Legal Question in Business Law in Virginia

is it legal for the owner of a business to ask an employee to give them $10,000 in cash out of the daily deposits?


Asked on 6/03/10, 5:17 am

2 Answers from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Hard to say under these facts, but if it's a scheme for "skimming off the top", i.e., taking profits upfront to avoid taxes, the employee might be subject to a charge of being an accessory to this crime (in my opinion) under the facts described.

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Answered on 6/03/10, 8:41 am
Kevin B. Murphy Franchise Foundations, APC

As the other attorney says, this is a very unusual situation, given the daily amount. It smacks of tax avoidance. I'm sure the IRS would like to investigate what's going on. You certainly don't want to be an accessory as the other attorney mentioned. If memory serves, I believe the IRS has a reward program for tips that bring offenses to light. Consult with an attorney in your area for specifics about contacting the taxing authorities (the IRS also has a toll-free number).

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 6/03/10, 9:10 am


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