This thought crossed my mind, and I want to get some opinions.

 

Do you ever pay for services, such as home repair, and ask for the "Cash Price" ? If so, since that price tends to be less than the invoiced pricing, are you concerned about that transaction from a tax evasion perspective ?

 

While cash is acceptable, and more frequently, cash pricing is becoming more available at the retail level, is there a general thought / belief out there that "cash pricing" for services is dishonest ?

 

Other than when I have to call a "large company" if anyone enters my house cash is the only form of payment and I let everyone know that upfront. Like UK said, what someone does or does not report is their business and none of my business.

I don't disagree, however, the deeper ethical question is: If you know, are pretty sure or likely suspect that it is being done to avoid taxes (wink, wink)...then doesn't this make our US Government cash very similar to BitCoin transactions ?

 

Essentially re-establishing the value of a transaction based on the payment method ?

 

If you know that it's being done to avoid taxes, then as a consumer, do you have any moral culpability in contributing to stealing from the government ?

 

If you know for certain, sure. But how would you know that?

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Other than when I have to call a "large company" if anyone enters my house cash is the only form of payment and I let everyone know that upfront. Like UK said, what someone does or does not report is their business and none of my business.

 

If you know for certain, sure. But how would you know that?

 

Here's an example: I have a company come to house to put a roof on, they quote me a price. After receiving the quoted price I ask: "Do you have a cash price?" and they give me a lower bid.

 

The statement: "Do you have a cash price" is an almost universally accepted, underground statement for the contractor giving you a better price for work that will not be reported as income.

Here's an example: I have a company come to house to put a roof on, they quote me a price. After receiving the quoted price I ask: "Do you have a cash price?" and they give me a lower bid.

 

The statement: "Do you have a cash price" is an almost universally accepted, underground statement for the contractor giving you a better price for work that will not be reported as income.

 

In my case the association takes care of the roof, just sayin.

Here's an example: I have a company come to house to put a roof on, they quote me a price. After receiving the quoted price I ask: "Do you have a cash price?" and they give me a lower bid.

 

The statement: "Do you have a cash price" is an almost universally accepted, underground statement for the contractor giving you a better price for work that will not be reported as income.

 

There's nothing unethical about asking for a better price. If they aren't going to report the transaction, that's on them. Nothing you should concern yourself with.

Other than when I have to call a "large company" if anyone enters my house cash is the only form of payment and I let everyone know that upfront. Like UK said, what someone does or does not report is their business and none of my business.

 

Legally, I agree in most cases. However, if you have received a bid and get a restated "cash price", and you pay that...when the IRS starts asking questions, I think you have a gray area. At a minimum you may have to defend your statement.

 

My question is not so much the legal aspect, but the moral aspect. If you know, or are pretty sure, is your participation an ethical issue when it comes to taxes. You are essentially breaking the law by participating in the act, fully aware or on your suspicion.

 

Is that something that anyone thinks about, or do most just see it as "none of my business how they conduct their business" ?

Legally, I agree in most cases. However, if you have received a bid and get a restated "cash price", and you pay that...when the IRS starts asking questions, I think you have a gray area. At a minimum you may have to defend your statement.

 

My question is not so much the legal aspect, but the moral aspect. If you know, or are pretty sure, is your participation an ethical issue when it comes to taxes. You are essentially breaking the law by participating in the act, fully aware or on your suspicion.

 

Is that something that anyone thinks about, or do most just see it as "none of my business how they conduct their business" ?

 

Why would the IRS be asking you questions in the first place?

There's nothing unethical about asking for a better price. If they aren't going to report the transaction, that's on them. Nothing you should concern yourself with.

 

In principle, I don't disagree. I have been reading some information to the contrary that leans toward the purchaser of goods / services having some culpability, ignorance of the end game apparently is not wholly defensable.

In principle, I don't disagree. I have been reading some information to the contrary that leans toward the purchaser of goods / services having some culpability, ignorance of the end game apparently is not wholly defensable.

 

I don't think that's accurate. Whether they report something is a completely separate transaction than the one they entered into with you as a consumer. You and ABC Roofing agree to a "cash price" for a new roof. They fulfill their obligation and put a new roof on. You pay your agreed upon price, in cash, and the transaction is complete. You have no role in what happens next with that money.

Why would the IRS be asking you questions in the first place?

 

After they have questioned the contractor and he rolls over about his income stream....then they want answers

I don't think that's accurate. Whether they report something is a completely separate transaction than the one they entered into with you as a consumer. You and ABC Roofing agree to a "cash price" for a new roof. They fulfill their obligation and put a new roof on. You pay your agreed upon price, in cash, and the transaction is complete. You have no role in what happens next with that money.

 

I'm not disagreeing with your premise, I totally agree and would use that as my defense. What you cannot control is what is said when the contractor is questioned. Take it away from a one time event, roofing, and make it be the guy who cuts your grass. You pay for this service year after year and you are meticulous about how and what and where you want your grass / landscaping done, and you have always paid cash. Contractor gets popped for tax issues and when they begin to question, they want to know the details of his revenue stream, that comes back to you. You potentially have an employer relationship now instead of a contractor / consumer relationship and that is how the IRS gets into your front door.

I'm not disagreeing with your premise, I totally agree and would use that as my defense. What you cannot control is what is said when the contractor is questioned. Take it away from a one time event, roofing, and make it be the guy who cuts your grass. You pay for this service year after year and you are meticulous about how and what and where you want your grass / landscaping done, and you have always paid cash. Contractor gets popped for tax issues and when they begin to question, they want to know the details of his revenue stream, that comes back to you. You potentially have an employer relationship now instead of a contractor / consumer relationship and that is how the IRS gets into your front door.

 

I have nothing to say to anyone from the government ever unless I am represented by legal counsel.

I have nothing to say to anyone from the government ever unless I am represented by legal counsel.

 

You and me have exactly the same approach...although I'm probably a little more broad in my interpretation of what constitutes "government"....just short of poking the shotgun out the window

You and me have exactly the same approach...although I'm probably a little more broad in my interpretation of what constitutes "government"....just short of poking the shotgun out the window

 

On our current trajectory, just about everything...