My ex-husband has a website and is running a business under another name but is not registered with the county or the state. Can he be reported to the IRS for tax fraud?
2006-12-04 12:34:01 · 3 answers · asked by mother of 3 2 in Business & Finance ➔ Taxes ➔ United States
He has two other DBA's that are registered with Wayne County but not one with this company. I have searched through county and state data bases for a DBA and LLC and have found nothing. Not only that but he is objecting to the amount of child support he has to pay and he did not turn in all of his information. Better yet, he claims to be a recovering alcoholic and drug abuser and i understand they are suppose to be honest. I think he is in for a world of hurt. This is all in the state of Michigan and in the county of Wayne
2006-12-04 14:01:51 · update #1
That depends on the county and state in which he resides. Some counties require that you do this kind of business under a "DBA" (doing business as). You would most likely have to file with the city for a DBA. For example, Fred Smith could be running a dry cleaning service under "Dry Clean Now." But the name of the business is actually "Fred Smith dba Dry Clean Now".
The IRS will require your husband to do business under some tax identification number (TIN). If he is a sole proprietor he could use his SSN and report the business on a Schedule C which would be included with his year income tax return. If your husband has any employees he will be required to obtain a federal employer ID number, and most likely a state employer ID number, depending on the state.
There are other ways he could do business, such as a corporation.
I agree that the IRS is most concerned about the payment of tax that is due, regardless of how you ex-husband sets up his business.
I hope this helps.
2006-12-04 13:44:41 · answer #1 · answered by dazed&confused 3 · 0⤊ 0⤋
formerly you talk to the revenues, verify your data. Accusing an accountant of fraud/dishonesty is a super deal because it casts doubt on each set of bills/tax returns etc that that enterprise has ever been in touch in. in case you have misunderstood the region, you would be able to desire to be unfairly inflicting them and all their different shoppers a super style of grief (as nicely as making your self seem stupid). My strategies: a million. i assume you will understand in case you had formed a constrained enterprise... yet are you effective that's what they're asking? Self-employed persons can produce bills showing their enterprise earnings and expenditure - possibly this is what the revenues are asking for? 2. As already reported, you may prepare a income and loss account and a stability sheet extremely actually. you will desire to try this standard, and notice how a tactics incorrect that declare of £12k costs particularly is. 3. do no longer touch the revenues till you have a minimum of a undemanding concept of what the region is. in case you assert something to them that seems to be erroneous it destroys your credibility. a minimum of it makes you appear to be a twit. lots extra useful to postpone the communication till you realize what's what. 4. in case you exceeded each little thing over on your accountant, the two get him to do the bills for you or get all your receipts, certificates and information decrease back from him. 4a. Heck, call him now, this is poetic justice that this is ten previous 4 on a Friday - why would desire to he spend the weekend sitting in the mild at the same time as you difficulty approximately it? enable him spend the weekend in the workplace sorting those bills out at the same time as you bypass and function a barbecue. that's what you pay him for. additionally, if think ofyou've have been given the incorrect end of the stick, he can set your strategies at relax. 5. As hinted at in 3, do no longer misinform the revenues. they have enamel. "Please leave out, the dogs ate it" won't get you everywhere - it won't lead them to bypass away, and you will only annoy them that's some thing you will experience sorry approximately in case you do finally end up in the region of having to throw your self on their mercy. stable success - my significant suggestion is call your accountant, and do it this afternoon.
2016-10-14 00:41:26 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Is he paying the quarterly federal income tax on his sales? Yes...then file, pay an he's OK. No.....he needs to file at the end of the year and there will probably be interest and penalty charges.
Is he required to pay state income tax on his business income? Same concerns apply.
2006-12-04 13:27:33 · answer #3 · answered by iraq51 7 · 0⤊ 0⤋