How do you report someone running a business that isn't registered as a business.?

Question

I know someone that is actually running a business from their home and making pretty good money, but not paying any taxes and is not a registered business. How can this be reported without giving a name?

Answer 1

Tell the IRS!

You can fill in Form 3949-A (they love to get forms), or you can just call your local office. See the links below for details.

If you report them in writing, then you have back-up evidence to collect your reward. Rewards can be as high as 10% of the uncollected tax. Apply for your reward with Form 211 (linked below). You might just have yourself a gravy train there!

Your name and address is not supposed to be supplied to the taxpayer's defense attorneys if you request anonymity. If you are worried about reprisals, I'd skip the reward and be 100% anonymous.

-- Caveat: How do you know s/he's not reporting the income? If you are not 100% postive, be aware that you will be putting this person through a terrible trauma (a full audit). The IRS treats people who are suspected of lying on their returns as guilty until proven innocent, not the other way around. Be sure you have good cause before taking such a drastic action.

Answer 2

Depending on the type of business and the location, they might or might not be required to register as a business. But they are required to pay taxes on their income. You can report it to the IRS.

Answer 3

why do you want to ruin someone else's life? Is what they are doing hurting you in anyway, shape, or form?

Are they running a brothel or a drug ring? If not how do you know for sure that they aren't paying taxes? They could be sending in quarterly statements that reflect their expenses outweighing their income.

Unless you are good friends with this person you don't know for sure that they're aren't paying taxes and if you are friends with them I'm guessing they'll figure out you ratted them out.

Karma is a ***** and it comes around to everyone...if that person is doing something wrong, it'll catch up to them without you having to snitch on them.

Answer 4

contact the IRS they will be very interrested . . having a registered business ??? do you mean a DBA on file with the county clerk for the business name ???

I've run a business without a DBA, payments were made in my name and I reported my earnings on my income tax. ??

Answer 5

call the local city or county government. they will not reveal your name. I know! somebody reported me and I could not pry that name out of them no matter what i did. they said it would discourage people from reporting so they do not reveal it, but they may require you to identify yourself to the agnecy that talkes the report. For BBB, they do nothing ever except collect dues from businesses. they will probably try to get him to join BBB so they can get dues.

Answer 6

Contact the Better Business Bureau in your area. Go to their website: http://www.bbb.org/ On the top right is a link to click to "Locate Bureau".

Answer 7

Would you want someone to snitch on you if you were making tax free money? This sounds like petty revenge. Unless you live next to a whorehouse, then you are totally justified.

Answer 8

you can give anonymous tips to the Better Business Bureau and they will investigate it. You can also contact the chamber of commerce in your area and do the same thing.

Answer 9

Either you love the IRS, or you envy this guy. I think you should leave him alone, but if you have to do something to spite him at least make it beneficial for yourself.....blackmail?

Answer 10

You can find self-calculating IRS business forms at this site:

http://www.pdftax.com/