I was reading over the post by the swimming pool guy from California. I don't have an opinion about his situation. Truthfully, I don't really care.
But I got to thinking about different things that happened while I ran the business. I can honestly say that I never intentionally tried to cheat any customer out of a dollar but I was in a couple of cheating situations.
Both involved being paid in cash.
First time a business owner who I knew to be a crook hired me to reside his house. No way was I going to start it without money so he reluctantly gave me a sizeable down payment that covered all material and some labor. That way, I knew I'd come out at least even on material.
Time to settle up after I finished and he came out with a sack of money and counted me out around 3,000 dollars in five, ten and twenty dollar bills. After we finished counting, he commented that he bet I was wondering where all this money came from. I knew exactly. It was money he'd taken in at his business that never made it to his books. He said it was birthday money he'd saved over the years. Right. lol He told me not to put this on my books so I didn't.
Another time, actually in about the same time period, a man hired me to totally remodel and add on to his house. It was about a 30,000 dollar job.
He wanted to know if he could pay me in cash. I figured he meant by check so I told him sure, no problem, but he paid me in 100 dollar bills. All fresh and crisp with different serial numbers.
He told me he had sold some livestock for cash and couldn't put the money on his books and would appreciate it if I wouldn't mention him in anyway on my books, so I promised him I wouldn't. In turn, I paid all my subs on the job in cash, off the books. Everyone left happy.
I don't feel bad about Uncle Sam not knowing everything that goes on in my life. I figured I paid enough taxes already so what they didn't know about they wouldn't miss. I got audited three years in a row and ended up with a giant tax liability that was very hard to get paid off.
I was just wondering if any of you have been involved with customers that paid you with cash that you know they were hiding from the government?