My question involves criminal law for the state of: California DMV
I have a friend who flip cars and make 20k cash a year on the side. I envy him and he is nice enough to teach me how - What cars to look for etc. However, I was concern that he is tax evading. Here's why:
He buys a car for $3,000. He fills out the pink-slip to his name as the buyer. He never goes to DMV. he then fills out a form (duplicate / paperless title) that states he's now the owner (which is true - he bought the car) He sells it to a buyer for $4,000, who takes the pinkslip and forms to DMV and successfully transfer ownership.
What I am concerned about is he never paid tax. I called DMV and confirmed that the process he took is legit. However, they said a person is only allowed to sell one car a year. But i know of normal people that sells more than one.. My friend sells 20.
I would like to do the same if legal.
Thank you all.

