is this legal?

how do I report someone who is self-employed and makes 100k per month but is only paying 10% of their income for tax return? They also only paid cash to all employees. How do I report this employer? What is the process? Do I need to testify if I am one of the employee?

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  • 1 decade ago
    Favorite Answer

    Call the IRS, Internal Revenue Service, directly and they will assist you of what steps to take on how to handle this issue.

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  • 1 decade ago

    No, it's not legal, report the person to the Tax Department, they are not only doing the wrong thing by the government, they are also robbing employees from tax refunds etc., also if you were to go for a loan or credit card, you would have no pay slips or tax returns or anything to show them, so nobody would give you credit. People like this need to be stopped, ask if you can remain anonymous and call from a public telephone or disposable cell phone if you don't want to testify. Also the immigration department might be interested, if you cant get any action from any other source, and I think you can remain anonymous, or the federal police or a place like crime stoppers, they should all be interested in your information, good on you for being honest, Goodluck!!!

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  • 1 decade ago

    And what makes you think the practice is illegal?

    I earn much more and pay my taxes quarterly. I also pay some employees in cash as ordinary business expenses and report it on 1099s.

    Frankly, you have nothing based solely on your post.

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  • Anonymous
    1 decade ago

    Unless you can prove his income beyond a doubt. You better not say anything. As far as paying you cash, this tells me that you have no disability insurance nor unemployment insurance.

    That I would take to the labor commision. You won't be employed there anymore, but if you get hurt on the job you are going to have to pay your hospital or doctor bills.

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  • 1 decade ago

    Think long and hard before you do this. be sure that you are correct, or you will be black-listed all over town. Will your current employer be able to make your life a living hell if you call the IRS and report it. Or you can call the attorney general. i sthe business legal, does it mix in illegal things?

    The whistle blower does good, but gets treated as if they are the criminal. And, yes, you probably will have to testify.

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  • Anonymous
    1 decade ago

    you will need proof, but the IRS will be happy to help you out. the IRS has a crime division for people who evade taxes and file incomplete returns. the crime division of IRS are like real police officers, they carry a badge and a gun as well, and they can go after that person.

    if you were a previous employee, you can tip off the IRS. and i do think you might have to testify.

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  • 1 decade ago

    I go by the "what comes around goes around" theory, and the one that "God sees everything", and the one "mind your own business".

    Do you work for them? What do you have to gain by reporting them? And, do you know all of their affairs or are you only guessing? And, if you are wrong and are libelous, can you handle the suit they will hit you with? Can you handle your own career loss and income if it comes to that? And, do you really know who you are dealing with if you single out this person? Think before you make any moves. Newton's Third Law of Motion is: "For every action, there is an equal and opposite reaction."

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  • Anonymous
    1 decade ago

    I believe the IRS has a hotline where you can report these things. Check their website. If you cannot do it anonymously, then you will have to testify.

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  • 1 decade ago

    Reprt him to the Revenue Officer if you have the evidences to support your report.

    jtm

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  • Anonymous
    1 decade ago

    Yer jes hatin'.

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