My boss has been paying me and my co under the table for overtime and now I'm being audited. Is what they did legal? If not,how do I report them?
Eight answers:
Badge203
2016-03-11 01:43:45 UTC
Paying you under the table is not illegal as long as you are paying taxes on that money
And you thought it was okay when you were getting this money, but now that the IRS is snooping around NOW all of a sudden you want to report the employer
And ignore the answer that that clown told you to act stupid, and blah-blah-blah, that will not work so don't even try that acting stupid routine, you will still owe the taxes, plus penalty, plus interest for not claiming that money
If the employer is not paying social security taxes, and deducting income tax then he is also in violation of the law, so all of you will be paying a lot of money to the IRS, but I find it amusing that as long as you thought you were screwing the IRS it was okay, now you get caught and you want to rat on everybody
STEVEN F
2016-03-11 03:44:54 UTC
What Badge203 MEANT is correct, but what he SAID contains a critical error.
Paying 'under the table' is DEFINED as not reporting the income and withholding taxes, which is illegal.
Paying in CASH is legal, which is what he actually intended to say.
?
2016-03-11 04:15:50 UTC
You were always required to report that income, no matter how he paid it to you. It wasn't legal for them to do, but it wasn't legal for you to not report the income on your taxes either. The two things are separate issues.
anonymous
2016-03-11 01:25:28 UTC
If you are being audited you must report your employer. Play dumb and say that you had no idea this wasn't the way companies paid people and you trusted your employer and HR to be paying you correctly
WRG
2016-03-11 06:40:12 UTC
No it isn't legal. Report it to the IRS and since you are being audited you will have that opportunity.
Squid
2016-03-11 01:35:27 UTC
They gave you cash. That's not illegal.
If you didn't pay income taxes on that income, then you are in violation.
If they didn't pay SS and other deductions, they they are in violation.
But just the fact that they gave you cash doesn't break any laws.
Enough Trolls
2016-03-11 01:16:31 UTC
You are busted - the audit has been announced. What you are looking for now it mitigation. Confess, provide full details and hope they will go with dropped or reduced charges in return for you providing evidence against your boss.
anonymous
2016-03-11 01:23:46 UTC
it's not legal and it must be claimed that income on your tax returns
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