A family member is a %49 co-owner in business A and believes his partner is embezzling money from this company, to his other company in which he has sole ownership. There is little proof of this because the suspected partner refuses to hand over certain documents and information to the other co-owner. Will reporting this suspicion to the IRS cost anything and will this cease operations of the company? Also, is there a better alternative to this situation?
Criminal Defense Attorney
It sounds like you want this issue investigated, but have little or no money with which to do it. If that's the case, you may want to go to the local DA's office and ask them to investigate it for you with a view towards having the relative arrested for embezzlement. They have Subpoena power and if they're interested in your case, they will do whatever must be done to get the job done.
I suggest you hire an attorney to sue the family member and prove the theft. I hate involving any authority because things can always go wrong and before you realize it, they're looking at you instead or together with the other person who you want them to look at. But at least the authorities don't cost any money initially. Yet it may cost you more in the long run. Be careful of who you involve.