Originally Posted by scp1127
This is slightly related, but it is mainly a story for those illegals out there and to those who don't pay taxes.
Several years ago I got a knock on the door and had my accounting books seized by the IRS. They already had my bank statements for the past few years without my knowledge. I and about ten people did business with a company charged with tax fraud. It ended up that my books actually confirmed his fraud and I spent two years (but only about twenty meetings) with federal prosecutors while they asked me every conceivable question about my business and accounting procedures. I then had to testify for two days about my accounting practices. In this investigation, they obviously looked at all of our business practices. Mine was the only one with not one penny out of place. The other witnesses had fines and penalties just because their books were needed for something else.
When I post about business practices or the Feds and their procedures, it is because while I was helping them, I picked their brains too. I learned so much from that experience.
So while those of you who have less than spotless business practices think you are above the law, you can get that knock on your door for something totally unrelated and find yourself knee deep in hot water with the IRS.
In my situation, the business I was dealing with was legit, but the tax returns were fraudulent.
Yes, yes, yes. I don't have this experience myself, but as I said, my husband audits small companies that are high-risk, and need commercial finance loans instead of bank loans. He'll come home saying that he found out the owner of this or that one hasn't been paying payroll taxes, or that this one is behind on income taxes, and he's the one that found out. There was one that was working on two sets of books, too. They've had to go to court several times to testify about what they found so that the lending company that he works for wouldn't be involved in whatever fines were going to be involved.