Unreported Income

[JhwL]

This pertains to Mississippi.

I want to report an individual to the IRS for unreported income but don't know if I can prove anything I claim, would the IRS follow up with a proper investigation or am I wasting time pursuing this?

What I know about the situation is an individual owns a home in Mississippi and has collected $700 monthly rent from three occupants since 2012.

There is no written rental agreement, and no receipt is given but the tenants pay cash every month. I know the names and addresses of the four people involved. Is there anything else I could reasonably collect for the report?

 

[single317dad]

Sure, you can report this fraudster to the IRS. They won't be in a big hurry to investigate $8400/yr in unclaimed rental income with no corroborating evidence, but they might get to it. I would be more concerned about the possibility of leaving three people homeless because I set events in motion over what is presumably some petty grievance with the landlord.

How is it that you have come to know with such certainty that the person A) is receiving said monies and B) is not reporting them?

 

[CSO286]

Sure, you can report this fraudster to the IRS. They won't be in a big hurry to investigate $8400/yr in unclaimed rental income with no corroborating evidence, but they might get to it. I would be more concerned about the possibility of leaving three people homeless because I set events in motion over what is presumably some petty grievance with the landlord.

How is it that you have come to know with such certainty that the person A) is receiving said monies and B) is not reporting them?

Hey, single317dad---OP's pissed at someone and is just looking to ruin the possibly illegal landlord's day.

Who cares about the fallout?


*eyebrow*

 

[JhwL]

I know because I've been in the house when they've gathered the money, put it in an envelope, and handed it off to the landlord.

You seem to be of the opinion this is a harmless crime. The residents are living in a house owned by the superior of the roommate that handles the money directly. That roommate has expressed to me distress over the fact they are 100% responsible for any repairs the house or it's appliances have needed, and could be kicked out at any time with no repercussion. Furthermore, they feel intimidated to stay where they are because of the work relationship between the home owner and tenant, that consequences would follow if they found new housing.

What would be in the best interest for the three people who are living in this house would be for the home-owner to act as a proper landlord, I would think reporting the owner would at worse force them to increase rent to cover the expense of the back-taxes they would owe. I don't see why you think someone who was caught lying about their income would then evict that income. Surely what would most likely happen is their rent would be adjusted.

I'm just a friend. I play table-top games sometimes at the house. Do you have any thoughts for someone who isn't just out for petty revenge?

What I suspected to be true is, are you people telling me this is the perfect crime and there is nothing I can or should do about it?

 

[CSO286]

I know because I've been in the house when they've gathered the money, put it in an envelope, and handed it off to the landlord.

You seem to be of the opinion this is a harmless crime. The residents are living in a house owned by the superior of the roommate that handles the money directly. That roommate has expressed to me distress over the fact they are 100% responsible for any repairs the house or it's appliances have needed, and could be kicked out at any time with no repercussion. Furthermore, they feel intimidated to stay where they are because of the work relationship between the home owner and tenant, that consequences would follow if they found new housing.

What would be in the best interest for the three people who are living in this house would be for the home-owner to act as a proper landlord, I would think reporting the owner would at worse force them to increase rent to cover the expense of the back-taxes they would owe. I don't see why you think someone who was caught lying about their income would then evict that income. Surely what would most likely happen is their rent would be adjusted.

Before I answer my relation to this matter could you please tell me if you have any actual knowledge of what can and has been done in a similar case?

Basically, you're talking about >$10,000.....

Your uncorroborated report will end up at the bottom of a pile of possible fraud. It might be looked into. It might be investigated. It might be pursued. It might be screened out.


I broke the FA crystal ball last week.

 

[Silverplum]

I know because I've been in the house when they've gathered the money, put it in an envelope, and handed it off to the landlord.

You seem to be of the opinion this is a harmless crime. The residents are living in a house owned by the superior of the roommate that handles the money directly. That roommate has expressed to me distress over the fact they are 100% responsible for any repairs the house or it's appliances have needed, and could be kicked out at any time with no repercussion. Furthermore, they feel intimidated to stay where they are because of the work relationship between the home owner and tenant, that consequences would follow if they found new housing.

What would be in the best interest for the three people who are living in this house would be for the home-owner to act as a proper landlord, I would think reporting the owner would at worse force them to increase rent to cover the expense of the back-taxes they would owe. I don't see why you think someone who was caught lying about their income would then evict that income. Surely what would most likely happen is their rent would be adjusted.

I'm just a friend. I play table-top games sometimes at the house. Do you have any thoughts for someone who isn't just out for petty revenge?

Mind yer own business.

 

[JhwL]

It would be my business if the $32,000+ of unreported income were sought by the IRS. I want the 10% submitting the report for fraud would entitle me to if they do anything.

 

[commentator]

After many years of dealing with fraud in unemployment, and the reporting of things, I can tell you that the one thing you'd most like to have happen, the immediate repercussions, where this person is caught and punished appropriately, will not happen. And you'll never know. The one thing they absolutely will never do is call you back and say, "you know, you were right! This guy was cheating on his income taxes and we and your whole government thank you! We're going to make him pay, and this is what we're going to do to him...." You just report him, and they put it somewhere, and likely, very likely, that's the last you'll ever know or hear of it. Your friends need to find another place to live if they are dissatisfied with their living situation.

 

[Eekamouse]

I know because I've been in the house when they've gathered the money, put it in an envelope, and handed it off to the landlord.

You seem to be of the opinion this is a harmless crime. The residents are living in a house owned by the superior of the roommate that handles the money directly. That roommate has expressed to me distress over the fact they are 100% responsible for any repairs the house or it's appliances have needed, and could be kicked out at any time with no repercussion. Furthermore, they feel intimidated to stay where they are because of the work relationship between the home owner and tenant, that consequences would follow if they found new housing.

What would be in the best interest for the three people who are living in this house would be for the home-owner to act as a proper landlord, I would think reporting the owner would at worse force them to increase rent to cover the expense of the back-taxes they would owe. I don't see why you think someone who was caught lying about their income would then evict that income. Surely what would most likely happen is their rent would be adjusted.

I'm just a friend. I play table-top games sometimes at the house. Do you have any thoughts for someone who isn't just out for petty revenge?

-The utilities have been in one of the roommates names since they moved in, so that should establish how long it's been going on.
-I can't know if it's not reported. But surely if an investigator can see 3 people who are not the home-owner clearly living in the house and no mention of it on the owner's taxes and be done with it.

What I suspected to be true is, are you people telling me this is the perfect crime and there is nothing I can or should do about it?

You don't know what you're talking about. You're ASSUMING. Assuming about something that is NONE OF YOUR BUSINESS. You want to stir up something and you don't even know what is really going on. Get. A. Life.

 

[JhwL]

What would constitute proof of cash payments recieved? I'd like to discreetly collect this information, submit it, and years later get a check from the IRS for pointing out a fraud. Surely at least one person doesn't want to simply shame me for that? This is a legal forum, so stop pretending to be good guys and tell me how to turn this information into profit.

The people involved genuinely do want out. They're too afraid to do anything unless they know they'll be protected. They're basically being forced to live in that house under threat of unemployment. This isn't a harmless situation. They won't do anything unless they know everything they need to get out of it.

 

[Eekamouse]

What would constitute proof of cash payments recieved? I'd like to discreetly collect this information, submit it, and years later get a check from the IRS for pointing out a fraud. Surely at least one person doesn't want to simply shame me for that? This is a legal forum, so surely there are other wanna-be sharks that could tell me how to turn this information into profit.

Good luck with that. Won't you be just so mad when this doesn't pan out the way you hope and you get nothing for your efforts. Swim away, little minnow. No free money for you.

 

[JhwL]

Good luck with that. Won't you be just so mad when this doesn't pan out the way you hope and you get nothing for your efforts. Swim away, little minnow. No free money for you.

Since you are not offering any information I'd like to ask you find somewhere useful to be, since you seem to think wasted time is the greatest failure in the world.

All of your completely inane opinions about my motives can be backed up by people with even less awareness of the situation than I have been chastised for having. My advice to you is seek ointment for all the lame high-fives you give each other for thinking you made a point on the internet.

 

[CSO286]

What would constitute proof of cash payments recieved? I'd like to discreetly collect this information, submit it, and years later get a check from the IRS for pointing out a fraud. Surely at least one person doesn't want to simply shame me for that? This is a legal forum, so stop pretending to be good guys and tell me how to turn this information into profit.

The people involved genuinely do want out. They're too afraid to do anything unless they know they'll be protected. They're basically being forced to live in that house under threat of unemployment. This isn't a harmless situation. They won't do anything unless they know everything they need to get out of it.

There is no "Proof of cash payments". They are cash payments.

The tenants don't like the current situation? They can move out. They are not chained to the property. The senior tenant is worried about repercussions as he is a direct report to the landlord?

If he has any trouble at work, he reports to HR.

The people involved (NOT you) have options. No one is holding a gun to their heads making them rent. They want out, they move out.

You need to butt out, as this is NOT your problem. Not your circus, not your monkeys. Now, please, go away.

 

[ecmst12]

How do you have any idea what the landlord, who you've never met or spoken to, does with his taxes?

 

[JhwL]

How do you have any idea what the landlord, who you've never met or spoken to, does with his taxes?

Because there's no lease, and they only take the rent in cash. There's a saying about things being what they look, act, and sound like. An audit proves fraud. I'm not the IRS, only they can know. People claim any report will be indiscriminately thrown to the bottom of a pile, so as long as it's really happening what I know is enough for them to go off of.

If the general consensus of the people who contributed their input was you didn't want me to do anything.. that was a pretty ineffective way to go about doing it. Yes, since I was already sure even the most thorough of reports would be back-logged for years in a legal jungle, I didn't see much point to doing anything. However, for the satisfaction opposing you gives me, I've submitted a report, as it's the antithesis of your will.

I hope some ready-to-retire IRS worker reads it and has a heart attack over the outrage of it all.