Tax free paychecks
My little brother worked for a guy who paid him cash and then at the end of the year claimed him on his taxes. My brother states he was not told this and signed nothing agreeing to this. Could he go after this guy in small claims to get the money the IRS now wants?
1 Answer from Attorneys
Re: Tax free paychecks
Thanks for brightening my morning with this gem.
A contract for an illegal purpose is void. No agreement by a business to pay a contractor "under the table," and, to that end, to file a false tax return, is enforceable. Your brother could actually trigger criminal charges by putting onto the public record his attempt to earn income without declaring it for tax purposes.
Glad you asked before he did something really stupid.
Best wishes,
LDWG
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