I have a cash paying job, how long can i deposit cash without paying taxes?

I have a job that pays under the table, always cash. I make 350-450 dollars a week. how long can i go on depositing the money into my bank account before the IRS catches on? Assuming they do catch on at some point, how would they go about acquiring the money from me, and how much would i owe them?

I have a cash paying job, how long can i deposit cash without paying taxes?
You and your cash employer are also not paying into your Social Security Account either. I bet your employer is not paying unemployment taxes or even workmen's compensation. I would start looking for another job while you still working. You are shortchanging yourself. You could not even get the stimulus check because you did not pay any taxes.
Reply:You're considered self-employed. As such, your filing requirement amount is $400 for the entire year. So, you hit that during your first week or two on this gig.





You'll owe about $3,300 in self-employment taxes on top of whatever income taxes you will owe. Income taxes are based upon total income, filing status, deductions, exemptions, etc so are not easy to predict without complete knowledge of your situation. But as an example, if you're single and not a dependent and have no dependents you'd owe about $1,560 in income taxes for a total of $4,860. That would require you to make quarterly estimated tax payments of $1,215. If your State levies an income tax, you'd need to make estimated payments there as well.





The IRS will find out about the income when it's reported to them. The most common way is via Form 1099. Businesses that pay you are required to report the payments using Form 1099 whenever the total they pay you in any one year exceeds $600. If the business is playing fast and loose and not reporting these, it's likely that the IRS will find about you when the business is audited. That will happen sooner or later; small businesses have about a 1 in 10 shot of being audited in any given year. The IRS will disallow the business deductions for money paid to you unless they prepare the Forms 1099. At that point, YOU are busted.





If you don't file your tax returns and pay the taxes, the IRS has many ways of getting their money. They can seize your bank accounts and any other assets. They can attach your accounts receivable. If you are working at a wage job, they can attach your wages. And once they come after you for it, the debt will mount significantly since they will tack on failure to file penalties as well as late payment penalties and interest. In the worst case, this can nearly double you debt over time.





But let's say for sake of argument that you manage to fly under the radar for 45 years and make it to retirement age. I hope you've set aside a good chunk of that income since as far as the Social Security Administration is concerned, your lifetime earnings are $0 so that's what you'll get from them: $0. Hope you like Alpo.
Reply:There are a lot of ways to get caught, and most of them don't even include them noticing the bank deposits. You know you are legally required to pay tax on this. If you don't, then if and when they catch you, you'll owe what you would have owed in the first place plus interest and penalties, and the interest and penalties could easily grow to more than double the original tax. You could be prosecuted for tax evasion and end up in prison.





They'll acquire the money from you by putting you on a payment plan, and if you don't pay, can and will seize any assets you have including draining your bank account.
Reply:This is self employed income. Read about self employed tax filing


http://taxipay.blogspot.com/2008/04/tax-...