In NYC, there are numerous businesses that cheat tax. For example, the 99 cent store collects $1.08 for the item. They made $6480 per month. However, they only report $3000 to IRS.
I am sure they do this because they don't have credit card machines. When I ask them why, they said that they don't want to report to the IRS for earnings.
I want to uncover their unlawful acts. What should I do? I don't have any solid evidence but if you tell me what type of evidence is needed, I can do it. A bill, a photo, anything.
2007-08-15 04:28:46 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Unless you are the accountant or bookkeeper for the store you have no knowledge of what is going on and have no way to get that knowledge. What a cashier earning minimum wage tells you is meaningless. Since you have no evidence, the IRS would ignore your complaint.
Get a life and worry about yourself, not what some min-wager at a dollar store tells you. If anything dodgy is going on, the IRS will figure it out sooner or later.
FYI, most 99¢ stores don't take credit cards because of the fees and charges involved. They operate on razor thin margins and the credit card fees would eat deeply into their profit. Also, a store only bringing in $6,480 per month won't stay in business very long given the thin profit margins in that type of business.
2007-08-15 04:58:42 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 1⤋
Are you an ex-employee there?
If a company were cheating on taxes, why would they tell a random stranger that they report a lesser amount. That doesn't make sense.
If the additional 9 cents on the 99 cent item is tax, they return that to the government separately.
2007-08-15 11:37:47 · answer #2 · answered by brettj666 7 · 1⤊ 0⤋
Unless you are their accountant you have no idea what they do or do not report to the IRS.
Credit card payments are not related to taxes at all. They just don't want to pay the commission to the credit card companies, and I can't blame them for that. I think the commission is 4%.
2007-08-15 11:37:30 · answer #3 · answered by Landlord 7 · 1⤊ 0⤋
if there is a suspicion of tax fraud the IRs will audit the business and go over their books. just call the IRs you don't want to be accused of tampering with evidence.
2007-08-15 11:37:40 · answer #4 · answered by Sweeney 4 · 0⤊ 0⤋
send an anonymous note to the irs, giving them the details and name and address of the business and tell them to check out the place
2007-08-15 11:38:55 · answer #5 · answered by Anonymous · 0⤊ 1⤋