The fun of being evil

[val2525]

I went to the PO box for a client this evening, and there was a notice from the state Tax & Revenue department. I'm thinking all kind of bad thoughts until I looked at the front, it's for a company we've never heard of. This client has multiple companies, but I handle them all and this isn't one of them. So…I open up the letter, it's a confirmation of registration for a CRS # (basically a sales tax ID). Even weirder, the company has OUR PO box as mailing address, and OUR physical address as their address.

I text the client, he has no idea, and no, he didn't start a new company and forget to tell me. I get home, look up the company, and I see the listed Director is a former subcontractor we've used, and the registred agent is a different name, but also a recognized former subcontractor. ("Former" being the key word here, their business practices are part of why they're "former".) For whatever reason, they're using OUR mailing address and OUR physical address, despite not leasing space in the building (we actually took over the lease when these guys defaulted on it to the landlord).

Texted the client, we've decided to stuff it back in the envelope, seal it, and marking it "Return To Sender / Unknown Not At This Address". Meaning Tax & Rev will get it back.

The state Tax & Revenue department doesn't like it when they can't find you, so this entity may very well be changed to 'inactive'. Could make things a wee bit difficult when they try to register for non-tax transaction certificates.

[Shirley U Geste]

That is a good kind of evil.

Won't they be surprised when their dominoes start all falling over.

[val2525]

Yeah, my client was kind of annoyed. He has a very good rep in town and goes to great lengths to keep it that way. So he was not amused when I looked up the company and we found out who owns it. It's not a big deal that they used our PO box, but if they're trying to avoid paying GRT on the old company by starting a new one (as we suspect), my client could get roped in by the state due to the address. State assumption being same mailing address, same physical address, same industry - must be related companies. They'd figure it out upon inspection/audit, but it would be a big hassle.

[Shirley U Geste]

Pretty ballsy of them, but also pretty stupid.

The problem with using someone elses address is they get your mail, and eventually it gets opened and things start falling apart.

[val2525]

Especially if I'm the one opening the mail.

[mykidzmom2]

We once had an employee who "co-signed" us for a car loan...and then defaulted on it. That got turned back on her pretty fast.

[mupcycledcouture]

Good for you! I would have done the ame thing.

[Deleted]

That company is getting what it deserves.

[val2525]

The same client's admin calls a subcontractor this afternoon, asking him if he could give us a price on a garage door she neeeds for a bid tomorrow. He gets snarky and rude with her and says, "I've given you guys bids on 3 or 4 projects now and I haven't received any work from you." She says OK, thanks and hangs up. We tell the owner, he's surprised and comments that in the entire history of the company, this is only the second job that has had a garage/garage door (other job was in Durango).

Then he comments that the sub hasn't bid on anything for him before, but the owner DID use the sub to service the garages at his 6 rental houses.

Note the past tense. Client said with an attitude like that, he'll find another garage door service for the rentals.

Oops. Guess the sub didn't make the connection.

[Deleted]

Love it, who do these people think they are burning bridges and then trying to use the address to form a company.

[Deleted]

I got someone back for being a real jerk once on my old job, and it felt good. The guy really had it coming and I guess he just messed with the wrong person.

[val2525]

Feb 27, 2015 15:16:38 GMT @martha11234 said:

Love it, who do these people think they are burning bridges and then trying to use the address to form a company.

Here, if you have a formal entity (corporation or LLC), you can walk away from any sales tax debt, as debt stays with the entity. The state has caught on to this, and now tracks the owners, officers and directors of dead beat companies and watches any new entity those folks are with. If the new entity is in the same business (and they usually are) and the old debt is high enough, the state will go to court and shut down the new entities, saying it is avoidance of debt. The state also goes after the license of the individual (real estate, medical, construction etc - anything requiring registered licenses). The state's attitude is we're going to keep you from working in THAT industry. The state has a decent win record on both items. That's why we were concerned - using our PO Box and physical address for a 'new' company in the same industry could cast shadows on us with the state. An audit or perusal of records would show we are not related at all, but it would be a hassle.