Help!!!!

[iqbtrthnuthnk]

What is the name of your state?WA
Business "Side Account"-Tax evasion?

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What is the name of your state? WA
My (soon to be) ex husband own his own business. for the past 3 years he has a "side account" that he will use for depositing payments from cust. that is "off the books" we are talking thousands of dollars per year. We are seperated, and he would like for me to walk away w/nothing. What can I do about "reporting" this? Who do I go to? I have also worked for him , and know that his cpa is aware of this also. ......I am at my witts end to find something to open his eyes that he is a lying cheater.......(in every way )Anything I can do? Please help!!

 

[nextwife]

If you also signed a joint return with full knowledge of this "off the books" unreported income, "reporting" it may backfire on you, as you are also liable for any back taxes due.

How long were you married? What did you each bring to the marriage? What was accrued DURING the marriage? What he already may have had coming into the marriage would not be marital property.

 

[iqbtrthnuthnk]

Thanks for the reply. We have been married 3 years/together 8. 8 years as well that I have worked for him.. .I am curious to know if this would be something I can throw at him? You need to understand that he is very devious , lying , cheaating, steal. All I am looking for is something to "say / throw at him" that might just scare him a bit. ??Wait, the business tax returrn, is signed only by him?? as I aam not an owner what so ever. Although I have done all of the quarterly taxes, ect. signed them..... Do I have anytype of scare tactic?

 

[LdiJ]

Thanks for the reply. We have been married 3 years/together 8. 8 years as well that I have worked for him.. .I am curious to know if this would be something I can throw at him? You need to understand that he is very devious , lying , cheaating, steal. All I am looking for is something to "say / throw at him" that might just scare him a bit. ??Wait, the business tax returrn, is signed only by him?? as I aam not an owner what so ever. Although I have done all of the quarterly taxes, ect. signed them..... Do I have anytype of scare tactic?

Yes you do. If you have children together and child support is an issue then you can most certainly subpeona his business books. Unless he is stupid he will work at a settlement with you at that point....opening his books up in court opens them up for IRS purposes as well. It may even work if you don't have children.

 

[Kansas4me]

Does the business file taxes, and then you and hubby file personal taxes?

If you do not sign the tax returns for the business, and it is totally seperate from your personal taxes, then you might be able to use that against him, but like it was said if you signed them even if you didn't have a clue about it all, you can be held liable.

 

[iqbtrthnuthnk]

yes, the buisiness files and then we file our own. the business is a corporation, and he will take payments from customer and deposit into another account under the corporation name but it is non-interest bearing so there is no 1099 issued.....and by doing this it reduces the income of the business meaning less tax owed. AND no tax paid on the money that has been received and put into this side account.

 

[LdiJ]

yes, the buisiness files and then we file our own. the business is a corporation, and he will take payments from customer and deposit into another account under the corporation name but it is non-interest bearing so there is no 1099 issued.....and by doing this it reduces the income of the business meaning less tax owed. AND no tax paid on the money that has been received and put into this side account.

You can definitely hold that over his head. Tell him that unless he deals with you fairly (and be fair yourself please) that you will report him to the IRS. Since his business is a corporation they will jump on it fairly quickly in "IRS time".

 

[iqbtrthnuthnk]

Thank you for the info. All I want is a down payment on a house for my son (previous relaitionship) and myself. I don't want his empire.....just something to get me started and then I want out! I need to figure out how to approach him w/this ...he is not the type to respond to threats per say. But thanks for the info, I have been wanting to know my options w/out paying an attorney $7000 for just a retainer fee (which is the last quote I got...)

 

[cyana24]

You can definitely hold that over his head. Tell him that unless he deals with you fairly (and be fair yourself please) that you will report him to the IRS. Since his business is a corporation they will jump on it fairly quickly in "IRS time".

OP can you prove the existence of his "off the books" income? Can anybody else verify their existence?

My ex was doing the same thing with his small incorporated business (taking $1000s off the books) and I did report him to the IRS Fraud hotline. I did get a file/case number and was asked if my ex would be considered "dangerous" so anybody they sent would be prepared. Nothing happened because the IRS was "too busy" to investigate unless there were hundred of thousands of $$$ involved.

My lawyer supoenaed all of his business records and my ex ignored the demand. Then my lawyer had the Judge issue a "Motion to Compel" which my ex obeyed at the last minute, but even then his "off the books" records were not produced because he had destroyed them.

Perhaps the threat will work but I caution you against getting your hopes up too much.

 

[Some Random Guy]

Your one benefit over cyana24's situation is that you know that the funds were deposited into a bank account, and those records will be kept by the bank.

Do you know the account number?

 

[LdiJ]

Your one benefit over cyana24's situation is that you know that the funds were deposited into a bank account, and those records will be kept by the bank.

Do you know the account number?

Its more than that..the OP's STBX has a corporation....those complaints are addressed with priority.

 

[iqbtrthnuthnk]

yes, I do know the acount number, and every check that was deposited into this account I had made a copy of. We are talking $50G-$100G per year that was side swipped!
All I know is he wants me to walk away w/nothing, and to be free of him is worth it, BUT: knowing what I know...i cant let it rest.....I do knww that I want himto consult his legal and the $ to do so, for what I present him! I need all my ducks in a row to proceeed!!

 

[iqbtrthnuthnk]

I guess my bottom line question is :" is this corporation owner doing some tyoe of fraud/tax evasion?" (i think so) but who knowss what the judge would say. No childrend, and not been married very long.....long enough I might add. I just want him to pay for NEVER suffering for any wrong doing! If I did not get a dime from him, knowing that he would be paying $ and/or suffering heardache...would be the icing on the cake for me!

 

[cyana24]

Its more than that..the OP's STBX has a corporation....those complaints are addressed with priority.

With due respect, Laura, I disagree. My ex's business was a corporation also and the IRS barely gave me the time of day. We are talking about $1000's in unreported income which my ex used to buy expensive toys (kayaks, jetskis, computer, Underwater camera and complete video system, list goes on and on). His girlfriend shared in his "take"; not me, and not my two teenagers.

I gave the IRS everything I knew, his business location, his EIN number, a very crude estimate of what he had taken "off the books" - what more could I give them?

As I said to the OP, calling the IRS, or threatening to call the IRS may work.

 

[nextwife]

Thank you for the info. All I want is a down payment on a house for my son (previous relaitionship) and myself.

And if you didn't help him build that empire, you wouldn't be entitled to it anyway.

As a divorcing spouse, you should be entitled to a split of the debt and assets accrued during the marriage. And each of you is entitled to what you brought into the marriage. So, half of the equity that accrued in the house DURING THE MARRIAGE is not unreasonable. But, if say, you wanted a split of half of all the equity of a house he had already owned before the marriage, that IS unreasonable. And you are also responsible for your share of any debt accrued by you both during the marriage.

If you are trying to hold this account, that YOU benefited from, over his head to get more than that, one might view it as a form of blackmail.