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    phany's Avatar
    phany Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 3, 2008, 01:09 PM
    Can I get in trouble if I don't pay taxes
    If they pay me in cash with out paying taxes can I get in trouble or the company can get in trouble?
    NowWhat's Avatar
    NowWhat Posts: 1,634, Reputation: 264
    Ultra Member
    		  
    #2

    Nov 3, 2008, 01:19 PM

    Well, yes, you can get in trouble for not paying taxes.

    At the end of the year, is the company going to issue a 1099? Are they treating you more like an independent contractor? If so, you will have to pay taxes on that money and I would recommend putting money in a savings account so you are prepared at tax time.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Nov 3, 2008, 02:56 PM
    You will BOTH get into trouble if you do not pay taxes on these cash payouts and the IRS (or the state tax authorities) find out about it.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Nov 4, 2008, 02:44 AM

    It does not matter how you are paid; you must report this income on your tax return.

    If the employer is not withholding taxes, that means that you are working as an independent contractor. You must file tax return if your income is $400 or more.
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