A friend was a W-2 employee in NYC until 6 weeks ago - He's now receiving unemployment. He'll soon be licensed and "working" as a real estate agent in NYC, earning as an independent contractor. Is it possible for him to remain "invisible" until the first commission check (which may not come for 2-3 months)? He plans to be actively and vigorously seeking work and be fully able and available to accept offers to work while pursuing this RE "hobby".
Does the only record of employment come through records of payment through 1099? Are these records specifically dated or do they simply record the year? Does the RE broker report start date to the IRS, or does that information surface only in the event of audit?

Yes, he understands about possible fraud, repayment and penalties. The questions above are quite specific. Thank you!

If your friend decides to do this "fraud" pursing his hobby, he will have to not only repay the UE benefits, but will have to pay a hefty fine and could possibly land in jail. Each week that he says to the folks at UE that he was not employed or self employed is considered one count of fraud. Quite possibly he could end up with 16 counts of fraud if he doesn't get a commission check. Have him chew on the 16 counts of fraud.

Twinkledooter's points are well taken, but this is REALLY a LAW question, NOT a tax question.