How much trouble would the business be in? I heard of this happening in my neighborhood and I was wondering if the place is going to stay open, or maybe change owners? It is a franchise, but there the owner has 2 stores in the city.
2007-12-15 12:25:39 · 3 answers · asked by Brooke 2 in Politics & Government ➔ Law & Ethics
That is called "tax evasion", and is a federal crime.
2007-12-15 12:33:16 · answer #1 · answered by trooper3316 7 · 1⤊ 1⤋
There is a CRITICAL piece of information missing from your question. Did they DELIBERATELY under-report income, or did they just mess up there accounting? If they simply didn't know how to properly report income, they could get off with paying the taxes due with interest and penalties. If they LIED, they owner could face jail time in addition to the above. Even if the government liquidates the business, someone else will probably buy the franchise and reopen the business, unless it was not actually profitable.
2007-12-15 22:04:44 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
If they underreported their income and didn't pay what they should have in taxes, they will have to pay the taxes, plus penalties and interest.
If that is a lot money they can't afford, they could go out of business. The franchise might be taken over by a new owner if that happens.
2007-12-15 20:30:35 · answer #3 · answered by raichasays 7 · 1⤊ 0⤋