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» From: White Pigeon, MI

Dear TaxMama:

When a man makes $85,000 a year, and doesn't file any Federal taxes for the last 7 years, is THIS tax evasion?

How can he get away with this after repeatedly being turned in to the IRS?

Ann

TaxMama Replies
Dear Ann,

It may be tax evasion. But at least it's not tax fraud.

Why does he get away with it?

Because you haven't turned him in - with useful data?

There is a potential reward if you do. You may call IRSs criminal investigation to report him at 1-800-829-0433

Tell them you want to file a Form 211 and make a claim.

It would help if you could provide them with specifics about that person - name, address, SS# (if you know it), vehicle description and license #, where they are working or how they are earning their $85,000.

The more information you give them, the better chance there is of IRS being able to find his assets and collect the back taxes. You only get a reward if IRS collects money.

IRS gets lots of calls from people angry with 'friends' or relatives who live far too well because they don't pay taxes, and throw it in their friends' faces. But if you can't give IRS any solid data to work with to prove the case, they will work on cases where they have a starting point first.

So, if you've called many times, and just given them a name and address, that doesn't help at all.

And remember, they do get lots of calls. And there are lots of cases being investigated. Ideally, IRS will take the cases where there is a high tax balance due to collect - and assets to attach to pay for the investigation.

What you don't realize, often, people who never file tax returns also spend all their money. They have no assets. They can rarely get credit to buy cars or homes, since tax returns are required. So, if IRS does choose to chase after them, what will they collect? They've gotten a little bit more practical about that, these days.

Although, they are starting to enforce the requirement to file currently. So, using their 1099s and cross-referencing databases via computers, more non-filers are getting caught all the time. I know. It's my office they come to, to catch up on all the back returns.

On the other hand, sometimes, it takes two years or more for IRS to build their case. So, while you may not think anything is being done, it is.

Have fun!

Best wishes,

Eva Rosenberg
Your TaxMama

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Library of Congress - 
ISSN 1532-0790
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Eva Rosenberg
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