You really do learn something every day, I’ll tell you what… Remember last week’s guest post on my friend paying cash for a service and saving $400 in the process? Well, most of you came to the conclusion that the shop owner was probably discounting the rates in order to avoid paying taxes vs. saving on credit card transaction fees (which does make more sense now that I think about it, haha… you smarty pants!), and out of that a fellow blogger shared a tip that makes this situation even MORE interesting than it was.
From Michael of Financial Ramblings:
I agree with several others that say this screams of tax evasion. Credit card swipe fees are a few percent. There’s no way that someone would negotiate down 33% to avoid running a card. If your friend wants an even better deal, he should turn around and report this guy for tax evasion. ;-) Whistleblowers can pocket 15-30% of the funds of recovered.
Have you ever heard of that?? I had no idea you could make money that way… Not that I know many people skipping out on taxes anyways, but still – that could mean some BIG bucks if you catch a huge ass offender! (And would also make for an EXCELLENT side hustle idea too, hehe… Anyone ever done it and want to share their story with us? :)). Michael blogged about this recently when some guy made $104 MILLION turning someone over, so it *is* certainly possible even if it’s rare.
Now how funny/messed up would it be if my cash friend did turn around and report that car shop owner? After getting a crazy discount of $400 AND willingly accepting it? Would there be a chance he could get in trouble too, even if he didn’t know all the way what the situation was at first? Do you think the excuse of “I had no idea he was evading taxes until I anonymously wrote a blog post on it and people told me to report him!” Haha… And then I get a friendly knock on my door from an IRS agent needing my help too ;) That would be fun! And wouldn’t be the first time I received a knock like that either actually… (story for another day).
It also reminds me of an old friend of mine who would always get in trouble whenever she wrote “rent” on her rent checks years ago. She lived in a townhouse with 3 other people (also paying rent), and the owner would just lose his $hit whenever someone forgot and wrote that into the designated area. She always thought it was weird but didn’t realize until later what was really going on over there. Aka the landlord not reporting all this income! Which amounted to at LEAST $1,500 a month, which is pretty ballsy especially since the guy was some big shot at a bank making a killing at his job anyways. Why risk it all, you know? Oh, and also? He ONLY rented to hot chicks, haha… which he could also maybe get reported for?!
Anyways, I thought you all should know about this in case you’re ever presented with an opportunity :) AND want to take it all on too – something I’m not sure I’d want to myself to be totally honest with you. I’d be afraid of reporting a mafia guy by accident or something and then having a bounty on my head! No amount of money would help rescue me from that, yikes…
How about you though? Would you/have you ever reported anyone for tax evasion? And made a stack of cash in doing so? Do you think we have a moral obligation to report it anyways regardless of the financial reward? All good stuff to think about today… And a GREAT reminder to always report your income too! Even if it sucks.
Photo credit: tolworthy
Featured savings tip
You already know that banks pay $$$ for the privilege of holding your money…it’s called interest. But maybe you didn’t know this: that so-called interest can be as little as .01%. If your cash savings aren’t sitting in a high interest savings account that earns you at least 1%, you’re basically saying “no” to free $$$!
Now, obviously the 1% interest you get with a high interest savings account like the one at Discover bank won’t make you rich, but that extra 1% compounded over 30 years can grow into a *big* pile of cash. And if you wanna hit lofty $$$ goals, you should be looking for every edge possible.
Here’s another way to look at it: if you leave $50,000 in a regular savings account, that’s almost $500 you’re just throwing away, each and every year you don't setup a high yield savings account! Will you do 5-10 minutes of work right now to earn an extra $500/year for years to come?
If you said “heck yes”, then you can setup your high interest savings account here to start earning 1% on your cash savings.