Need help on this one.....Concealing Income


#1
  1. You can request copies of the previous years tax records and income. If necessary you can subpeona these from the company. The courts normally go by previous records instead of what is going to happen. If you can show the courts that this letter was received after he was notified of the modification, then you should be in the clear and he will have to show proof that this has been in affect previously.

  2. Not sure on this one. My ex was 49% owner of a business but he was paid out as an employee…not sure if there’s a way to show other than the company’s records of ownership.

  3. I’ve read on another post about someone hiring someone to evaluate the value of a business but I am afraid that I do not know how you can track income that is hidden other than having his financial records looked over by an Accountant.

  4. You can have child support modified every three years or with a 15% change in income or lifestyle. I think that even though it’s not a change in income finding proof that he has lied about his income would be a valid reason for filing again.


#2

Thanks stepmother for your reply.

The problem I had when trying to get tax return was he said he had not filed taxes in five years…He had a w2 that said his income last year was 162,000 but then he had a letter dated May (right around the time I notified him of the modification) from his “supposed employer” saying his income was being reduced to 100,000 per year.


#3

oh and the judge basically said I would have to make a case that he was intentionally hiding income for them to impute based on the 162,000.

The judge said this is hard to prove…


#4

Hopefully some of the others have some suggestions for this. How do people get away with not filing taxes?? I just don’t understand how some people can be so sneaky. Can you request his other financial or bank records for the last year? Surely that would show that he’s depositing or investing more than the amount he’s showing as income.

Were tax records ever requested in the original ED or custody hearing?
You said that he had a W-2 for last year…that means that his wages have been filed with the IRS. That’s what the W-2 is. It’s a means for reporting wage and tax to the IRS for your employees. Even if he had no taxes taken out and has not filed in 5 years, a fact that the IRS would be very interested in, the IRS has a record of his wages every year if he has a W-2.
I suppose there was a valid reason behind this drastic reduction of his income in the letter, and that the judge did not question this reason or the letter?

I wonder if Child Support Enforcement has resources that the general public doesn’t have in finding out this type of thing…


#5

Believe me he’s very sneaky…I even think he’s gone so far as thave his business incorporated in someone else’s name so he can say he’s not the owner…I just have to prove it! What I assume is his business profits about 10 mill a year and he is listed in several places as the President of said company…so it’s just been difficult trying to find a way to prove it.

As for not filing taxes, I don’t know how he has gotten away with that one. But I have confirmed that he indeed has not, however, what I think is his company has filed.

Can you request his other financial or bank records for the last year? Surely that would show that he’s depositing or investing more than the amount he’s showing as income.

I’m not sure how to go about this as I don’t know his bank, etc. Any suggestions? I guess I could request the company’s records but not sure if that would show anything.

Were tax records ever requested in the original ED or custody hearing?

They were requested like 8 years ago but he took a job with his father so he only reported like $38,000 which was not true then. It’s been a long history of this kind of deception.

I suppose there was a valid reason behind this drastic reduction of his income in the letter, and that the judge did not question this reason or the letter?

It was not questioned by the judge. It just simply said that because of cutbacks within the company they were reducing his salary. It was extremely obvious from the date on the letter what was going on.

I wonder if Child Support Enforcement has resources that the general public doesn’t have in finding out this type of thing…
I’m not sure…

Any advice or help for methods to help uncover concealed income would be very helpful.


#6

If he has NOT filed his taxes, you can report him to the IRS. Go to the site and enter the information. For child support, you are entitled to his income tax returns if you are requesting modification. Issue your own subpoena if necessary. Easy to do. The clerk will sign it. If he is paying you alimony, the IRS compares tax returns and usually will quickly pick up on this via social security numbers! If his company is doing something illegal, report it too! Hard to find hidden income, but keep trying! Stepmother is right. The Court usually bases decisions on what is rather than what will be. However, in my case, the Court based its decision on speculation only. That is unusual, but mine was an unusual case. Corruption. Don’t let this happen to you! Don’t! Do whatever you have to do and my thoughts and blessings are WITH you! Good luck!


#7
  1. There may not be any records that prove the decrease was intentional, however you can depose his employer and find out the circumstances of the decrease and why it was made. You can also request his pay stubs, bank records, credit cards, utility bills etc. If you can prove he is spending more than the claims to earn then that makes a good case that he is concealing income.

  2. You can look up information about the company on the secretary of states webpage, that should give you information about the ownership of the business. You may also get additional information by sending a request to him for copies of the companies tax returns.

secretary.state.nc.us/corporations/

  1. The professional you will need to review the records depends on how skillfully he has hid it. Sometimes your attorney can stop the anomolies, othertimes you may need a forensic accountant.

  2. No, you can only modify child support from the date you requested the modification forward.

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#8

This is my situation: I had a child support order from six years ago that had never been modified. I recently went to court for modification. The original order was increased. However, during the modification I became aware that there was a very strong chance my x was hiding income. When I filed for the modification the x suddenly obtained a letter that his income had to be decreased $60,000 per year. Also during the modification my x stated he was only an employee of his company which I am 99% sure he owns.

My questions are these:

  1. What things can I do to prove his reduction in income was intentional simply because I was modifying child support? What kind of records do I need to get?

  2. How can I prove if the company is indeed his?

  3. What kind of professional will I need to review any records I get to see if the x is hiding income?

  4. If I filed a modification this year, but can prove he lied about his income can I have it modified again before 3 years?