What happends to Old TPs?

[AFTP]

So this guy isn't a TP he's a straight up tax evader.
He brags "I ain't a tax payin kinda guy" and says he hasn't filed a 1040 since 1984.

He's been doing tattoos under the table in shops and out of his house for years.
He just turned 63 and I was wondering if the Govt. would still give him Social Security or not at this point.

Also, what realistically would happen to him if he contacted the IRS to come clean.
Would they cut him a break, put him in jail or did he screw his old age up?

I reported him twice years ago to the IRS and State because he's a real jerk but nothing happened even though he worked at the same place for 5 years.

Will there be any justice here?

[fortinbras]

I cannot explain why the IRS didn't react to your reports. It may be that he was so penny ante that it would cost the govt more to prosecute than they could hope to squeeze out of him. It may be that he was so cunning that evidence would have been tough to gather, especially in light of the payoff.

On the other hand, if he's concealed his employment for years and years and not paid taxes on it, it may well be that he will find that his Social Security pension is very disappointing.

[LPC]

He's been doing tattoos under the table

That sounds painful.

[JamesVincent]

Something I have talked about before, my uncle did not pay any taxes for over 60 years and got away with it. He did every job for cash, worked for family a lot, and slept in the back of his pickup when he was out working. He also never collected any SS that I am aware of, though he did use his VA benefits, having been a Marine during the Great War. I seriously doubt he made enough money to make it worth the IRS going after him in those years, maybe this person is doing some of the same things. Deal with cash in and cash out and there is no real paper trail for them to follow anyway.

[notorial dissent]

As Fortinbras points out, they probably looked and decided it wasn't worth the expense, and unless he has been converting his under the table billions to cash or bullion and stuffing them under his mattress or burying them in the backyard or whatever, he probably only has pocket change to his name. When, and always assuming if he lives long enough, he goes to apply for SS, they will quite happily tell him he doesn't qualify because he doesn't have a record, and/or enough quarters to qualify, and it will be tough tattoos for him.

[webhick]

I reported him twice years ago to the IRS and State because he's a real jerk but nothing happened even though he worked at the same place for 5 years.

If it were me, I would have called the labor board on the tattoo parlor. They love employers who pay people under the table. And I wouldn't feel at all guilty about the situation it puts the business in since if they can't manage to follow simple reporting requirements, I wonder how they'd do with the health codes.

[AFTP]

If it were me, I would have called the labor board on the tattoo parlor.

I spoke to a State Rep. more than once and she said the State was slow to go after him.
I'll say, they never did squat.

Something tells me the IRS never looked into him. Just a feeling.

[fortinbras]

Don't they require a license of some sort to do tattoos in your state? Have you thought of reporting him to the agency that supervises tattooing?

[AFTP]

Don't they require a license of some sort to do tattoos in your state? Have you thought of reporting him to the agency that supervises tattooing?

Only if you are the owner of a shop do you need a permit.
An employee is just that.
Most tattoo shops don't issue a W-4.

He was reported to the State as well and nothing happened in 5 years.

[The Observer]

He just turned 63 and I was wondering if the Govt. would still give him Social Security or not at this point.

It would depend on how much he has put into SSI and if he has met the 40 quarters minimum for contribution.

Also, what realistically would happen to him if he contacted the IRS to come clean.

Again, it would depend on the severity of his evasion. In most situations the IRS would expect him to file the delinquent returns, and determine his best ability to pay towards the tax, penalties and interest. If he could not pay in full, he might be able to get the IRS to consider putting him on a part-pay agreement, accept an offer-in-compromise or close his case out as currently not able to pay.

Would they cut him a break, put him in jail or did he screw his old age up?

Again, it depends on the severity of the evasion. Given the fact that the IRS and DOJ cannot criminally prosecute every evader, that element alone is in his favor. AUSAs really don't like putting senior citizens on trial who have next to nothing - juries tend to not convict the poor and elderly for basically trying to get by. However, if this guy has benefited from his evasion by having a nice home, sports car, luxury vacations, etc., then he might find himself in court.

I reported him twice years ago to the IRS and State because he's a real jerk but nothing happened even though he worked at the same place for 5 years.

In a case where a person is receiving cash, it is very hard for any tax agency to prove to a jury beyond a reasonable doubt that the person is guilty of tax evasion. It requires witnesses, receipts of some sort, or tangible evidence that the person has earned income or has income to spend. Getting that level of proof takes a lot of time, manpower, and resources. Even then, the trail may become a deadend.

Will there be any justice here?

Depends on your definition of justice. Should he be punished for evasion? Yes. Should he be convicted? Given the amount of evidence you have provided, no.

Don't they require a license of some sort to do tattoos in your state? Have you thought of reporting him to the agency that supervises tattooing?

If the state has the time and resources to chase down an independent contractor in a niche industry, that would be ideal. But most states don't share the results of their work with the IRS until they have cleaned up. And since the federal government doesn't issue licences for tattoo artists (or most other occupations), this won't go beyond the state level.

In a few instances a state and the IRS teamed up on state licensing issues, where the IRS was able to convince the state taxing agency that the IRS had good audit flags for a particular industry segment. If the the state was willing to withdraw the person/company's license for not being fully compliant with their federal and state taxes, IRS would share the data with the state so they could potentially increase their own tax revenues. These turned out to be very successful since most established small businesses did not want not want to be cut off at the knees.

In the case of the tattoo artist, it would probably not work, since the loss of his license would just cause him to start operating under the table, out of his garage, or on the street, and reducing the price of his work to attract customers.

[AFTP]

Depends on your definition of justice.

Death!

He's gotten away with virtually everything he's done wrong.
Add this to the list.