There is someone in my neighborhood who is operating a lawn care business that is not registered with my state (Maryland), and therefore does not pay the required taxes. I think this is unfair to other companies who also service my neighborhood, as they are making less money in the long run. This is this individual's only source of income, its not a side business. Does anyone know if/should he be reported and to whom?
i second this. i know it may be illegal...but i am from the type of community where i would rather see people working hard to get paid than stealing. if they are just starting out, i would let it go...but if they are established...then i would do a little investigating (as if they are successful, they should be smart and go by the law). thats just my 2 cents
In all honesty, sometimes it's best to let these things go. Not everyone is going to play by the rules, however there is nothing to really gain in this particular situation.
Its hard to know if they do or dont pay taxes as you said unless you have inside information.
Am sure that people who work with him get a receipt. You can check the receipt if it contain any business name. If his receipt dont have a business name or tax identification number you can report him to the IRS.
You correct when you say he does pose an unfair business practice. Since he can undercut the price and charge less if he dont pay taxes.
This is a sticky subject. It's nearly impossible to know if he's not registered under a different name using a DBA.
There are large amount of fly by night lawn care services that never pay taxes or provide the proper insurance they should.
Good luck with the situation.
The business can also be registered with the town clerk. Check with them first. If you think there is Income Tax Fraud, you can contact the IRS.
See http://www.irs.gov/individuals/article/0,,id=106778,00.html
---This post was edited to fix the link
BizResearcher | Window Shopper |
7/27/2010 - 8:40 am
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The business can also be registered with the town clerk. Check with them first. If you think there is Income Tax Fraud, you can contact the IRS.
See http://www.irs.gov/individuals/article/0,,id=106778,00.html
---This post was edited to fix the link
Most states now require businesses to file their name and entity type with the Secretary of State's office rather than at the local level. If the person is using his own name for the business and not a unique name, and he is a sole proprietorship, he may not be required to file a DBA.
Are you certain he is not paying taxes? If he is a sole proprietor, he should be filing a Schedule C with his personal taxes and paying self-employment tax. If you can prove that he is not, then you may want to report him to the IRS and your state tax or revenue department. Just be sure you can provide proof should you be required to do so.
i second this. i know it may be illegal...but i am from the type of community where i would rather see people working hard to get paid than stealing. if they are just starting out, i would let it go...but if they are established...then i would do a little investigating (as if they are successful, they should be smart and go by the law). thats just my 2 cents
Many people play around when registering their businesses in order to avoid taxes. If this really bothers you, ask him to his face what the story is. He'll probably tell you the truth. It's not fair to set the IRS on him because he registered the business in his wife's name, or something.
However, you can ask his workers if they are satisfied with the pay and benefits that they receive. If they're not, explain to him that unless he is legitimately registered he can be reported to the IRS.
youngward | Performer | 8/25/2010 - 8:39 am
ksundheim | Contributor | 8/15/2010 - 11:25 pm
gretcyshaw | Creator | 8/12/2010 - 8:54 pm
jstowe313 | Window Shopper | 7/28/2010 - 7:10 am
teamextension | Contributor | 7/27/2010 - 5:39 am
BizResearcher | Window Shopper | 7/27/2010 - 8:40 am
joshweiss | Window Shopper | 1/18/2011 - 5:16 pm
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