The Internal Revenue Service Should Audit Every Texas Based Tow Company for 941 Fraud

941 Tax Fraud is Rampant in Texas

941 Tax Fraud is Rampant in Texas

There is no doubt that 941 tax fraud is being committed by predatory tow companies in Texas and it’s always the employees of the company you suffer the most.  The United States Treasury is basically being robbed of Federal Withholding Taxes by dishonest tow company owners who robbed the public of their hard earned money, creating financial nightmares for most.

Here is the scenario:

Over 50% of tow companies pay their driver 1099 Income instead withholding taxes, but if you’re working for a company, driving their tow truck and required to work specific hours, that person is considered an “employee” by Federal Tax Laws.

Then comes the issues the paper trails of financial kickbacks and bribes tow companies write off their tax returns as the cost of doing business. (they are basically racketeering and money laundering) But when auditing their business records, recent audits revealed in some instances, all employees, dispatchers, storage lot employees and wrecker drivers were paid 1099 Income, which raised red flags among auditors.

The Federal Government really needs to step in and address the “bribe to play” benefit between the parking facilities and tow companies, as some property management companies have been nabbed submitting paid invoices from their tow company with their tax returns, but no check for payment was ever found, a clear sign of fraud, according to spokesperson with the IRS.

HUD funded apartment complexes receive federal funds, which subjects the property managers to an FBI investigation for HOBBS ACT violations and Federal Income Tax Fraud.

If these predatory tow companies expect the motoring to be robbed their vehicles and money, then they should be required for obey the Federal Employment Tax Laws to pay the 941 tax payments for their employees, instead of forcing their drivers to accept 1099 Income should they desire to be employed.

Download this “form”, complete and mail it to the IRS to report tow companies paying their drivers 1099 Income and collect an award, based on percentage of what the IRS collects through asset seizures and collection.

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