X using minor son to run business

[zeuss]

What is the name of your state? Indiana. I posted this in two other places with no response so I might not have put it in the right one. I know I have been on here before with several questions about my X being on medical disability for Hepatitis. I have just found out that he has a business in our 17 year old son's name. He lives with his dad and has the last 1 1/2 years, his dad gets income for our son living there along with child support from me and now he has a business that he receives checks in our son's name. Our son signs them and does not see any of them. While my X travels and is gone for a couple weeks at a time to shows selling his goods and has everyone write out there checks to our son.
I am not sure what to do, first of all my son wants it stopped. His father holds the fact that if he tells on him that he will lose his college funding through his father being a vet and on disability. He is holding my son's future over his head telling him that he will go to jail and all funding will stop.
All I want to know is how this will effect my son in the future. He says that he has not signed any tax papers to file anything. My X does not file taxes because of his disability income, I guess he doesn't have to or something. Is this going to come back on my son for tax fraud? How can I find out who's tax ID number he is using at shows? He has to be posting something. I am not worried about getting any of my support back because I only have two more checks left, I am worried my son will get into some kind of trouble and ruin his future.
Please give me some advise or somewhere to start.

 

[LdiJ]

What is the name of your state? Indiana. I posted this in two other places with no response so I might not have put it in the right one. I know I have been on here before with several questions about my X being on medical disability for Hepatitis. I have just found out that he has a business in our 17 year old son's name. He lives with his dad and has the last 1 1/2 years, his dad gets income for our son living there along with child support from me and now he has a business that he receives checks in our son's name. Our son signs them and does not see any of them. While my X travels and is gone for a couple weeks at a time to shows selling his goods and has everyone write out there checks to our son.
I am not sure what to do, first of all my son wants it stopped. His father holds the fact that if he tells on him that he will lose his college funding through his father being a vet and on disability. He is holding my son's future over his head telling him that he will go to jail and all funding will stop.
All I want to know is how this will effect my son in the future. He says that he has not signed any tax papers to file anything. My X does not file taxes because of his disability income, I guess he doesn't have to or something. Is this going to come back on my son for tax fraud? How can I find out who's tax ID number he is using at shows? He has to be posting something. I am not worried about getting any of my support back because I only have two more checks left, I am worried my son will get into some kind of trouble and ruin his future.
Please give me some advise or somewhere to start.

I would suspect that he is also using your son's SS number, which means that if any 1099's get issued the IRS is going to be going after your son for taxes. This is a really serious problem, and has to stop or it could get your son in a world of hurt.

I think that for your son's sake maybe you should be the bad guy here, and inform dad that if it doesn't stop immediately, that YOU will be reporting him.

 

[zeuss]

How do I find out if he has used my son's SSN?? Would he have filed a DBA or something in Indiana? I know in Michigan we have to file DBA's for any self employed business. My son is totally in the dark on all of this, he has just been doing what he is told. He is getting me a bank print out of all incoming and out going transactions. He is also getting me a business card that his dad is using and anything else he can find. My son is scared at this point and wants it to stop but he is afraid of the backlash that he will get from it. When my son graduates June 3rd I am moving him back to Michigan the next day. I am not sure where to start checking, the IRS, can they give me any information?

 

[LdiJ]

How do I find out if he has used my son's SSN?? Would he have filed a DBA or something in Indiana? I know in Michigan we have to file DBA's for any self employed business. My son is totally in the dark on all of this, he has just been doing what he is told. He is getting me a bank print out of all incoming and out going transactions. He is also getting me a business card that his dad is using and anything else he can find. My son is scared at this point and wants it to stop but he is afraid of the backlash that he will get from it. When my son graduates June 3rd I am moving him back to Michigan the next day. I am not sure where to start checking, the IRS, can they give me any information?

He has to be using your son's SSN, otherwise there is no point in it being in your son's name.

Tell us the nature of the business and what kinds of products are sold. Are they casual sales or are they to companies? What kind of sales volume do you estimate exists? That can help determine which direction to go.

The IRS can't give YOU any information, but they can give your son information....but don't go to them until you have a very clear handle on what is going on.

 

[zeuss]

X using minor son-now worse

My son has just called me and emailed me forms that his dad has sent to him by a company to do business with. The form is a Dealer Application and they are asking for a tax ID number and alot of information.
I just went to his University that he was accepted too and got him all registered for the fall. Now this will show income and will that mess up his funding for college since it will show he has an income? He is scared to tell his dad no, he is a mental abuser very bad. My son is 17 now but 18 on May 19. After he turns 18 he wants me to turn him in but in the meantime. His dad is on Disability and as I understand it can not own a business, correct? But then my son will have to file an income tax return on this business every year and will that mess up college??

 

[LdiJ]

My son has just called me and emailed me forms that his dad has sent to him by a company to do business with. The form is a Dealer Application and they are asking for a tax ID number and alot of information.
I just went to his University that he was accepted too and got him all registered for the fall. Now this will show income and will that mess up his funding for college since it will show he has an income? He is scared to tell his dad no, he is a mental abuser very bad. My son is 17 now but 18 on May 19. After he turns 18 he wants me to turn him in but in the meantime. His dad is on Disability and as I understand it can not own a business, correct? But then my son will have to file an income tax return on this business every year and will that mess up college??

Good lord yes, it could seriously mess up funding for college.

This is really serious, and it really has to stop.

Dad could own a business but he is strictly limited in the amount of money that he can actually earn.

However, you didn't answer my questions, and those questions are important.

 

[zeuss]

My son is afraid of his verbal abuse and it is really really bad. But something has to be done. As far as your questions, I don't know if he is using my sons SSN but the form has a spot for a tax ID number, would it all have to be in my son's name and SSN or disability would track it or don't they do that? My son said that he has it in his name because he can't own a business while receiving disability.
The business is buying and reselling fiber-optic sports caps (NFL, MLB, NBA, College) they are the hats that have the light up logo's on them. The application is from a company called Lightwear. I have no idea the volumn of sales, there is a spot for that on this application that he wants my son to fill out. My son said he was going to fill it out and had no other choice but he would make a copy of it and mail it to me.
My son is getting funding from the fact that his dad is disable and his dad is also a Vet. Now what do I do and do I need someone like a lawyer to do this or can I? If dad gets in trouble for this my son could lose his funding for college all together couldn't he?

 

[LdiJ]

My son is afraid of his verbal abuse and it is really really bad. But something has to be done. As far as your questions, I don't know if he is using my sons SSN but the form has a spot for a tax ID number, would it all have to be in my son's name and SSN or disability would track it or don't they do that? My son said that he has it in his name because he can't own a business while receiving disability.
The business is buying and reselling fiber-optic sports caps (NFL, MLB, NBA, College) they are the hats that have the light up logo's on them. The application is from a company called Lightwear. I have no idea the volumn of sales, there is a spot for that on this application that he wants my son to fill out. My son said he was going to fill it out and had no other choice but he would make a copy of it and mail it to me.
My son is getting funding from the fact that his dad is disable and his dad is also a Vet. Now what do I do and do I need someone like a lawyer to do this or can I? If dad gets in trouble for this my son could lose his funding for college all together couldn't he?

I think that you are going to have to put together a backup plan for funding for college. If his dad gets into trouble yes, he will lose his funding. However, he will also lose it because of the business in his name. The potential tax consequences are also very dangerous.