Income tax issue - Posted by ted (WA)

import · July 18, 2006, 11:34pm

Posted by Jimmy on July 19, 2006 at 08:17:38:

don’t be a dope. your little trick is criminal tax fraud.

import · July 18, 2006, 11:34pm

Posted by ted (WA) on July 18, 2006 at 23:34:06:

I did two deals this year. One, buy fix and sell. The other, assignment.

Profit from these two deals = 37k

I make 50k per year from my daytime job

I am trying to figure a way to deal with the upcoming income tax I will need to pay.

I have an idea. I will pay two people I trust 12k each for labor services reducing my taxable to 63k. Also, I reimburse the two people for the taxes I imposed on them. Then they gift the money back to me.

Is this illegal?

If so, is there something I can do to make it legal?

import · July 19, 2006, 6:56pm

Re: Income tax issue - Posted by Larry K

Posted by Larry K on July 19, 2006 at 18:56:41:

You have just given the IRS their evidence. If you arent sure if it is legal, it is probably not. Hire a liberal tax expert.