Should I tell the IRS about a company or person committing tax fraud?
I am scared. I know the company I am working for is cheating. We sell mattresses and other bed related products to the public, in about 60 stores over 4 states. I know for a fact, the owner is cooking the books, so he can cheat on taxes. Any time he makes a cash sale, he keeps two sets of books: the real set, and the set he would use if there was an audit (does not include the cash he is hiding). What he does is that when a cash sale is made, he trains his employees to enter it in a certain way (different than credit, debit or check). All of the cash money is delivered over to the main office, where the owner and his wife are located, while the checks are deposited by managers at local banks near each store. At the main office, the owner puts all the cash in a safe. I don't know for sure, but assume he takes it somewhere else when nobody is around. There are lots of $100 bills in the safe. The only time local bank runs are made, is only to process the non-cash deposits. In the 2 sets of books he calls the ones that include the cash, the Barkley Report (Barkley is the name of his dog that died about a year ago). The "official Report" or the one that does not include the cash, is simply called the Income Report. I have worked in a couple of his retail stores, but have worked in the business office the last couple years. I notice on the Barkley report, he makes 2 extra copies. It looks like he puts one in the safe with the cash, and takes 2 with him. I am guessing but I believe he probably puts more than $10,000 a day in the safe. After a big sale event, like labor day weekend, I think he put over $100,000 cash in the safe. What he does makes me mad, he is a cheater. I have worked for this company around 5 years, make a little bit over $45,000 a year, and a big chunk of my check goes to taxes. This guy is a tax cheat.
About a week ago, I was taking out the trash, and when I opened up the trash bin, noticed there was probably a month or so of "Barkley Reports" in the trash. I couldn't believe it. I took them home, added them up. The documents were part of last October and most of September. I added up the numbers, and I think this guy put away around $480,000 in cash.
I am mad. What can I do? I need my job and don't want to get fired? Is there a tax whistleblower program available, so I can get a reward for telling on this guy? I don't want anyone to know that I am doing this? What are my options?
This is an illustration of a typical report we receive. The name Barclay is not the real name. The mattress business is not the real type of business.
