Originally Posted by costumeczar
I know a caterer whose hobby it is to turn illegal operations in. He finds people who are catering without a license by word of mouth, then turns them in to the health department. In my state the person who turns someone in gets a percentage of the fines and back taxes that are collected when they collect all the fines, and he told me that he makes a good bit of money by turning people in.
I think that Loriemoms was one of the only people in this whole thread who pointed out that if you're doing any kind of illegal selling of anything, (take cake out if it for the purpose of this example!) you're not paying income taxes on that income. That's something that the IRS doesn't take lightly, and the do collect their back taxes when they find you...
That's how I knew it was time to get my license...when I felt I was starting to actually pull a profit. Before, any money I made was spent right back buying supplies and equipment. No taxable profit there. Actually this year, my first licensed year, I've done better than ever before but still may not have enough "profit" to tax...maybe just a little.
That's my only point here and I'm sorry if I'm coming across mean or snotty...its just that most of the time the "newbies" selling cakes are not pulling a taxable profit! I mean yeah, if they are pulling in several thousand a year its time to look into the licensing and all but most of them are not.
And I am extremely irritated that there are actually people who make money by getting other people in trouble. I barely have enough time to juggle my own life, to say nothing of somebody else's. If the Dept of Health really truly wants to "get" people, they should hire someone in their own office to do it...not pay "spies". Ya know?
Sorry if I've made anyone upset....I just know its tough to feel "ganged up on" and I just wanted to stick up for the newbies a bit here... knowing that they will get licensed as soon as they are able....and some that cannot in their state...if they are willing to take the risk of selling via word of mouth, that is their decision to make and that decision is really none of my business.