Seth Breidbart <sethb[at]panix.com> wrote:
- quote -

If that is one's purpose, then report it both to the IRS and
the police. If the police develop evidence that increases
the chance of the IRS collecting and you getting a reward.

I notice that in San Francisco, the SFPD have a special
unit devoted to charity and nonprofit fraud.

Steve

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Steve Pope <spope33[at]speedymail.org> wrote:
- quote -

If you report a tax evader to the IRS, there's a program
under which you can get a reward of a fraction of the amount
they collect based on your information.

- quote -

Cops generally don't pay rewards for information about
random crimes.

Seth

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Seth Breidbart <sethb[at]panix.com> wrote:
- quote -

I'm still lost on what the rationale is here.

The magnitude of the crime is large, and you know who did
it, so that somehow argues against reporting it to the cops?

Steve

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Steve Pope <spope33[at]speedymail.org> wrote:
- quote -

$400-500/week is sufficient to cause income tax liability by
itself.

- quote -

In a routine theft case, the perpetrator isn't known, and
the amount is likely under $20,000/year for several years.

Seth

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Seth Breidbart <sethb[at]panix.com> wrote:
- quote -

Put it this way -- it's definitely theft (if the
circumstances are as described above); it's very probably
tax evasion, although you don't know for absolute certain
this added income would cause an added tax liability. (Say,
for example if it's the TP's only income, it might not.)

- quote -

I don't thing that's a good enough rationale to routinely
report theft to the IRS instead of the police.

Steve

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"Bill" <nemesis7[at]mindspring.com> wrote:

- quote -

My first question would be why do you care?

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

Moderator:
a) Because he is a good citizen.
b) Because it's a former business partner who screwed him.
c) Because it's a neighbor who is a royal pain.
d) Because it's one of his in-laws.

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Steve Pope <spope33[at]speedymail.org> wrote:
- quote -

It's both. Stolen money is income.

The local police don't pay a reward to someone who turns in
a thief. The IRS pays a reward to someone who turns in a tax
evader.

Seth

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Bill <nemesis7[at]mindspring.com> wrote:

- quote -

First let's understand the situation.

If the subject is taking cash given as donations to a
non-profit charity and simply pocketing it, then that is
theft more than it is tax fraud. If this is occuring mostly
within one jurisdiction such as a city, it would make more
sense to report it to the police than to the IRS. The
police would investigate and if they come up with a case, it
goes to the district attorney. I know that the police in my
city will investigate thefts smaller than this, so expect
them to be interested. Understand that as part of any
investigation they may want a statement from you, and
possibly your eventual testimony.

Or if the crime crosses state lines, go to the FBI instead
of local law enforcement.

Hope this helps.

Steve

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I am aware of a person who has not been reporting 4-500/week in cash
income for about many years.

Would reporting this to the IRS be too trivial for them to
follow-up. And lis there an avenue through which to report?

Any input please.

Bill

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