Legal Question in Tax Law in Louisiana

Employer paid in cash-what can I do now?

My employer paid me cash last year. Now I need to show my earnings to the IRS for my tax EIC. I need to know what recourse I have if any and what to do next. I called my ex-employer (I was fired or ''let go'' in Oct.) and told him that I don't show enough income for last year. His answer was that he didn't think there is anything he can do. Of course it will cost him some taxes so I wasn't surprised he was unresponsive. He did say he would contact his book-keeper to see what could be done.

He paid me by check at the beginning of the year but for 7 mo.s by cash in an envelope. I had no job security and didn't know from week to week if I would be ''let go'' or not.


Asked on 1/30/05, 4:12 pm

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Employer paid in cash-what can I do now?

Did you keep a record of your income? Whether you were paid by cash or check, you need to report your income on your 1040. Your employer should be giving you a W-2 reflecting your income. If you and the employer do not have the exact records, you will have to estimate the income.

For more tax answers see my web site at:

http://www.taxesq.com/

I hope this helps!

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Answered on 1/30/05, 8:31 pm


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