How can I report sales tax fraud for a business that does not report 100% of sales?
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My ex owns a business with his partner and since the beginning in 2001, they have always kept aside a portion of the sales and put it in their pocket. I have no way of knowing the exact amount of the cash, but I do know how they are doing it. His annual income appears as about 59K, but he lives on about 100k. Would the IRS audit his spending and compare it to his earned income?
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Answer:
No, the IRS would only conduct an audit if you were able to give them evidence that they are with holding sales and earnings. Call them up and see what they recommend to you or can give you some guidence about reporting the business.
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