O/T- What are the chances I get caught doing this?

jwblue · Aug 3, 2007

I sold my car. The buyer asked if I would put a much lower amount than he paid me on the bill of sale submitted to the DMV so he could avoid paying a higher amount of taxes.

Reading the form, there are legal statement saying that I could go to jail and or pay fines for not telling the truth about the odometer reading and sale price. The buyer says he does this all the time and the DMV never investigates.

Does anyone know in the know if I am taking a big risk of getting caught doing this?

IS

juice · Aug 3, 2007

Don't think there's a big risk, but why would you do it?
You're not paying the taxes, but you're putting your ass on the line. I would err on the side of caution here.

Journeyman · Aug 3, 2007

Slim to none.

If the price was too low they would adjust the tax to something closer to book value...the MVA isn't going to waste time on something like this.

You could always claim it was an error, God knows they make enough errors!

jwblue · Aug 3, 2007

juice said:
Don't think there's a big risk, but why would you do it?
You're not paying the taxes, but you're putting your ass on the line. I would err on the side of caution here.

Good question.

I initially said I would do it, but don't want to go back on my word to him. After reading the form I got nervous.

IS

WVU · Aug 3, 2007

zero chance of getting in trouble

fhmesq44 · Aug 3, 2007

Little chance, depends what the form says (whether it asks for FMV or sales price), but a lot of people just put Gift down when it says sales price so you don't have to pay sales tax.

If you ever hear about it, just say the remainder was a gift and no one can prove otherwise.

sunnyblue100 · Aug 3, 2007

I know someone who was caught doing this. At least, do not write a too ridiculous number.

jwblue · Aug 3, 2007

Journeyman said:
Slim to none.

If the price was too low they would adjust the tax to something closer to book value...the MVA isn't going to waste time on something like this.

You could always claim it was an error, God knows they make enough errors!

The Blue Book value of the truck is $5,100.

He paid me $3,100. He asked me to put $500. I don't know if that will get someones attention. He says because it is an older car (1995 Pathfinder), they will let it go. It has really low miles, which needs to be submitted on the form.

IS

Journeyman · Aug 3, 2007

fhmesq44 said:
Little chance, depends what the form says (whether it asks for FMV or sales price), but a lot of people just put Gift down when it says sales price so you don't have to pay sales tax.

If you ever hear about it, just say the remainder was a gift and no one can prove otherwise.

I'm pretty sure in many states you can't gift unless you are a relative.

jwblue · Aug 3, 2007

sunnyblue100 said:
I know someone who was caught doing this. At least, do not write a too ridiculous number.

What kind of trouble did he get in?

He insists that he does it all the time and they never check. That is what is the hang up for me.

IS

Journeyman · Aug 3, 2007

InSpades said:
The book value of the truck is $5,100.

He paid me $3,100. He asked me to put $500. I don't know if that will get someones attention. He says because it is an older car (1995 Pathfinder), they will let it go. It has really low miles, which needs to be submitted on the form.

IS

That is a little extreme I guess but still doubt very much they say anything .

EdSnorton · Aug 3, 2007

The DMV calculates their own Fair Market Value on the car anyway you could put down $1, he is goin to pay the proper tax on the vehicle anyway, only way he would not as if it was a gift from family.

themanej2001 · Aug 3, 2007

1/10th of the book value... not good haha

sunnyblue100 · Aug 3, 2007

InSpades said:
What kind of trouble did he get in?

IS

His problem is somewhat different, the seller wrote a ridiculous number and fake my friend's signature. So they went to the seller, not sure what the penalty is.

sunnyblue100 · Aug 3, 2007

sunnyblue100 said:
His problem is somewhat different, the seller wrote a ridiculous number and fake my friend's signature. So they went to the seller, not sure what the penalty is.

One thing to add, the number the seller put is like 1/10 of the true value, like the one in your case:missingte.

dougstewart · Aug 3, 2007

InSpades said:
The Blue Book value of the truck is $5,100.

He paid me $3,100. He asked me to put $500. I don't know if that will get someones attention. He says because it is an older car (1995 Pathfinder), they will let it go. It has really low miles, which needs to be submitted on the form.

IS

That is a lot extreme....I would be afraid to even put down the actual price he paid being that it's $2,000 below BB value. Just tell the guy you read the form and you're afraid to lie because you might get into trouble. But tell him if he wants to pay you blue book price ($5,100), you'll consider putting down less.

The most important question is why are you selling it for $2,000 less than BB Value?

jwblue · Aug 3, 2007

Ed Snorton said:
The DMV calculates their own Fair Market Value on the car anyway you could put down $1, he is goin to pay the proper tax on the vehicle anyway, only way he would not as if it was a gift from family.

It's sales tax.

IS

WVU · Aug 3, 2007

why did you sell your low mileage pathfinder for $3100?

jwblue · Aug 3, 2007

doug stewart said:
The most important question is why are you selling it for $2,000 less than BB Value?

Thanks for the input guys. I am starting to lean towards putting the actual price. Even if it might kill the deal.

I am selling it for 2K below book value because it is a gas guzzler (13 MPG) and have not gotten a lot of interest. It is also a 1995 vehicle.

IS

themanej2001 · Aug 3, 2007

InSpades said:
Thanks for the input guys. I am starting to lean towards putting the actual price.

I am selling it for 2K below book value because it is a gas guzzler (13 MPG) and have not gotten a lot of interest. It is also a 1995 vehicle.

IS

I'll give you 3,300 for it... if I can sell my car right now haha...

How many miles does it have on it?