Would you really do the right thing
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?
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?
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Getting paid in cash and not reporting it is one thing, to try and rip off a client because he drives a benz is another.
Most contractors at one time or another will get paid cash for a job, 30g's is a lot to get paid in cash though.:thumbsup:
Most contractors at one time or another will get paid cash for a job, 30g's is a lot to get paid in cash though.:thumbsup:
I have done 1 cash job, $18,400.
All $100 bills, consecutive series, 1984 dated. (wrapped in foil and kept in the old fellows house.)
Do I know where the money came from, Yes.
The old guy was busted in 1984 for bank robbery and the money was never found.
He served 15 years.
Did I report the income, yes.
Would I work for him again, Hell Yeah!
All $100 bills, consecutive series, 1984 dated. (wrapped in foil and kept in the old fellows house.)
Do I know where the money came from, Yes.
The old guy was busted in 1984 for bank robbery and the money was never found.
He served 15 years.
Did I report the income, yes.
Would I work for him again, Hell Yeah!
Happend all of the time back in the 'good old day's'. With cash, deposit it in increments of under $10K and spread it out as much as you can.
We always called it 'leaking'. $4K this week, $8K the next and then the transfer to the Cayman's.
We always called it 'leaking'. $4K this week, $8K the next and then the transfer to the Cayman's.
Has to be under $5k now.
I may have made a mistake about the amount. It was a long time ago. I've been straight and narrow since those days.
Had one of those a few years ago. Insisted on cash. I insisted on a check to my company.
He offered a check to me.
I insisted on a check to my company.
I insisted. He then asked who had tipped me off to their IRS sting!
I hadn't a clue about that. We spent the next two hours in a conversational discussion about my accounting. Similar to a verbal audit. He said I was OK, wrote a check to my Co. and said I could leave. :blink:
He offered a check to me.
I insisted on a check to my company.
I insisted. He then asked who had tipped me off to their IRS sting!
I hadn't a clue about that. We spent the next two hours in a conversational discussion about my accounting. Similar to a verbal audit. He said I was OK, wrote a check to my Co. and said I could leave. :blink:
Even if the IRS sting dude gave you cash or a check with your name on it nothing could really come of it until you didn't report it. Put it in your business account and put it on the books and it is as good as getting a check made out to your company.
You can take a company check and put it in the bank and not on the books. You have a paper trail, but they have to find it. Just because you take cash on a job doesn't mean you are trying to rip off Uncle Sam. That's the way some people pay. Not everyone has a bank account. Some people actually avoid them like the plague.
You can take a company check and put it in the bank and not on the books. You have a paper trail, but they have to find it. Just because you take cash on a job doesn't mean you are trying to rip off Uncle Sam. That's the way some people pay. Not everyone has a bank account. Some people actually avoid them like the plague.
Would you really do the right thing YEP
I believe in an old saying "It's only a crime, if you get caught." That is my answer and I'm sticking to it.
I had one little job (3k) the guy insisted on paying me cash so he could save the tax. I really don't like the idea, I don't see what is in it for me, and I don't want to screw with the tax man for a few measly bucks anyway. He finally wore me down and i agreed, then he wrote me a check! I said this isn't cash, he said I could turn it into cash at the bank, I said this is a paper trail. He finally agreed to get me cash with much complaining.
I ran the cash through the books anyway.
If you ever get audited for that 30k cash job, you and all your subs are gonna be real sorry. Tax fraud is fraud.
I ran the cash through the books anyway.
If you ever get audited for that 30k cash job, you and all your subs are gonna be real sorry. Tax fraud is fraud.
When people pay me in cash, they tend to expect me to bow down and kiss their feet. I get all the wink-wink and screw Uncle Sam jokes. I always put it through the books.
The only thing I have changed is before I used to tell them I report it all, and always got the most quizzical and perplexed looks imaginable.
Now I just wink back at them and report it anyway.
Wow-all this winking. I hope I don't sound gay
The only thing I have changed is before I used to tell them I report it all, and always got the most quizzical and perplexed looks imaginable.
Now I just wink back at them and report it anyway.
Wow-all this winking. I hope I don't sound gay
Just a little gay, but you're a sparky....we'll let it slide!! :w00t:
I have some customers who pay cash, it all goes on the books. Would hate to have to deal with it later.
I have some customers who pay cash, it all goes on the books. Would hate to have to deal with it later.
When people pay me in cash, they tend to expect me to bow down and kiss their feet. I get all the wink-wink and screw Uncle Sam jokes. I always put it through the books.
The only thing I have changed is before I used to tell them I report it all, and always got the most quizzical and perplexed looks imaginable.
Now I just wink back at them and report it anyway.
Wow-all this winking. I hope I don't sound gay
:laughing:
For all of you who admitted taking money and not telling Uncle Sammy, your thieving ways have been noted. Thank you and have a good day. See you in April.
Right back atchya.
CASH IS KING !!!!!!!!!!!!! It won't kill you if you hide a little here and there
It may not kill you, but it may cost you later.:sweatdrop:
Aside from the $30,00 job being illegal, how would you get rid of the money? If you deposit it I would think it would raise a flag. The only thing I can think of is that it will be a beer fund that would last for years! I've had people offer me large sums of cash before and I had to explain that since I've ordered the products I need to be able to prove how I paid for them. Lol, with my luck the money would be funny money and I would end up in jail...........I'll stick with checks & credit cards.
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