taxes

I believe that the IRS pays a 10% bounty to the person who turns in a tax cheat.

Why are you shielding this person? Do you enjoy paying their share?

No, I do not enjoy paying their taxes. I am outraged. They also have complained about increasing property taxes in front of me, complained that the local township used some tax $ to create a local park and ballfield in the neighborhood.
My instinct and personal feeling is to report them. I on some level feel that I am doing something wrong by reporting them- a general uneasyness about doing it. I talked with a friend about it and they stated that I would get "bad Karma" and to mind my own business. It sounds a little like nonsense but I do sort of feel that way.

It's either let them sponge off of you, and me, and hope that their own 'bad karma' catches up with them... or not.

In some ways you are generating your own 'bad karma' by letting it continue. Accessory to fraud?

Beebo--

Righting a wrong will bring bad karma? I doubt it.

Are you, perhaps, diffident about siding with Authority rather than with your "friends" or "peer group"? Kids are taught not to tattle--or at least they were until adults noticed that bullies can really hurt kids. Adults in a democracy have responsibilities to each other and to the state.

In general, do you admire whistleblowers?

Depends on how much it irks me. Most of the time I haven't the energy to be bashing people for their wrongdoing but if I was really peeved I might be tempted to call federal/state authorites and "inquire" about how I could get these fabulous grants like a certain person I know. If a lightbulb goes off, they may ask you for more info. Ah sure what can you do? Oh my bad?

RESPONSIBILITY.

Here's the IRS page about reporting tax fraud. It does mention the possibility of rewards in the FAQ.

http://www.irs.gov/irs/article/0,,id=106778,00.html

These people are not my friends & not my peer group-- lets say they live in my neighborhood (this is the truth) and may be related - in some way to some people I am related to (not a direct family member). This information has come to me through my spouse.
I do admire whistleblowers.

I appreciate the input and am pretty sure that I am going to call the IRS. I posted the question because I feel bad about reporting them. I do feel that it is the right thing to do. Maybe I feel bad about the pain it will cause the people around them. - Sort of feeling that I caused it - in a certain way.

Still looking for input on the situation. Any comments are appreciated.

I'd turn them in, beebo. If they're breaking the law, and you (or your spouse) are aware of that, then you're accomplices in the crime. (Does that help?)

I know that practically all of Chinatown commits tax fraud. It's just the way things work in a cash-only business.

Knowing it does not make them accomplices.

If you are anquishing over doing this then let it go. You should only do it if you feel little or no guilt in doing so. These people who have done wrong will get theirs in the end - somehow. If you cannot live with yourself by being the cause of this, then drop it. You are not obligated to do anything, but if you WANT to do something then do it. Guilt is theirs for wrongdoing and I wouldn't parade the fact around that you dropped them in it if you want to keep the peace in your associated lives.

The IRS won't come storming into their home with guns drawn.... they will simply begin an audit procedure.... the people will have ample time to prepare for the audit.... the IRS will handle everything respectfully.... if the IRS discovers some errors, it will work with the people to correct the errors.... yes, it could end up in court, with charges filed.... but, that would be sometime down the road....

I know someone who was involved in a fraud.... he spent some time behind bars.... he was offered financial management jobs while he was behind bars.... geez....

beebo, I think you need to contact the IRS.... there are honest people who are looking for grant money....

I can't believe someone tried to put a guilt trip on you with "bad karma".... that's funny!!!

PaL
:-)

Well, I do think what they are doing is wrong. Honestly, I hoped they would have been audited by now- I mean in this year alone they paid cash for a new toyota camry and a home.
I know about the 10% kickback that the government gives to people who turn tax fraud in- I am really not interested in that & there is no way that I want them to know that it is me turning them in.

Okay- just an update- I did report the person to the state dept. of education- they have a web page where you can submit info for without revealing who you are. I have decided to report them to the IRS- but will have to sit down and write the letter first.
thanks