Cash Jobs

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Rewire said:
We did a panel change out at the local gentelmans club and I was paid in cash ,one dollar bills to be exact.
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I hope the panel change-out was all you did. :grin:

PS, there is no such place as the 'dark side of the moon'.
 
Before I changed the name of my company to Gold Star Electric I had considered changing it to Cash Electric. That way when customers would ask "Who should I make the check out to"? I could immediately say CASH". Would this constitute running an illegal operation ?

Seriously though, no one on this forum will openly condone taking cash and pocketing it for any work you do. But, the fact remains - it's done all the time. Always think about what your doing and who you're dealing with. If you're doing any work where a permit is required and there is a paper trail back to you, make sure you declare all the income. If you're installing a receptacle for a neighbor and, as a favor, you only charge him $50.00, put it in your pocket and walk away. You can be rest assured that the IRS isn't looking for someone who pocketed $50.00. By the same token, if you land a job doing the electrical work for a large office building, go to the supply house and charge all the material against that job and then pocket the cash you might get from that job you're taking a big chance that the IRS may or may not be knocking at your door.
 
There isin't anything wrong with taking cash and putting it in your pocket you just have to claim it. have i done a small repair as a favor and someone insist I take $20. Yes. Have I failed to claim it? Claim what a gift, I don't think so.
 
frogneck77 said:
Im trying to figure out, hypothetically speaking, If I were to withdraw say $100 a week from the ATM for 3 years, then deposited $15,000 cash in the bank, is that illegal?
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as long as you fill in the correct reporting forms it is not illegal.
 
480sparky said:
People often ask me if I accept cash. Sure I do.... it states right on every bill "This note legal tender for all debts, public and private." I am legally bound to accept it if offered.

I have been asked how much it will cost for a certain job, as well. My response is, say, $800. Asked how much the cash price is, it's still $800.
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Actually, you are not required to accept cash, or any other means of payment. However, you are required to accept is in payment of a debt and once you have performed the work thats what the work has been converted to.
 
480sparky said:
I have been asked how much it will cost for a certain job, as well. My response is, say, $800. Asked how much the cash price is, it's still $800.
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Just say, "Oh, that is the cash price. Would you prefer to use a different payment method?"
 
i like the green stuff myself.

Idiocracy_Money.jpg
 
Small business and self employed contractors are very high on the IRS list of returns to be thoroughly checked and audited. At my last audit I was told by the auditor I could be expected to be audited every 3rd year.
I have also read that when audited the agent will not give up digging until he can find some error causing you to pay more taxes. I have drove them nuts, because they cannot find any thing......and that is because I even report the very small cash payment.
A friend of mine was audited about 10 years ago, about a year after one of my audits. I'd even told him all about it, and the records I kept to prove every thing. He didn't listen, got audited, and ended up owing them $20,000 in back tax and penalties...and they only audited 1 year of his tax returns.
I wouldn't dream of trying to scam the IRS. If they audit someone, and even thought any income was not being reported they could claim it was intentional (criminal) and audit every return you ever filed. If you are in business for yourself do not EVER throw away any of your records.
If you really make them mad they do have a program where you you can get work release from your cell while making payments. Thats if you get a year in the county, rather than a federal big house. Oh, and your family will get enough to live on barely, and you will also have to pay board and room at the county jail.
 
RHJohnson said:
Small business and self employed contractors are very high on the IRS list of returns to be thoroughly checked and audited. At my last audit I was told by the auditor I could be expected to be audited every 3rd year.
I have also read that when audited the agent will not give up digging until he can find some error causing you to pay more taxes. I have drove them nuts, because they cannot find any thing......and that is because I even report the very small cash payment.
A friend of mine was audited about 10 years ago, about a year after one of my audits. I'd even told him all about it, and the records I kept to prove every thing. He didn't listen, got audited, and ended up owing them $20,000 in back tax and penalties...and they only audited 1 year of his tax returns.
I wouldn't dream of trying to scam the IRS. If they audit someone, and even thought any income was not being reported they could claim it was intentional (criminal) and audit every return you ever filed. If you are in business for yourself do not EVER throw away any of your records.
If you really make them mad they do have a program where you you can get work release from your cell while making payments. Thats if you get a year in the county, rather than a federal big house. Oh, and your family will get enough to live on barely, and you will also have to pay board and room at the county jail.
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And when I get out I will move to China Home of the Free from the IRS. And with an economy that is growing at a rate of 17%+ yearly I shouldn't have a hard time finding a job.
 
satcom said:
You can withdraw what ever amounts you desire, but as soon as you deposit anything over $9999.99 in one transaction you triger the IRS for a watch list.
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Actually the trigger is $10,000 OR a pattern that seems to establish you are trying to dodge the $10,000 rule.....$6000 today, $6000 tomorrow, etc.

c2500
 
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