I know of someone in my family that is cheating the IRS. I am so tempted to report this person.?

Question

The true honest reason for wanting to report them is beacause they are very boustful as to their financial "status"

Answer 1

Unless you have first-hand knowledge and evidence to back up your allegations it's probably best to keep it to yourself. And if it's the type of thing that the IRS would be expected to know about it's very likely that they're already on the IRS radar screen or will be soon.

Keep in mind that many blowhards who brag about not paying taxes are either doing it legally OR are just making noise and aren't doing anything illegal.

Answer 2

Whether you choose to report "tax cheats" to the IRS is up to you. If you do choose to report someone, the IRS does have a "finders fee" that they can award based on how much the IRS collects.

The only problem with this "finder's fee" is that you should not count on receiving this money anytime soon. The reason for the delay is that IF the IRS does follow-up and come after the "tax cheat", the process is a long one. To audit and collect may take months or even years. So if you expect to receive a reward, just sit tight and be patient.

Or you can choose to report the person and do so anonymously, thus forgiving any potential reward.

Or you can choose not to report them.

But the choice is up to you. Good luck!!

Answer 3

Nevermind right or wrong, there is a price on his head..."If the [IRS] proceeds with any administrative or judicial action described in subsection (a) based on information brought to the [IRS's] attention by an individual, such individual shall, subject to paragraph (2), receive as an award at least 15 percent but not more than 30 percent of the collected proceeds" Section 7623 of the Internal Revenue Code. If the IRS swipes $100,000 from this blowhard, you get at least $15,000 and maybe up to $30,000.

Answer 4

Report them!! The reason that we honest people pay so much in taxes is because of the tax gap, much of which is due to others' cheating! Do society a favor and report them!!
(You also may be eligible for a reward from the IRS: http://www.irs.gov/foia/article/0,,id=132336,00.html.)

Answer 5

Learn what they are doing. Not so you can do it yourself, but if it does break the law, then report them. If what they are doing is within the law, then you learned something useful.

As for the boasting, ignore it. LTS (Life's too short). Someone who boasts too much is probably insecure. Their bragging shouldn't affect you. In fact, most who brag about their financial status are spending everything they make and more. Save your money, contribute to retirement plans, Roth IRAs, all you can. When they reach retirement age, they'll probably have to keep working. When you reach retirement age, you'll be much better off.

Good luck,

Answer 6

If they cannot afford to pay their fair share of taxes, what kind of status do they really have?

You will likely forfeit your family membership if you report them, but if you have detailed knowledge of the matter and do not report it, you are an accessory to the crime, tho prosecution is not likely.

Nice situation your family member has created for you. To stay right with your country you must report. To stay right with your family you must stay silent. To attempt to do both requires you to keep at least one potentially harmful secret.

Cheats, please consider what your actions do. Visit other places with open eyes -- if you have half a brain you will then pay your taxes without even trying to cut corners. Geez.

Answer 7

Depends on what they are doing. If they are making some extra "deductions" then whatever. But not paying most of their taxes is wrong. But what you should do is call them out every time they boast about themselves. especially infront of other family and friends. They will quickly realize they are pathetic.

Answer 8

Are they running a business and not reporting everything? If so, people do that all the time. Heck, when I was 17 I ran a pretty lucrative baby-sitting business. Did I fill out any W-2's, nope. And how much does the government steal from taxpayers every day? Are you ratting out one rat to another rat? I'm not a dishonest person, but I think it depends on the situation and it sounds like your motives for wanting to "tell" on this person are out of jealousy. And one last thing, contacting the big brother just puts YOU on their massive radar.

Answer 9

Hey let them keep doing it as long as they want, Because eventually the IRS cathes up with EVERYONE. And the more they pull the crap the more they will owe....Be patient and see what happens to their cheating asses..

Answer 10

Go for it.

I have heard they will pay a "reward", which is a percentage of what they get from the guilty party.