My boss makes me pay her taxes for her

[nab-400 16]

If you suspect or know of an individual or a business that is not complying with the tax laws on issues such as:

• False Exemptions or Deductions
  
• Kickbacks
  
• False/Altered Document
  
• Failure to Pay Tax
  
• Unreported Income
  
• Organized Crime
  
• Failure to Withhold
  

you need to file Form 3949-A, and send it to Internal Revenue Service Fresno, CA 93888

You may also send a letter to the address above instead of using Form 3949-A. Please include as much information as possible, such as these important points:

1. Name and Address of person or business you are reporting
   
2. The individual’s social security number or the business’ employer identification number
   
3. A brief description of the alleged violation(s), including how you became aware or obtained information about the violation(s)
   
4. The years involved
   
5. The estimated dollar amount of any unreported income
   
6. Your name, address and telephone number*
   

Although you are not required to identify yourself, it is helpful to do so. Your identity will be kept confidential.

[Boiler 47,519]

There is something missing here, no way can you issue a paycheck to an employee without deducting taxes. Been there seen that done that.

OP needs to see an Employment Lawyer.

[Scot19000 3]

There is something missing here, no way can you issue a paycheck to an employee without deducting taxes. Been there seen that done that.

OP needs to see an Employment Lawyer.

Been here, seen this, done this.

http://everydaylife.globalpost.com/working-job-doesnt-out-taxes-30037.html

And for your information, she is my boss. She hired me, runs the salon the way she wants, writes me the checks, and she can fire me if she feels like.

If you suspect or know of an individual or a business that is not complying with the tax laws on issues such as:

• False Exemptions or Deductions
• Kickbacks
• False/Altered Document
• Failure to Pay Tax
• Unreported Income
• Organized Crime
• Failure to Withhold

you need to file Form 3949-A, and send it to Internal Revenue Service Fresno, CA 93888

You may also send a letter to the address above instead of using Form 3949-A. Please include as much information as possible, such as these important points:

• Name and Address of person or business you are reporting
• The individuals social security number or the business employer identification number
• A brief description of the alleged violation(s), including how you became aware or obtained information about the violation(s)
• The years involved
• The estimated dollar amount of any unreported income
• Your name, address and telephone number*

Although you are not required to identify yourself, it is helpful to do so. Your identity will be kept confidential.

Thank you.

[Scot19000 3]

There is something missing here, no way can you issue a paycheck to an employee without deducting taxes. Been there seen that done that.

OP needs to see an Employment Lawyer.

If I could afford or was willing to pay a lawyer I wouldn't be here asking for advice.

I described my situation in the hope of finding a solution from fellow members, in a crowd, there's always someone with a bright idea. You expressed your disbelief the first time and I tried to make you understand but seems like I'm wasting your time and mine. You haven't seen something before doesn't mean it doesn't exist.

I appreciate your time but if your only intention is playing the devil's advocate then keep your judgement to yourself. This is not a courtroom.

Thank you.

Edited December 3, 2015 by Scot19000

[Boiler 47,519]

If I could afford or was willing to pay a lawyer I wouldn't be here asking for advice.

I described my situation in the hope of finding a solution from fellow members, in a crowd, there's always someone with a bright idea. You expressed your disbelief the first time and I tried to make you understand but seems like I'm wasting your time and mine. You haven't seen something before doesn't mean it doesn't exist.

I appreciate your time but if your only intention is playing the devil's advocate then keep your judgement to yourself. This is not a courtroom.

Thank you.

#######

Legally as I have said it is not possible to not withhold

Illegally well anything is possible.

You have received good advise, up to whether to take it or not.

[Simiyus 6]

I totally agree with madtownguy.If PO finds that her employer is cheating on taxes and the rest,then report if you have proof.By the way,how can you can give someone else to use your credit card? It is hard to get a job in the USA when you are an immigrant,so persevere,keep your head low and keeping looking,once you get another job,quit,the will eventually catch up with her.

[Scot19000 3]

I totally agree with madtownguy.If PO finds that her employer is cheating on taxes and the rest,then report if you have proof.By the way,how can you can give someone else to use your credit card? It is hard to get a job in the USA when you are an immigrant,so persevere,keep your head low and keeping looking,once you get another job,quit,the will eventually catch up with her.

What do you "totally agree" with him on? His anger towards me for asking a legal question or his hated for Muslims or him calling someone's suggestion of reporting something illegal stupid and accusing law-abiding, justice-loving people of wasting taxpayers' money?

As far as I know you report something you see and believe to be illegal. Whether to investigate it or not is up to the authorities. If you see your neighbor punching his wife you call the police. I don't think you need a video of the incident to be allowed to report the wrongdoing.

By the way, I never said I planned to turn my boss in but do you think it's ok to not report one's income when one makes hundreds of thousand, drives Mercedes, has dozens of houses and still collects welfare? In my book, it's dishonesty, greed, fraud, it's a crime.

[Russ&Caro 1,549]

As has been pointed out already, nail salons often fall into the grey market where some owners don't pay their employees through the legal tax withholding system. I really don't have anything further to add other than a caution about burning your bridges. Your current boss might be your best reference of employment for your next job, especially since your pay was off the books. There might not be any other way to verify your previous employment than a direct reference from your current boss. Good luck.

[polinka_tlt 0]

You have to submit a statement along with your 1040 tax return explaining the situation. You can write something like:

Line 21 "other income"

Error amount $xxx (amount your boss reports)

Less error amount $x (amount she borrowed and repayed you)

Net to line 21 $xx (amount you actually earned).

That way you won't overpay taxes, it'll also put a red flag on her return. Chances are you (or both you and her) will get audited but they are highly unlikely since you're probably not making too much and IRS is not too interested in your case.

[EE&MY 12]

I know someone who used to be an investigator for the Department of Labor, and some of the things you're describing are along the same lines as employers she investigated. You can call the Department of Labor and explain your case, and they can give you advice on whether it is a case they would possibly investigate, as well as what kind of evidence they would require from you. http://www.dol.gov/wecanhelp/howtofilecomplaint.htm

Good luck and I hope you can get this situation resolved and get out of there.

[madtownguy 164]

I don't have any anger towards you OP, I just think you have anger towards your boss and instead of just leaving you want to try to make their life bad. Now if they owe you money and you need to sue them that's different. But to go around telling authorities they are cheating on their taxes, which you can't possibly know unless you are doing their taxes is juvenile. Seeing your neighbor punch her husband is not the same as this at all, you are witnessing a crime then. In this instance you are witnessing something you think isn't right, you don't seem to know enough about tax laws to know what a crime is. At the end of the day unless this person owns 10 salons, the amount of money the government spends looking into it will be far more than the money the tax payers will get back.

[nab-400 16]

if you see something say something,madtownguy, the law said if you suspect or know of an individual or a business that is not complying with the tax laws report them, it does not say if you are sure. Again if this was just for revenge, that will be a coward acted, if you knew about this before an you never said something before than i will assume you just wanting revenge.

​anyway the boss should be reported to authority's .

[Scot19000 3]

Thank you, everyone, for your suggestions and opinions.

A note for madtownguy: You don't have to come back here to say anything else. Instead use the time to go "save some lives" as you yourself stated.

[Villanelle 4,123]

I have another problem!

I work for someone from the same country as I am. She runs a successful hair salon and really knows how to defraud the system. She knows I'm new and don't know anyone in this country so she screws me up really bad.

She's supposed to pay me every week but she doesn't. So after the second or third week I summon up all my courage and wait until I feel that she's done screaming at people on the phone or being nasty to the ones in the room and ask. She gets really mean and guilt trips me for wanting the money I have worked for. But usually she will pay the next day or the next few days, she always backdates the checks so it looks like she pays me on time.

When she checks my clients out she always asks them for cash. The clients are oftentimes reluctant to. Sometimes they say they want to pay with a card so they can tip me because they don't have enough cash. She tells them, "That's ok. Just pay the fee. You don't have to tip." She also asks regulars to write her checks, putting her name on them, not the name of the business.

The reason why she asks for cash or checks written to her is the income will go unreported so she doesn't have to pay taxes and can continue collecting welfare.

She often borrows cash or my credit card from me. When she pays back the money she includes it in the paychecks so it looks like that's the wage I earn while in fact it is not.

When it comes the time to file tax I am sure she will report all the amount she has borrowed from me and then paid me back as the money she paid me for working for her to get more deduction (she even pays people with no or low income to claim some of her income for her). That hurts me in many ways, not just the tax I will have to pay on the money I loaned her but also higher health insurance premium, and the false higher income disqualifies me from student financial aid.

I will quit working for this woman after she pays me next week. But then what should I do about the tax thing? Who I can bring this case to?

Please help me! You guys have been a great source of information whenever I have a question.

Thank you.

Ok so I am late responding to this thread but since it is still open and you appear to still be unsure what to do- here you go.

You whether you realize it or not are whats called an independent contractor. You will be given a 1099 form at the end of the year (for tax purposes- not a W2)

It is not an uncommon occurrence to dispute the amount on your 1099. (you wouldnt be the first). You say "I am SURE she will report all the amount she has borrowed from me" so thats speculation. It hasnt even happened yet, you are just assuming it will. So what do you do? Well theres several options. The first is trying to get the correct 1099 to begin with.

You can accomplish this by simply making a spreadsheet or list of what you believe your income is (list all your paychecks and highlight what was not payment for work but loan repayments etc) Give it to her as soon as the calendar year is over. Express that this is your calculations of your "income" and expect a 1099 form reflecting THAT amount- no more. Period. Explain if you get a form showing a higher amount you will dispute it with the IRS which would cause them to investigate. She most likely will not want that.

The second option is to wait to see what your 1099 looks like. If it is wrong you would have to ask her to amend it. This is more of a headache as when you get the 1099 it is often already on file with the IRS so she will have to go back and undo/redo things. So its obviously better to get the correct one issued in the first place rather then getting it corrected.

If you contact the IRS and tell them you got an incorrect 1099 they will recommend you get it corrected yourself first. If you are unable to- then you need to address it on your taxes.

Here is a webpage with more info. It does seem to be filled with ads (sorry) but once you get past the ads all the relevant info you need is there.

http://www.forbes.com/sites/robertwood/2015/01/28/disagree-with-an-irs-form-1099-heres-what-to-do/

[Scot19000 3]

Thank you Damara. That's exactly the information I needed!