Turn in a tax cheat today

If there was anything surprising about the story on the Monmouth County landscaper who was charged with tax evasion last week for failing to report income that cheated the federal treasury out of $100,000 a year, it was that the IRS actually nailed someone. Cheating on taxes is an epidemic, one that particularly afflicts contractors and small business owners, and the IRS doesn't have the resources to bring it under control.

Before moving out of my old house and into a new one recently, I had more dealings than I care to think about with landscapers, electricians, handymen and other specialists in working off the books. Many of them offered me discounts - typically 10 percent - for paying them in cash. When they asked for cash, I told them I only did checks. If they didn't like it, I looked for someone else to do the work.

A 2006 Internal Revenue Service study estimated that the gap between the amount of taxes owed and those not paid was $353 billion in 2001 - about 15% of total taxes owed. Some people believe that number is much higher. An estimated $155 billion of the underreporting is in the individual income tax owed by business firms and the self-employed.

If you suspect someone of cheating, report them yourself. In addition to the satisfaction derived from doing so, you can qualify for a reward of up to 15 percent of the amount recovered - up to $2 million. IRS Publication 733 - http://www.irs.gov/pub/irs-pdf/p733.pdf - details the regulations for claiming a reward.