If someone asks for cash only when they do a job, are they evading tax? If so, how does one go about reporting them?
2007-07-17 04:56:04 · 8 answers · asked by ezmarelda 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
Most likely but not necessarily.
If you want, yuo can report them to Inland Revenue (google your local tax office).
They could get into a lot of trouble so think whether its worth it.
2007-07-17 05:01:12 · answer #1 · answered by Marky 6 · 0⤊ 0⤋
People have all sorts of reasons for asking for cash on a job; tax evasion may be one of them. But some may just prefer the cash to people bouncing checks on them.
I would say if this is some personal expense then let the cash slide. If this is your business and you are shelling out thousands of dollars you may want to consider issuing a 1099 to your provider. This proves your expense and their income to the Federal government.
2007-07-17 12:07:13 · answer #2 · answered by yitmoore 1 · 3⤊ 0⤋
While accepting cash is a "red-flag" item for the IRS, merely asking for cash is not in and of itself evidence of tax evasion. It could simply mean that they don't wish to deal with bounced checks or the expense of credit cards. I periodically do consultations for individuals or firms who have a less than stellar payment record. I usually demand payment in cash from them.
Unless you have clear evidence of tax evasion you should keep this to yourself.
2007-07-17 13:45:30 · answer #3 · answered by Bostonian In MO 7 · 4⤊ 0⤋
They may be, or they may not be able to accept another form of payment. Sometimes, people don't have a bank account, and therefore, nowhere to put a check. Most babysitters have cash only rules, and so do many people who do odd-jobs. If you have a problem with it, then refuse to work with the person.
2007-07-17 12:04:06 · answer #4 · answered by Anonymous · 4⤊ 0⤋
There's really no way to know how they're going to deal with their taxes. For all you know, they may report their cash earnings when they file.
I would suggest you let it go.
2007-07-17 12:04:17 · answer #5 · answered by Anonymous · 5⤊ 0⤋
Who knows ?
My recommendation is "don't deal with people you don't trust" (and don't make accusations against people you do trust).
You can be sure that if you report them, sooner or later Policeman Plod will reveal your details and you will spend a lot of time looking over your shoulder and avoiding dark places ..
2007-07-17 12:08:13 · answer #6 · answered by Steve B 7 · 1⤊ 0⤋
Dont pay them in cash. Yes, they are avoiding tax and maybe other things too.
2007-07-17 11:59:32 · answer #7 · answered by hirebookkeeper 6 · 1⤊ 1⤋
Look, leave that between the person and the government!
Pay your taxes and be happy!
2007-07-17 12:00:05 · answer #8 · answered by Starte Christ 4 · 1⤊ 1⤋