How can I report an individual who has a crafting company out of their home without a vendor's license and is not paying taxes? She uses PayPal and debit to charge her customers so there is a pattern of her selling the crafts.
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Does this individual's work cause problems in your neighborhood?
If so, you can report suspicious or fraudulent activity to your local police and they will investigate.
As to a vendor's license, they may have one posted in their house that no one knows about as there can be legitimate 'home' businesses in a residential neighborhood. Of course, there are rules that have to be followed but home businesses can be legitimate.
You can always contact your city/county offices to report them for doing business without a license. The report has to be in writing but can be anonymous.
As far as reporting them for not claiming this income I guess the first question would have to be: how do you know this?
There are numerous ways to have knowledge of this so that does not have to be a problem but it would have to be addressed.
You can report someone anonymously but the IRS requires 'certain' information before they will investigate a report.
The IRS has forms that must be completed when someone files a report and, usually, it will take months/years before a claim is finalized.
The last IRS report that I read stated the IRS cannot investigate reports that involve small amounts of money because the expense to investigate any report is very high.
One IRS article stated a report should be of someone/a company that involves at least $200,000. These reports are usually done by what is commonly known as 'whistle blowers'.
If this happens in the USA, there is a Form 3949-A (Information Referral PDF) to report tax fraud:
www.irs.gov/
If she is not paying taxes, you could notify the IRS.
This is a job for legal authorities (IRS) , that's all you can do legally, anything else may end up in some type of conflict.
Don't do this to someone who's making a few crafts to help pay the bills during a time of hyperinflation, sickness, and threat of war.
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