Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification.
The biggest way is that you would be responsible for any taxes, penalties, and interest for any monies that you received in cash and that you didn't report on your tax return.
The website is showing you are offline so I will exit so I can assist other customers. Please feel free to ask any follow up questions that you have in this thread. However, please do not issue a rating until our interaction is complete and all of your questions have been answered.
I know that the IRS can give rewards to those who commit tax fraud and tax evasion. Is there a possibility that the IRS would forgive the money that I owe in exchange for turning in a "bigger fish?"
There is a possibility but I can't say how likely.
If you want to pursue it then the best way to do it would be to hire a lawyer who does federal tax work or federal criminal defense (because they would approach the Justice Department) to approach them about it and see what they said.
That way your identity wouldn't be revealed until you had a deal in place.
What are the chances that the IRS would pursue all the employees or just the "boss"
Without a deal they'd pursue everyone that owed.
Wow, that's making a lot of enemies.
Yes, the IRS isn't known for letting money slip through their fingers by pursuing just "the big guy".
what are the statute of limitations on tax evasion / tax fraud?
In California for state
It can be up to ten years depending on the exact facts.
However, that is from the time a correct tax return and correct tax info is filed, if it is never filed then the statute of limitations never runs for CA or federal.
False or inaccurate tax returns were filed.
It doesn't start running until correct ones are filed.
Assuming fraud was involved. If it was just a mistake on the tax returns it is usually 3 or 6 years.
Would the boss be looking at prison time or just paying back taxes?
It depends on the facts and the IRS, some people just pay taxes and some are pursued criminally. There doesn't seem to be a lot of rhyme or reason to why they pursue some and not others.
I guess it may have something to do with the extent of the tax fraud.
That's part of it but not all.
or does it just seem random?
It seems random. I think it depends more on the agents involved.
I see. So it could go either way. Thank you for your help. My next move will be to seek a tax attorney.
You're very welcome and best wishes to you on this. Please don't forget to leave a Positive Rating (of course I’d suggest Excellent!) so I get credit for my work.
I'll exit now to assist others.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).