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What do you think about clients not paying

Discussion in 'Legal Issues' started by christoh, Dec 1, 2018.

  1. #1
    What do you think about clients not paying
    SEMrush
     
    christoh, Dec 1, 2018 IP
    SEMrush
  2. mmerlinn

    mmerlinn Notable Member

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    #2
    If you are getting clients that are stealing from you, I think you should get a different clientele.
     
    mmerlinn, Dec 1, 2018 IP
  3. Spoiltdiva

    Spoiltdiva Prominent Member

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    #3
    I am the wrong person to cheat by not paying. I will go after them in various ways. When all else fails I will arrange for the non payer to be audited. I.R.S. in the U.S., Revenue Canada in Canada, or the RFR in France etc..........Revenge is sweet.;)
     
    Spoiltdiva, Jun 10, 2019 IP
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  4. jrbiz

    jrbiz Illustrious Member

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    #4
    That is an interesting idea that I had never considered before. To understand it better: you would report them to a tax authority as having received free services (due to their nonpayment) and possibly not reporting it to the tax authorities? Is there a mechanism for such reporting? Very interesting approach that I would like to understand better.
     
    jrbiz, Jun 15, 2019 IP
  5. Spoiltdiva

    Spoiltdiva Prominent Member

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    #5
    Anyone that I do business with of course let's me in.( I get to learn a lot about their business) I believe in a personalized approach etc. I simply offer my business associate one chance to ante up. If they don't I e-mail or phone the tax people in whatever country my associate resides in and claim that the offender has been hiding, laundering, not claiming, putting in other people's names etc. I just raise red flags and come across as if my only motivation is that I hate cheaters.
    Tax people love a mystery and always agree to "check them out" while thanking me profusely for "doing the right thing" and "people like you really help us do our job".;)

    Everyone has something to hide in regards to their taxes. I mean who doesn't try to save money? And if audited you are going down....some more than others. Bottom line while they may have tried to save money by not paying me 100%, they ended up losing in the end.
     
    Last edited: Jun 15, 2019
    Spoiltdiva, Jun 15, 2019 IP
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  6. mmerlinn

    mmerlinn Notable Member

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    #6
    In the U.S. if a company wants to preserve a tax write off, their best bet is to use the 1099 laws to their advantage. In general a business cannot deduct expenses and other costs without showing a paper trail that generated those costs. If a business gets shafted by a buyer generally all a business needs to do is show non-payment to be able to write off the expense.

    However, the way the 1099 laws are written, the government COULD deny such deductions UNLESS the business had filed a 1099 with the IRS showing who benefited in the failed transaction. In other words, the IRS wants its pound of flesh, either from the business through denying the deduction or from the entity that benefited from the write off. I do not know how the law is actually applied, but I do know that it can be applied that way.

    What I do know is that credit card companies file 1099s when they write off uncollectable credit card debt. I also know that any prize won over $600 in value is also reported on 1099s. Same with "winnings" in casinos. Same with real estate transfers, etc.

    One other thing of note. Even if you do not have a tax number for entity being reported, just leave the tax number boxes blank, possibly giving an explanation. The most important thing is to make sure that the tax consequences are legally shifted to the defaulter.

    Finally, if the amount is under $600, no report is required, and if reported would PROBABLY be ignored by the IRS.
     
    mmerlinn, Jun 15, 2019 IP
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