What happens if you fail to report cash payments to the IRS?

By Sanford Millar of MillarLaw A Professional Corporation On Sunday, November 13, 2016

If you operate a trade or business and receive $10,000 or more in cash for goods or servicesyou must file an IRS From 8300 and report the payment within 15 days.  The calculation of the $10,000 threshold includes lump sum and cummulative payments made in a twevle month period.  The IRS Form 8300 Reference guide … Continue reading What happens if you fail to report cash payments to the IRS?

Failure to Maintain Business Records Can Lead to Prosecution

By Sanford Millar of MillarLaw A Professional Corporation On Monday, October 17, 2016

A recent appellate court case out of New York (U.S. vs. Marinello) affirmed the conviction for tax evasion of a taxpayer for failing to maintain business records and timely file income tax returns. The facts of the case are as follows: “In 1990, Marinello incorporated Express Courier Group/Buffalo, Inc. (“Express Courier”), a New York corporation.Express … Continue reading Failure to Maintain Business Records Can Lead to Prosecution

Cash Payments to Workers; Convenience or Crime?

By Sanford Millar of MillarLaw A Professional Corporation On Sunday, August 23, 2015

A common technique used to pay immigrants who are ineligible to lawfully work and to pay lawful workers “offbook” in order to reduce reported payroll for workers compensation and other purposes is to pay workers wholly or partially in cash.  Those employers paying in cash are often misclassifying the workers as independent contractors, in order … Continue reading Cash Payments to Workers; Convenience or Crime?

Cash Based Business? Have Good Books and Records

By of MillarLaw A Professional Corporation On Saturday, February 7, 2015

What happens when a taxpayer operates a cash based business and lacks adequate books and records according to the IRS? The IRS can use any reasonable method to reconstruct the taxpayers income and expenses. (See, Estate of Rodrigo F. Fenta, et al. v. Commissioner, TC Summary Opinion 2015-4 ) In the opinion the court states … Continue reading Cash Based Business? Have Good Books and Records