The Department of Justice works hand in hand with the IRS. Many reasons for closing down an account, Money Laundering is the biggest reason especially with what has happened in Georgia with the DOJ seizing 6.7 million of a big programs money. Second , they issue 1099 to people and if they continued to issue checks to the same people after receiving a statement from the IRS that those clients are delinquent in paying their taxes they will also intervene. I know from the amount of 1099 misc employment statements that I get back that many talent do not pay taxes or even report them. This year I sent out 160 of them and received back approximately 50% of them back. Many of these talents are connected to their own websites that get paid thru Webmaster checks and probably ignore the nice letter from the IRS. Amazingly enough this year not one talent have called to find out where there 1099 is. This year I received the nicest one from the IRS that a talent owes $151,950 in taxes for the years 2007 and 2008. I can no longer issue a check to that person. Maybe they want to work free but when have you ever heard of talent working free.
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