Tax question on getting paid under the table

RichUser said:

If that's the case, then your asking for a bigger shit storm.

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Dude, you don't have to give them your SSN. You do if you want certain features like more than 3 bank transfers a month. PayPal is NOT even close to a bank, it is a money transferring service, they don't report crap because the don't have to.

They will Catch up with you, It may take a while but if you really start to make bank they will. I know people that got yanked in because they were not reporting tips when they were parking cars. Pay the taxes. If your not 1099'ed then understate it a bit and call it misc income. Just stay under the radar.

First, I think the OP is smart for wanting to pay taxes on his income, whether or not the IRS has a record of said income.

Second there are lots of reasons for paying taxes on your income, even if you obtain it through shady or illegal means. What did they eventually convict Al Capone of? Tax evasion. It didn't matter to that he was a gangster --- if he had only given the government its cut, they wouldn't have been able to nail anything on him.

I know of drug dealers and illegal immigrants who pay income taxes. Some illegal immigrants even pay Social Security taxes.

Talk to a couple of tax accountants and figure out how to deal with this. The IRS can and will mess you up worse than the justice system, so it's best to CYA when you're dealing with them.

so how the heck do you file taxes on fake acconts?

Paper-Boy said:

so how the heck do you file taxes on fake acconts?

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I am NOT a tax advisor ... but with a quick look at the 1040 form I would say either put the income on line 12, business income, and fill out Schedule C, or enter it on line 21, other income.

Talk to a professional for the definitive answer. I pay my tax preparer $200 a year and ask him to do one thing --- make sure I'm not breaking any tax laws.

The IRS does not care how you make your money; they only want to get their cut.

so, does anyone else pay taxes on their fake accounts?

what if your accounts are located in a different country? either US or CA.

if you are on one of those paypal-only affiliate networks then you could probably get away with selling tons of ebooks or software and not pay taxes on all of it.