Taxes for people who won't give valid TIN numbers.

by BackToThe00s. Posted on Sep 14, 2020    7    14

So backstory, my father has a small business. He recently received a letter from the IRS saying he needs to pay the taxes for the individuals he listed as employees. One certain employee (who made a fairly great amount for the years he worked) refused to provide their TIN number for both 2018 and 2019, accusing my dad of conspiracy to screw him over. My dad being uneducated, illiterate, and immigrant that he is, didn't know the fall back of letting himself get walked over would be. So the question is how can we avoid pay 24% of that employees taxes without their TIN number and SS? We have a name, number, address, and all other employee records except those two crucial numbers. Thank you for all advice.



Where I live, (and this probably doesn't help you, sorry) it's not illegal or anything for an employee to not have, not provide, or refuse to provide, a tax identifing number.

However, any financial provision must automatically withold 50% tax rate (which is highest)

This includes banks, share trading, employment, social benefits.

I don't know how that with held amount eventually gets tagged to the right person....

BizCoach 1

I doubt you'd take out your own appendix using advice from us randos on reddit. Same goes with this kind of question - get a CPA or a lawyer who can give relevant advice for your dad's total situation and the location he's in.

  BackToThe00s 1

Well while I agree with you, I just need a starting point to know where to look because I'm stuck between a rock and a hard place because even though I am not the one who should be prioritizing this matter, he still is my dad and he's a very stubborn man who doesn't believe in lawyers and basically anyone who society deems as "deceitful." So I'm not really asking for a step by step guide, I just need advice or useful info so I appreciate your advice and info!!

BizCoach 2

Many lawyers will give you a 30 or 60 minute consultation for free. It may not include answers but will give you an idea of how they attack the problem and if there's a fit chemistry-wise. If your dad doesn't want to involve a professional for something that clearly needs one, perhaps there's nothing you can do to rescue him. Sorry to be harsh.

  BackToThe00s 1

Man if you think you're being harsh you shouldve seen the scolding I gave my dad!! But thank you so much for this helpful information!!!

MomDontReadThisShit 3

Did he ever withhold and pay his portions of the employees taxes? If the employee falsified documents I don’t see how that’s your dads fault. If there was no paperwork or employment agreement then maybe this “employee” was a contractor all along. Best of luck dealing with Uncle Sam here. He’s pretty serious about getting his money.

ClickityCoder 7

So you didn’t file an I9 when hiring the employees? That right there would have given you their SSN. Aside from tax fraud you’ve got a few other things going.

  BackToThe00s 1

Well being honest, I don't know the exact details of this situation, just the basics. I'm just seeking advice or a starting point on where to begin working from but for this certain employee, he does not have a Social Security.

Sly_Wood 4

Even as a kid I grew up watching movies like Coneheads where the boss asks for a SSN. He keeps asking. Then Adam Sandler comes out of nowhere and gives him a SSN and new identity. I had no idea what was going on. I was like 8. But this is like basic basic business management. I don’t understand how you can have several employees yet one didn’t provide a SSN? Why even report the employee? I mean if you’re that inept at reporting things then why not just pay all your employees under the table? It’s still illegal as hell but it’s infinitely smarter than not collecting proper ID and reporting it.

Honestly this is just really bad. You need a lawyer or to just pay the taxes. Either way you’re paying for something.

  BackToThe00s 5

Yeah as more info comes out I'm crapping my pants at the reasoning behind his decisions. This isn't looking great for him.


You’ll need a lawyer for this one. . .

  BackToThe00s 6

sigh I'll go draw the pentagram....

Minimum-Cheetah 6

Did someone draw a pentagram? Oh....sorry...I’m not a tax lawyer. You need to be more specific. Next time write “TAX” inside the pentagram.

  BackToThe00s 9

Well i just wasted my last goat for the year..