This year and the next is going to be a very eye opening one for all subcontractors in our industry. During my years working for a Prime, I know for a fact half the guys I spoke with on a regualr basis didnt even file returns, why? The prime made ups Inc and made us get Federal Id's and then in return we file under our SSN, the income is never traced back to the Prime so its lost until a audit is kicked off for each taxpayer.
Example:
Tech makes 65k a year
He claims 40k in milage "If you trace a route your best you may drive 25k a year"
He claims advertising cost
He claims legal fees
He claims a bunch of other false deductions to offset the taxs
He claims the retainer over and over each year
He claims sending $ off to another person as commission, mine was 18k paid to someone else for services. "Who did I pay? I dont know Mickey Mouse?"
Bottom line he gets money back, Uncle Sam never gets a dime. All under fraud for filing a false IRS tax return.
I havent filled my taxes from 2002 till Present. I waiting for my outcome of the SS8 Invest so im not arrested for IRS Fraud. Which the investigator advised was a good choice.
Multiply this by tens of thousands workers accross the USA, this is more than the 2 billion a year total thought. Its a well ogranized system for the Primes to aviod paying tax's, workmans comp for its workers all while demanding you work like your an employee, im not whining but its a fact. One guy I worked with got audited back to 2001 and now hes got a 17k IRS tax lien. The prime I worked for has a Accountant that for 200.00 bucs files out a false return, off course he doesnt put his name on it, but its mailed nice and neat back to you. I sent a and only a 1099, nothing else, it came back with alot of miles, alot of deductions and bame money back. How can I prove them? I cant its a roll of the dice. So this is why the goverment is comming down on this industry not from whinners.
Plus a kick of of FSLA cases has helped spur the movement aswell.
P.S Start making logs of time and miles driven once your Prime gets audited your sure to get hit as well.
Re: Dept. of Labor & IRS to investigate...
Member #: 69149
Registered: 6/7/2009
Posted:
84
Name:
Frank
Company:
Self
Occupation:
Cable Installer
Location:
Pinellas
Personal:
early 40s
Experience:
~25 years
There are 2 replies to this message
