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How do you report people who do not pay taxes?

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You call the IRS.  Don't worry though, the IRS actually flags cases and everyone does get caught.

Also, how do you know that they haven't been caught or audited?  No one really broadcasts such information.  In fact, most people brag about how they lowered their tax payments, or got a great deal...and they do this because they are braggarts, and in fact were actually nailed.

Life is too short.  If you tangle with miserable people, you become one.

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The IRS would like you to fill out a form online at their website, or you can call them.

http://www.irs.gov/individuals/article/0,,id=106778,00.html

I think you should consider all the ramifications of your actions before you do and make sure you're doing the right thing.  There are all different ways of committing tax fraud, and I would hate to think I helped you report a local moonshiner for non payment of liquor taxes. 

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I would check the CRA website under enforcement. Select the province and away you go.

http://www.cra-arc.gc.ca/agency/investigations/province_tax-e.html

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How do you report people who run a business that do not report their income or pay taxes on it

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