What would you like to do?
Yes, but unfortunately it is tax evasion on your part too.
I had the exact same thing happen to me.
I bought a car for $3500 10 years ago, and the dealership wrote it up at $750.00, claiming it would save me money.
What they really did was two-fold.
- 1. In most states, the lemon law/warranty does not apply to vehicles purchased for under $1000.00 (less in some states). So if you drive off the lot and the motor blows 2 weeks later, they do not have to do anything. Usually they will also try to get you to buy the car "as is" when scamming you like this.
- 2. Lowers the amount of profit that they are showing. I'll show you how it works.
Dealer buys a car for $1000 at the auction.
Dealer puts $200 into the car to make it sellable.
Dealer now has $1200 invested into the vehicle.
Dealer sells the car for $3000 to Bob Smith, but convinces him to allow them to save Bob money by writing it up as $800. Bob agrees.
Now, on paper. The dealership has "officially" sold the car for $800, $400 less than they invested. They can then declare that as a loss.
Basically, it helps them evade taxes on profit. If they pull enough of them, they end up offsetting the profit made on legit or loan deals and showing little or no profit by the end of the year.
The other problem with this is, if you bring this to their attention, the response usually will be "well, you broke the law too by evading sales/excise tax, so I don't think it's smart to tell anyone".
They hold you over the barrel and scare you into keeping your mouth shut, when in all reality, you've avoided a lot less $$$ then they did, and they talked you into it.
My suggestion. If this ever happens to you, go DIRECTLY to the Better Business Bureau and your local Attorney General's office.
NEVER buy a car from a deal "as is".
NEVER try to save a buck by letting the deal sell you the car on paper for less than you're paying.
NEVER sign ANYTHING other than a normal sales form. Especially if it states something about you defering a standard warranty or something.
ALWAYS do your homework about a used car. Get retail and trade-in prices, car and driver reports, etc. Talk to people who have owned one. Search the internet for Recalls.
ALWAYS have a mechanic (someone YOU know or trust) look at the car. A good mechanic will perform this service for $50 - $100 knowing that you will use him/her for service in the future.
ALWAYS shop around. If it looks too good to be true, or they seem way to willing to unload the car, WALK AWAY. It's most likely a problem car.
ALWAYS trust you instinct. If you feel that you're being screwed, you are. Remember something. If you are buying any car from a dealer, used or new, you will be screwed to some extent.
I suggest always buying a brand new car from a reputable dealer. Never buy the "year end" model. Always buy the new model in Febuary or March of the new model year. Never get more than a 60 month term on your car loan. You will owe more than the car is worth for almost the entire life of the loan.
So, in short... If possible, Research, Buy BRAND new, get invoice price info, offer $500 above invoice first, then talk about rebates or monthly payments.
Never let any car dealer show you the cost in the form of monthly payment. Agree on the price of the car, then move on to trade in, down payment, loan rates and monthly payments. Remember, $500 above invoice is usually acceptable. $1000 is normal for luxury cars.
The above recommendation to always buy new and to always buy the current model-year is horrible advice. I just bought a car less than 3 years old with some factory warranty on it for 33% of the sticker price. If you can't inspect a used car, most mechanics will do it for you for $50 or less. Even if the used car does turn up some problems, so long as you ensure that it's in good shape and runs well when you buy it, a used car is going to cost you far less in the long run than a new car.
I personally would never buy from a dealer who would recommend this practice. If they would try to steal money from the government what makes you believe you can trust what they say about the car?
A note on the above reply. Dealers who do this kind of thing hurt dealers reputations. The important thing is take responsibility when buying a car. DO YOU homework and have a fair price in mind. You get what you pay for.
Make sure to inspect the car and my recommendation is NEVER buy new unless you need the write offs or plan to keep the car for life and pay for it upfront. The best cars to buy are generally just off lease or just nearing the end of manufacturer warranty. An extended warranty is the cheapest to get at this time.
Try using sites like eBay where you can see peoples feedback before you buy.
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The definition of tax evasion is the illegal nonpayment of tax orthe underpayment of tax. It is illegal for individuals, companies,or trusts to purposely not pay taxes.
* Tax evasion: This is an intentional violation of tax laws. It is a broad category, encompassing any cheating of the government in taxes. Tax evasion is a FELONY and a …very serious crime. A conviction for tax evasion can carry with it up to a five-year prison sentence and/or fines up to $100,000. * Filing a false return: Prosecution for this crime is appropriate when a taxpayer has provided the government with false or misleading information on the taxpayer's tax return. In such cases, the government does not have to prove the taxpayer intended to evade tax laws. Rather, it merely must prove that the taxpayer filed a false return. Filing a false return is a felony. Punishment for this crime can consist of up to three years in prison and/or up to $100,000 in fines. * Not filing a tax return at all: Failing to file a tax return is the least serious of the three tax crimes. It is a MISDEMEANOR. The consequences for being found guilty is a maximum of 1 year in prison and/or fines totaling up to $25,000 for each year a taxpayer failed to file.
how can i tell if my neighbour is declaring the income he gets from giving lessons in guitar at home as he has not registered his council tax as this You don't. Unless you're …a private investigator you lack the legal rights to snoop. Not only that, since what he is doing is can be classified as a hobby, he is not obligated to report that income most of the time.
Yes Sophia lLorene did fail to pay her taxes on time and was in prison.
Tax evasion is not paying taxes by using illegal means. Tax avoidance is paying the minimum amount of tax using all available legal methods. Because the tax laws in most dev…eloped countries are so complicated accountants are hired to ensure a company pays the smallest amount possible. In some cases giant multi-national firms pay no taxes at all. All quite legally.
Not until after the review....and while you may have to answer some questions before they do, either something caught their attention or there is something like a mechan…ical error that kicked it out of processing, it's even possible the error is in your favor.
Tax evasion is the refusal to pay a percentage of your income tax for personal reasons. some arguments against federal income tax are that it is unconstitutional. There is als…o a community who resist taxes that fund the war. Some of these war tax resisters choose to refuse the percentage of taxes the IRS earmarks for war despite that the IRS will spend a percentage of every tax dollar on military expenses. When our elected representatives are not representing our interests, we can use tax resistance as a direct route for protest. You can resist taxes by filing out a new W-4 specifying that you would like ADDITIONAL ALLOWANCES (up to 10). return this form to your employer and see the effect take place within 30 days on your next paycheck. At the end of the year you will be expected to pay this money back to the IRS (as opposed to filing a W4 and getting you usual tax refund. you can then chose what percent of this money you would like to pay. I suggest that some of this extra money be redirected into your community via charities. Keep in mind that tax resistance is illegal. Whether tax resistance is moral is debatable.
This question is fairly ambiguous, not only because of the vague nature of the question, but also due to the complex nature of the answer. First off, the simple answer is th…at all Americans pay taxes. It is a part of life, and you cannot (legally) avoid it. The question becomes more complex if you are referring to why deductions are made on your tax return. Deductions exist in the tax code to promote certain behaviors. Not every dime that you earn should be taxed, depending on how it is spent. For example, if you are immediately spending your money on an education, it makes sense to deduct those amounts from your income in order to promote the act of getting an education. On the other hand if you use your money to buy a yacht, you will likely have to pay fairly heavy taxes. There are an enormous number of things that you can do to "shelter" your income from taxes, and most of them exist due to the whims of congress. If you want to gain a complete understanding of your tax return, then there is an enormous amount of literature provided by the IRS describing all aspects of the tax code.
tax evasion hampers governmental efficiency
"Detecting" tax evasion can be a hard thing to do if you don't have the legal rights of a private investigator for instance. At any rate, tax evasion is not "detected" in the …sense that there are certain behaviors to look for, evaders are caught.
Pay your taxes.
You can certainly report someone for tax evasion or tax fraud, and the IRS might even pay you a portion of the taxes they collect from the offender as a reward. There is a spe…cial form used to report tax evasion and tax fraud to the IRS: Form 3949a, "Information Referral".
In order to report tax evasion in India, you must contact the Central Board of Direct Taxes (CBDT) . Their phone number is +91-22-2687 4800.
Once someone is found guilty of tax evasion some of the penalties associated with this crime range from being fined to jail time. The IRS and the CID are responsible for enfor…cing penalties associated with tax evasion.
Tax evasion is knowingly and purposely not paying taxes to the government or attempting hide taxable monies. Many celebrities have been charged with tax evasion simply because… their accountants didn't know what they were doing.
The reward for reporting tax evasion is up to 30 percent of the additional tax, penalty and other amounts the Internal Revenue Service collects from the tax evader under the I…RS Whistleblower Program. The IRS Whistleblower Office was created in 2007. See the link below for more information.
That could be for a number of reasons, for instance: Processing time Mistakes in filing Lost paperwork Postal delays Before you worry, remember …that often tax returns don't come back for 4 to 6 weeks. If it has been longer than that, you can contact the place where you filed your taxes to see if there is an update (many online services will show you the status). If you are really worried, you can call the IRS. Just be ready for a wait, because they get a lot of phone calls, especially during tax time.