How does someone not pay taxes for 5, 6, 7 years, and then just get caught all of a sudden?
2007-05-01 10:34:37 · 4 answers · asked by Incorrectly Political 5 in Business & Finance ➔ Taxes ➔ United States
Several different ways.1)Just by chance, IRS performs random audits and catches some of those no gooders. 2) They act on tips from people. Now they don't go after every person that they get tips on. Usually they like to stick to self-employed people with lots of income and lots of receipts or just the plain rich who would actually have the means to actually pay back the money. 3) They catch the people themselves. For example if you fail to report income from a W-2 you received, chances are high that the IRS will catch it. IRS also receives a copy of any W-2's that are sent to you and when they see it isn't on your return, they send you a nice letter.
2007-05-01 15:41:16 · answer #1 · answered by Fool in the Rain 6 · 0⤊ 0⤋
Lots of ways. Their income ends up getting reported somewhere. Somebody reports them to the IRS. The IRS just stumbles on it. Those are just a few of many.
2007-05-01 17:40:37 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
If you know someone who is committing fraud against the IRS you can report them yourself. hey we all pay taxes correctly, why should someone else not have to???
You are also entitled to a percentage if the IRS recovers tax money from your information.
This is the form used to report someone:
http://www.irs.gov/pub/irs-pdf/f3949a.pdf
2007-05-01 17:53:23 · answer #3 · answered by Joseph T 4 · 0⤊ 0⤋
Alot of renters do not pay taxes, especially apartment renters, then they buy houses or land and then they end up having to pay the taxes along with penalties and interest,which can add up to alot.
2007-05-01 17:50:44 · answer #4 · answered by classy1 2 · 0⤊ 2⤋