If you know of a business that doesn’t exist legally, and therefore isn’t properly filing taxes, feel free to fill out a report for the IRS to investigate. It’s easy. Fill out this form, print it out, and mail it to the IRS.
Some examples of a company that doesn’t legally exist:
A sole proprietorship that has employees. By definition, a sole proprietorship cannot have employees. Period. Sure, they can have independent contractors, but only if those IC’s are properly established as legal taxable entities themselves. If not, they’re employees and must have taxes withheld as such.
Partnerships that aren’t registered with the Secretary of State. A partnership cannot file taxes with either owner’s personal Social Security Number. They must be registered and must have a tax ID number.
An LLC that isn’t properly registered. A company can CLAIM to be an LLC, but if that paperwork isn’t on file as a matter of pubic record with the Secretary of State, it doesn’t exist as one legally. Not only is it false advertising for them to claim it, but there are also all KINDS of taxation ramifications.
If you suspect that a company falls under any of the categories above, report them.
And don’t worry if you don’t have all the information they ask for. A scam business usually puts out conflicting information that makes them harder to find. But this is the IRS we’re talking about. They can find who they’re looking for, and they just LOVE nailing businesses that don’t properly file their taxes. Fill in whatever information you have. They can find whoever they’re looking for, and they don’t play. Tax fraud is a Federal crime, and nobody gets out of it. Nobody. No matter how slick they THINK they are.
And don’t forget to mention any past history the owner of any such company might have. Like, say, another business before that one that was guilty of the same thing. No matter how much a fraud might wish the past was erased just because they want it to be, the IRS doesn’t work that way. They’ll look ALL the way back, and react accordingly.
Here’s that form again.
Fill it out to the best of your knowledge, and be sure to include any proof you have, whether it’s links or documents from personal experience. Send whatever you have. If you don’t have any direct proof, don’t worry about it. Tell them whatever you do know, even if it’s just the company, the owner’s name and the fact that you don’t think they’re legally operating or paying taxes. They’ll sort it out. Especially if it’s a company they’re already investigating.
The best way to make sure a scam can’t hurt anybody else is to make sure it answers for the crimes it’s already committed. Make it accountable for the past, and the future won’t involve more victims.
Have fun, kids.