I'm blowing the whistle on my husbands boss for fed income tax fraud.

[Garylovesmissy]

My husbands boss miss classified him for seven years, and as soon as she found out I knew, she changed her whole bookkeeping system from cash to pay checks. She started slowly in the beginning by telling him he had been filing wrong, even tho she never told him how she knew that. He trusted her, and until she realized I had figured out what she was doing, she had my husband filling out OUR (Mfj.) our income tax returns with his name as sole proprietor, paying self employment taxes and estimated taxes, when he was NEVER an independent contractor, and she knew this. She had him put HER company name based at our address, which makes me wonder, was she even paying any taxes at all herself? Our tax bill is HUGE! And during that time she never paid anything into unemployment, Medicare or social security. In July 2014, when she realized I knew what she was doing, she had my husband fill out his first w-4 since she had taken control of the company from her Grandfather. He gave her the company due to being sued in a slip and fall case. Can my husband use any safe harbor type defense, when he honestly did not know what she was telling him was a case of fraud to save her money, and take ours? He has never had ANY benefits of any type. And can you tell me anything else that may help him?

 

[mightymoose]

You will likely get the best advice and assistance if you gather all your tax papers and go visit an accountant to sort out the mess and then a local attorney. Your husband likely doesn't have anything to worry about so long as he has not under paid. He should expect to lose his job though.

 

[Garylovesmissy]

He is already looking for a job, and he has always paid the 3-6 thousand dollar tax bill. Even tho he only makes about 30,000 a year. And we have all our returns but 2, and we have a tax history covering one of those. Thank you!

 

[army judge]

He is already looking for a job, and he has always paid the 3-6 thousand dollar tax bill. Even tho he only makes about 30,000 a year. And we have all our returns but 2, and we have a tax history covering one of those. Thank you!

Good for you, but if you feel there has been any hanky panky, you are best served to see a tax attorney.

If your husband is paying $3,000 to $6,000 in taxes on a $30,000 a year income, something is very, very wrong!!!!

You may not have all the details.

I can say from what you have said, things are very fishy.

So, a tax attorney is a start.

If the owner is as crafty as you say, she may have set your husband up to take a very big fall.
What you've described is a very serious federal tax evasion and avoidance scheme.
Madam, people go to prison over that, and it bankrupts them.
You might want to play dumb, because you can always use the innocent spouse defense.

 

[Garylovesmissy]

Thank you! I just read this to my husband. He has not been able to grasp why this is so important. And what you wrote finally made an impression on him. He doesn't necessarily believe me when I tell him she has really cheated us and the IRS. Is there much of a chance of recovering anything she gained from our paying such high taxes? Especially given the fact that no Medicare, social sec. Or unemployment was paid by her ay all?

 

[Garylovesmissy]

And about playing dumb, I really don't have that option since I'm mailing a packet of evidence against her to the Whistle blowers office tom. I have everything in there down to pics of my husbands pay checks, proof she suddenly changed her booking, after he worked there for 10 yrs, getting paid cash daily, to having him fill out his first w-4, and holding his pay for TEN DAYS before giving him a paycheck. With no warning , he walked in to do his paperwork like every other day, expecting to be paid for the day's route, and he was, but then was told no more cash, and she did not know when his check would be ready. THAT I'm sure is illegal too! Thanks again!

 

[army judge]

Thank you! I just read this to my husband. He has not been able to grasp why this is so important. And what you wrote finally made an impression on him. He doesn't necessarily believe me when I tell him she has really cheated us and the IRS. Is there much of a chance of recovering anything she gained from our paying such high taxes? Especially given the fact that no Medicare, social sec. Or unemployment was paid by her ay all?

Maybe, so tomorrow find yourselves a good federal criminal defense attorney.
Let him or her examine your documents.
Tell the whole story.
He or she will direct your next moves.
Until that happens,don't tip your hand, and don't blab any of this to YOU KNOW WHO.
I suspect the attorney will arrange a meeting with the US Attorney, or the IRS Criminal Investigation Branch.
He or she will accompany you, or arrange things for you to receive immunity for helping the government.
You know that admonition about YOUR RIGHT TO REMAIN SILENT?
Take that to heart immediately.
If anyone asks, you don't know NOTHING about NOTHING.

 

[Garylovesmissy]

That's exactly what I've been telling him! Again, thank you!

 

[txls]

Ditto, ditto, sounds like need to meet with an attorney. Remember that it is you and your husbands signatures on your tax returns. You need to find out what your liable may be and you need some very expert advise on how to unravel this mess.

 

[ElleMD]

Neither paying by cash nor by check is illegal. Some states stipulate how frequently an employee must be paid and if they must be given notice of the actual paydays but without knowing our state, it is hard to guide you. Ten days between pays would not be illegal in any state.

 

[Garylovesmissy]

Thank you! And about our signatures, most, maybe all returns were filed via computer, so our signatures were electronic, tho most years they have been filed without my seeing them first. That was BECAUSE HIS BOSS ENCOURAGED HIM TO NOT LET ME KNOW WHAT HE WAS MAKING ETC. Sorry , didn't mean to yell. But no, I never saw the returns once she took over, till a few mos ago, when I started putting it all together and went hunting for them.

 

[ElleMD]

Your husband needs to get a backbone if he is letting his boss dictate his marital finances and communications with his spouse. "Because his boss told him not to" isn't going to fly as an excuse with the IRS. It also takes more than just turning a blind eye to claim "innocent spouse". http://www.irs.gov/taxtopics/tc205.html

 

[army judge]

Neither paying by cash nor by check is illegal. Some states stipulate how frequently an employee must be paid and if they must be given notice of the actual paydays but without knowing our state, it is hard to guide you. Ten days between pays would not be illegal in any state.

I hope by now you've reached out to local tax attorneys, decided (or are are deciding) on one to represent you, and discussions are underway (or soon will be) to meet with IRS officials (along with your newly found attorney) to get everything back on track for you and your family.

It'll be a great deal of work and effort, but the end result (if things are done as required) will set your mind at ease. It will also eliminate potential financial and or legal difficulties with the IRS and the Feds. Rome wasn't built in a day, so just hang in there. Thanks to your curiosity and diligence, you've potentially salvaged things for your family.

 

[Garylovesmissy]

Can I truly rely on an attorney who says we don't pay up front, that they only get paid if they win the case? I've never had to deal with attorneys due to crime, only in matter such as purchasing a home, and when I attended college for Criminal justice and paralegalism degrees. And there is one thing that may throw all this in a bigger mess than all the above. His boss is my niece, and his partner is my older half sister. That's a big part of the reason I know so much about this, and she has more money than I can imagine, but she only works a few days a month. Is it possible to ask for a referral to a well trusted tax attorney? Thank you!

 

[Betty3]

Is it possible to ask for a referral to a well trusted tax attorney? Thank you!

If you're asking us this question, we are unable to give a referral to a specific attorney or law firm. You can possibly get a referral from your local or state bar assoc.

 

[Garylovesmissy]

Thank you all for your great advice!