Full timers warning
For you folks who full time. We were sitting by the fire with the owner of a RV park. ( We were spending the week.) He brought up the full timers helps keep the lights on during the winter. He also...
Forum Discussion
Lynnmor wrote:
I know of people that have all cash businesses and they were investigated down to the coffee cups and ketchup packets bought. The investigation was triggered by an automobile purchased with cash.
Running and minding your own business is frowned upon, sneaking under the fence is encouraged.
If their estimates show the ratio of income to expenses off by 10-20% from typical for the business type, they won't pursue it. So no, if you bought an extra box of ketchup packets, they aren't going to open a detailed investigation because you have a cash business.
If you are off by 50-100% (or more), they have legitimate cause to question if it's a legitimate business and will dig in more deeply. That's when they are likely to question each and every business expense. If it's a cover for tax fraud, that will often turn up bad record keeping and other false information to support the case.
But to the original post...no the IRS isn't chasing down full timers to see where they live. Possibly the local govt but even that is unlikely beyond simply getting an idea of if people are living there.
