[snargaluff]

one of my previous experiences was a job where I was paid in cash…

So if a big 4 does a background check it won’t likely show up…

Will this be a problem?

If so, what should I do?

Thanks for any advice in advance !

[Tripp11]

Was it just an odd summer job while in school? I wouldn't worry about it. If they ask about it, I would tell them the truth and also tell them you appropriately reported the cash income on your tax return. 🙂

AUD - 93
BEC - 80
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FAR - 83

[Anonymous]

If you reported the income on your tax return (as Tripp11 alluded to), then say that you did the work as a contractor rather than as an employee, because that's the only way they could've legally paid you cash and not paid their portion of taxes etc. on it. If you didn't file taxes, then there's no way it was legal (unless it was under the requirement to file self-employment taxes), so it'll be more difficult to explain.

I had a cash-pay job as a youngster and listed it on my resumes when I was first getting more “real” jobs, but dropped it as soon as my resume could stand on its own two feet primarily to avoid this type of situation. However, at the time, my thought was that if they wanted to check up on me, they'd probably call the employer…and the employer would verify my work, so it should be OK even without the legal employment paper trail.

[Anonymous]

I am in the same position, my 1st job was off the books and I didn't know that this was not allowed!

I didn't report it on my return..I didn't know I was supposed to until I took tax class (I know how un-accountant like of me)

[Anonymous]

If it was recently, you can amend your return to include it. Was it a full-time job or a small part-time thing?

[Anonymous]

Yes, it was in 2009-2012…It was a small part-time job tutoring a child, about 2-3 hours a week at most. My first “job” when starting college.

I don't think I made more than the $400 per year amount to file a return (I remember such a rule from tax class, please correct me if I am wrong). It was just as a favor to a tenant (I should have just left if off my resume!)

[Anonymous]

*I think it would be more than $400 in 2010/2011 because of being a full school year..2009/2012 were not full years

[Anonymous]

It sounds like the income was little enough that the back taxes plus penalties etc. would be a small price to pay for being sure you're legally safe. $400 is the figure I remember as well, so I would assume that for 2009 and 2012 you're safe. Did you file taxes on other income in 2010 and 2011? I want to say that you can only amend your taxes for 3 years, so your 2010 is probably too late to amend and include the income – not sure what you should do for those. The 2011 should still be amendable. However, if you didn't file taxes in either of those years, then there's even more need to correct this since there's no statute of limitations for un-filed tax years, unless I am completing remembering wrong. If you made $600 in one of those years, you wouldn't owe any income tax, and if my memory of how to run the figures it right, you'd owe less than $100 in taxes – perhaps another $100 or at most $200 in penalties, if even that much, so somewhere around the price of one exam to ensure that you're in tax compliance going forward. I'd definitely consider calling the IRS and determining the best route to proceed.

Not trying to be all white-knight or anything, just that personally, I'd far rather deal with something like this now than to have it come up at the wrong time in the future and cause major trouble. That being said, I'm sure a LOT of people have worked cash-paying jobs with no clue that they were supposed to file anything and it's never been a problem. However, in our industry the risk is far greater than monetary penalties, so I'd be loathe to risk it.

[Anonymous]

Thank you Lilla! I will contact IRS today to have this sorted out. I did not file taxes in those years, I was a dependent..As you said, I think this will complicate things even more. I will let you know what the IRS says 🙂 Thank you for your help!

[snargaluff]

Okay thanks.. So if they ask should I say just call up my supervisor and she can confirm that I worked there?

If I don't mention anything about cash won't they get suspicious lol

[Author]

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