my father hasn't paid taxes in years. now, he is putting his business in my name and said that his reasoning

Question

is because he would be responsible and pay the taxes if it were in my name. should i be worried about this at all? should i trust him? what could i do about this? what could happen to me if the taxes weren't payed?

Answer 1

in my experience a family member is the absolute worst type of person to get involved in any type of financial agreement especially with only a hand shake to answer your question YES be worried be cautious. if you're over 18 yrs old anything that happens with the IRS is going to fall on your shoulders, try getting a-hold of a tax attorney to get the details of what could happen. good luck.

Answer 2

Tell him that you won't have anything to do with this UNTIL he has come clean with the IRS and paid ALL of his back taxes.

Sorry to be so blunt, but if your father hasn't paid taxes in years he is NOT an honest and trustworthy man. If you have any involvement in his business activities, YOU could also be held responsible for any tax debts.

Although the government may not be able to go after you for any taxes that were due prior to your becoming involved with the business they certainly can and will go after you for any that come due once your name is on the business.

IMHO, you do NOT need this type of aggravation and should NOT have ANY involvement in your father's business and finances until he has made his peace with the IRS. And even then, YOU should take over the management of the finances and ensure that all taxes are paid on time henceforth. If you're not willing to make that committment to the business, tell your father, "Thanks, Dad, but no thanks!"

Answer 3

ask a lawyer.
If it is a sole proprietorship and then you become the owner then it is really a new business. You father will still owe the taxes and the business will be yours and YOU will be responsible for the taxes from the date of transfer.
but ASK A LAWYER that is familiar with your local business laws.
If the company is a LLC or Corporation, there are more steps to take in transferring control of a business and I would make sure taxes are paid BEFORE you had control over it.
As far as your father, if the taxes would you your responsibility after the transfer, I would make sure they are paid first. Family and money does not mix.

Answer 4

Of course you should be worried. You could go to jail for fraud...or HE could..they will see that he has done it and then put it in your name and audit him.