tax evasion under another persons name
if i signed for a family member to operate a business and that person didn't pay the money back that i lent them.one year later the IRS called me and said the taxes have not been filed or paid since the business opened now the family member wants me to sign a abandonment letter even though I never had anything to do with the business.They refused to pay the taxes and wanted me to say they have no employees but I want nothing to do with this how can I get out without being responsible for their mess?
1 Answer from Attorneys
Re: tax evasion under another persons name
Your obligation is as extensive as the document you signed and your participation in the business.
If you made a loan to the business and it is not paid, that is the extent of your loss.
If you signed some form of guaranty, then you may have other obligations.
If the business was in partnerhip form and you were a partner (even silent)you could be held responsible for the partnership debts.
If you participated in the business activities and had control over which bills were to be paid and which were not to be paid, you might be liable for the payment to the government of taxes withheld from salaries.
The facts are extremely important and you should refuse to sign any paper unless you have consulted a lawyer.
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