When to Turn in Tax Evaders

Practical and Practice issues for Professionals who practice in the area of taxation. Moral, social and economic issues relating to taxes, including international issues, the U.S. Internal Revenue Code, state tax issues, etc. Not for "tax protestor" issues, which should be posted in the "tax protestor" forum above. The advice or opinion given herein should not be relied on for any purpose whatsoever. Also examines cookie-cutter deals that have no economic substance but exist only to generate losses, as marketed by everybody from solo practitioner tax lawyers to the major accounting firms.
User avatar
Number Six
Hereditary Margrave of Mooloosia
Posts: 1114
Joined: Fri Aug 29, 2008 7:35 pm
Location: Connecticut, "The Constitution State"

When to Turn in Tax Evaders

Postby Number Six » Sat Aug 30, 2008 4:56 pm

Since getting back into tax compliance myself, I have turned in a CPA for substantial unethical conduct--reporting the fraud to both the state ethics committee, which was forwarded to the IRS compliance unit. I knew a guy who bragged about being "out of the system" and made substantial income, using many people badly in the process. What is the level of evasion and fraud which is significant enough to be reported? I know people who have been paying workers under the table for many years. The state D.R.S. has contacted me looking for names.
'There are two kinds of injustice: the first is found in those who do an injury, the second in those who fail to protect another from injury when they can.' (Roman. Cicero, De Off. I. vii)

'Choose loss rather than shameful gains.' (Chilon Fr. 10. Diels)

User avatar
jkeeb
Pirate Judge of Which Things Work
Posts: 321
Joined: Thu Jan 22, 2004 7:13 pm
Location: Atlanta, GA

Re: When to Turn in Tax Evaders

Postby jkeeb » Wed Sep 03, 2008 3:20 pm

For criminal investigation, the bar is set high at the IRS. They want big dollars and multiple years. Big dollars means $50,000 tax/year.

However, any referral will get a good look. Most referrals are handled by examination which would mean that unless that person told you he/she was being examined, no one would know that the IRS was acting.
Remember that CtC is about the rule of law.

John J. Bulten

User avatar
Number Six
Hereditary Margrave of Mooloosia
Posts: 1114
Joined: Fri Aug 29, 2008 7:35 pm
Location: Connecticut, "The Constitution State"

Re: When to Turn in Tax Evaders

Postby Number Six » Wed Sep 03, 2008 3:52 pm

The unfortunate fact is that the tax standards are not uniform or uniformly applied. The homeowner pays foreign immigrants cash to paint his house to save himself money faces no legal jeopardy while the head of a labor company faces many risks should the government enforce the laws--unlikely in the case of immigrants--law enforcement would be left chasing shadows. Congressman Peter King wanted a Federal response to illegal's tax evasion. Is there a site for statistics on IRS' enforcement in this category?
'There are two kinds of injustice: the first is found in those who do an injury, the second in those who fail to protect another from injury when they can.' (Roman. Cicero, De Off. I. vii)

'Choose loss rather than shameful gains.' (Chilon Fr. 10. Diels)


Return to “Tax Practice & Policy and Tax Shelters”

Who is online

Users browsing this forum: Common Crawl [Bot] and 0 guests