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My boss owes almost $700,000 to the IRS.He says he has no $ but he just bought a new truck.is this fraud?

He has also accrued an $80,000 debt to the Franchise Tax Board and $10,000 to the EDD.He has no intention of following through with his financial agreements and has closed his bank accounts to avoid levies and has incorporated his business as an attempt to protect his insurance commissions.So... he has "no money" but just put $8,000 down on a new truck and continues to spend hundreds/thousands every month at gun and jewelry auctions...would this be considered enough info to blow the whistle on him?

Public Comments

1. Yes, but the whistle has already been blown since the IRS knows he owes them. When they get around to following up, or if he has already made an agreement and doesn't live up to it, he can kiss his assets like his guns, jewelry and new truck goodbye.


2. Absolutley. Form 2949-A (not certain of form number 2939?) can be downloaded from www.irs.gov


3. The IRS and the FTB are well aware of this guy, so filing form 3949A won't trigger anything. Incorporating won't save his butt, it just postpones the issue.


4. it is fraud

   but you might want to find another job before you blow the whistle because an employer will not hire a whistle blower.

   send an anonymous letter to the IRS and let them investigate.



5. Since the IRS already knows about this, there's no whistle to blow.

   Forming a corp won't help him; it's just a waste of money at this point. As an officer of the corp (and probably its principal shareholder), he's personally liable for the taxes. And any taxes owed prior to the formation of the corp will come out of his personal pockets anyway.

   I'd be more concerned about YOUR situation though. He's about to be shut down by the IRS and FTB. If I were in your shoes, I'd be polishing my resume and be getting ready to jump ship ASAP.

   Hopefully your job responsibilities don't include paying the business' taxes. If they do, YOU can be held personally liable for them as well! (This is no joke. Many a former bookkeeper of a defunct corporation has been held personally liable for the business' taxes when the owners skipped out and could not be located.) Get out of Dodge ASAP!



6. Too late to blow the whistle for a reward, but if it was me, I would volunteer everything I know to the IRS. You can send it anonymously if you want. Give as much detail as possible - specific activities, dates, amounts, etc. so they can prosecute him and levy his assets as extensively as possible. If scum like that paid their fair share, the rest of us could pay less. OK, in theory at least!


7. No. The IRS knows about his debt. They truly don't care if you can't show you don't have any money. They'll wait until he owes them a million or two and then they'll pounce. They'll take every single item away from him. They'll come into his home when he isnt' ready and take every single item out of it and sell it at auction.

   Every time he buys something like a vehicle, you'll have your social security number uses and the IRS follows that carefully. As for the rest, they won't truly care as they know they'll get it too, eventually.

   His insurance commissions won't save him, neither will incorporating his business. The IRS is an institution unto itself and has powers that even our president cannot stop. It's not owned or operated by the USA.

   Do you really want to get your name involved and have them take a look at you simply to tell them what they already know? They know he's hiding money and they know how to find it.

   His biggest mistake.... not trying to get an attorney and getting it down to very little money and paying it off. Then being able to start fresh and doing things right from here on out. They are now going back over the last 7 years of his returns and finding out how much he really owes... plus that;'s 7 years from the date he was found to be fradulent. They can also continue to follow him for the next few years building their case from the past and the present. He'll be in deep....

   The IRS will be happy.



8. Depending on how sharp the IRS revenue officer who get his case is, he may end up being one of the rare individuals who gets prosecuted for willful failure to pay over withholding taxes. He is stealing from his employees and in the federal justice system the offense is classified the same as embezzlement.

   I recommend looking for a new job.



9. You may luck out here. Go to IRS.GOV and obtain a form 211. This is an application form for the reward paid for information which enablea the IRS to put the glom on tax cheats and people like your boss. If you and I pay taxes then cheats such as your boss get no sympathy from me; their cheating means the taxes for those of us being honest are higher as we have to pay for those who don't.


10. My first impression is that you have a potential problem. I base this impression on the fact that you know so much about this person's finances, that you may have some involvement. If you know enough about this, you may find yourself liable for some of the underpayment of business taxes.

    This person is probably stashing cash somewhere and laundering money in addition to his tax fraud. If you have knowledge of this as his employee, this is another potential problem for you.

    Many a CEO has blamed his underlings for criminal actions initiated by the CEO, and claimed no knowledge.

    Disengage yourself from this person immediately to avoid future problems befalling you. In your own best interest, do not report what you know to any taxing authority.



11. IRS is aware he owes, my concern here is how are you getting paid? and are you sure he is reporting the correct information (W2) for you to IRS every year. You could end up thinking the W2 if he is giving you one at the end of the year matches what he is reporting to the IRS.

    You could end up with a CP2000 for underreported income.

    Watch out and start looking for another job.