on scare tactics for compliance but generally runs it like a business. If there are assets and enough money to go after they could pursue. Many have told them to "take me to court" and never heard from them again. If one hasn't filed for years and goes to the IRS before they come to him it would be advantageous. The IRS has agencies within and you don't want the collection guys coming for you. A non filer could simply backfile claiming minimal earnings and get away with it a long a there's no 1099 paper trail