Do you pay tax? - Page 2

**Max** · 02-19-06, 02:42 PM

Yes, I pay tax.

Scott · 02-19-06, 02:43 PM

Yes, I report all of my taxes. You do not want to be caught by the IRS. Fear the IRS!

Josie · 02-25-06, 11:07 PM

I don't want to appear "perfect" but I always declare everything, but also make sure that I wring out every possible deduction by saving receipts all year round (yes, even for a $3.99 ream of paper!).

I did work for a tax attorney for about 6 years and although I might have been tempted before to not declare something (although then I wasn't working for myself, so the point was moot), just like people will keep extra change or not let the cashier know if they've missed scanning something, I now would never "mess with the IRS".

Having seen so many people go through so much disruption of their lives and businesses because of the IRS tactics and ways of dealing with people they suspect of tax evasion, it is definitely not worth the relatively small amount of money you may save. Would you like a lien placed on your house and your bank accounts totally frozen without notice, over a matter of a few thousand owed in tax? Another thing a lot of people don't realize is that Tax Court is a totally different animal than the regular court system, with different rules of evidence and different rights (almost always on the government's side) - it's almost as if you are assumed guilty until YOU can prove you are innocent and meanwhile, your business goes to the dogs.

My other piece of advice is that if you do somehow wind up in trouble with the IRS, unless you are totally innocent and want to fight them on it, even if you can't afford to pay what you owe, talk with the agent about working out a payment schedule. Basically, unless you have a really nasty agent, they want to settle cases and get the money eventually, and most are quite willing to talk settlements if you approach them correctly. Just don't piss them off

Tim · 02-27-06, 07:07 PM

If you settled with the IRS like that, would it still remain on your record after that?

Josie · 03-02-06, 08:04 PM

Yeah, it would be on your record, because you'd be agreeing with the IRS that you did not file out your return correctly and if they suspect criminal intent instead of you just being stupid, there's going to be some evidence of that in your tax files attached to your name, but it's still a better way to go than to fight them, IMHO, if you've been not declaring income and they've found you out. You're not going to win in Tax Court anyway if they've found some "evidence" of undeclared income, so why pay an attorney a ton of money? Now, if you're a huge corporation and there are megabucks involved, it's a little different, but for regular guys with small businesses, it's best to put the best light on it (try and get it on the record that you just messed up for some plausible reason) and pay up, even if you have to do it on the "installment plan".

I'm not an attorney, so I can't give legal advice ... I just play one on TV LOL (no seriously, I just worked for one long enough to learn that you don't mess with the IRS - it may be a trite saying, but it is very, very true).

darren · 03-03-06, 09:37 AM

I was always told as a kid the 2 people you dont want to upset are you customers and the tax man, it cant always be helped with your customers but you can always keep the tax man happy if you are honest,

Also having an accountant to take care of things helps.

stevo · 03-09-06, 10:03 PM

Quote:

Originally Posted by anteater

So none of you don't take some cash in hand, and not declare it on tax?
I realise not many are going to want to admit it here, understandably

I have done this. I do work for friends/family too and they give me cash.
I dont see the point of putting this on my tax, as there are no receipts or anything to prove it.

It gets silly if you have to write down every time you pick up a dollar off the ground and declare it on tax.