Death and Taxes

Jaybird180

Jaybird180

Final Approach
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They say nothing is sure except death and taxes.

The following story bears no resemblance to actual persons whether living or dead. Any resemblance is merely coincidental.

An acquaintance of mine found an instructor for some training through ME rating. They plan to do this over the next 10 months at an agreed price of $20k.

During the course of discussion the instructor let it known that $20k "under the table" would fill a gap in his solvency, to which my acquaintance replied, "what you do on your tax return is your own business." The instructor has just established motive and means and communicated tax fraud, IMO.

Does the student have any potential criminal exposure, knowing the instructor was dead serious?
 
Jaybird180 said:
They say nothing is sure except death and taxes.

The following story bears no resemblance to actual persons whether living or dead. Any resemblance is merely coincidental.

An acquaintance of mine found an instructor for some training through ME rating. They plan to do this over the next 10 months at an agreed price of $20k.

During the course of discussion the instructor let it known that $20k "under the table" would fill a gap in his solvency, to which my acquaintance replied, "what you do on your tax return is your own business." The instructor has just established motive and means and communicated tax fraud, IMO.

Does the student have any potential criminal exposure, knowing the instructor was dead serious?
Click to expand...


Yup......

And worse if the "instructor" actually works for the IRS and the student plays along....
 
Jaybird180 said:
They say nothing is sure except death and taxes.

The following story bears no resemblance to actual persons whether living or dead. Any resemblance is merely coincidental.

An acquaintance of mine found an instructor for some training through ME rating. They plan to do this over the next 10 months at an agreed price of $20k.

During the course of discussion the instructor let it known that $20k "under the table" would fill a gap in his solvency, to which my acquaintance replied, "what you do on your tax return is your own business." The instructor has just established motive and means and communicated tax fraud, IMO.

Does the student have any potential criminal exposure, knowing the instructor was dead serious?
Click to expand...

You are correct. There was a recent case of a famous romance novel writer who had a personal bookkeeper who was audited and found to be getting money 'under the table.' The author hired a high priced lawyer and escaped the problem, the bookkeeper did 6 months in federal camp. Lost her marriage, and her home and now works part-time for peanuts.
 
Jaybird180 said:
They say nothing is sure except death and taxes.

The following story bears no resemblance to actual persons whether living or dead. Any resemblance is merely coincidental.

An acquaintance of mine found an instructor for some training through ME rating. They plan to do this over the next 10 months at an agreed price of $20k.

During the course of discussion the instructor let it known that $20k "under the table" would fill a gap in his solvency, to which my acquaintance replied, "what you do on your tax return is your own business." The instructor has just established motive and means and communicated tax fraud, IMO.

Does the student have any potential criminal exposure, knowing the instructor was dead serious?
Click to expand...


No ones damn business.

The guy wants to be paid cash, fine, as a student how is that your concern, if he declares it or doesn't that all comes down to him, non of your business. If 20k is a good deal for your friend, go for it.

I've always been cash or barter for freelance CFIing, I have many reasons for this, non of which are anyone's business, never has this ever been a issue for any potential students.

People are so scared of everything now days
 
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James331 said:
No ones damn business.

The guy wants to be paid cash, fine, as a student how is that your concern, if he declares it or doesn't that all comes down to him, non of your business. If 20k is a good deal for your friend, go for it.

I've always been cash or barter for freelance CFIing, I have many reasons for this, non of which are anyone's business, never has this ever been a issue for any potential students.

People are so scared of everything now days
Click to expand...

Ya ever think about the hundred million or more U.S, hard working, tax paying citizens who HATE paying more each week to cover tax cheats...:mad2::mad2:..

IMHO... YMMV...
 
Gonna be hard to prove that that conversation ever took place. Not sure why there would be any entrapment-type setup from the CFI.
 
I think you get a reward (part of the recovered $) if you report it.
 
N801BH said:
Ya ever think about the hundred million or more U.S, hard working, tax paying citizens who HATE paying more each week to cover tax cheats...:mad2::mad2:..

IMHO... YMMV...
Click to expand...

To cover tax cheats :lol:

More like to cover govt bloat and handouts.

I care 1000% more that folks spend their money locally when possible, than if they "cheat" on some government crap.



ejensen said:
I think you get a reward (part of the recovered $) if you report it.
Click to expand...

Didn't the Nazis pay a reward for reporting folks too.
 
I sure as heck hope that "theough ME" means at least "PPL + IR + CPL + ME" because otherwise the student should be reporting not only tax fraud but also extortion. :lol:
 
Jaybird180 said:
They say nothing is sure except death and taxes.

The following story bears no resemblance to actual persons whether living or dead. Any resemblance is merely coincidental.

An acquaintance of mine found an instructor for some training through ME rating. They plan to do this over the next 10 months at an agreed price of $20k.

During the course of discussion the instructor let it known that $20k "under the table" would fill a gap in his solvency, to which my acquaintance replied, "what you do on your tax return is your own business." The instructor has just established motive and means and communicated tax fraud, IMO.

Does the student have any potential criminal exposure, knowing the instructor was dead serious?
Click to expand...

Happens every day on every block of every street in America. And, that's only a very very slight exaggeration.

In small towns, cash is king and almost required for small mom and pop (especially service industry folks) to stay a float.

I wouldn't sweat it. I'd pay him in cash, after the services are rendered and not give a **** what he does with the cash.
 
N801BH said:
Ya ever think about the hundred million or more U.S, hard working, tax paying citizens who HATE paying more each week to cover tax cheats...:mad2::mad2:..

IMHO... YMMV...
Click to expand...

I certainly hope that companies paying a negative tax rate while pulling in billions bugs you a whole bunch more. Just saying.

When I ran my own side computer repair business I can't say I reported every dime of cash that was handed my way. My wife handles the taxes, and I don't ask questions.
 
Why would an instructor ,inform the student he was working under the table. All he had to say was he would be payed in cash.if he declares it or not is his business. I would want the statement some training through multi specified.
 
frfly172 said:
Why would an instructor ,inform the student he was working under the table. All he had to say was he would be payed in cash.if he declares it or not is his business. I would want the statement some training through multi specified.
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Is a personal check the same as cash by your meaning?

Training agreement IMO is irrelevant to the meat of the fraud matter. As stated in the OP, any resemblance to actual persons is merely coincidental.
 
Jaybird180 said:
Is a personal check the same as cash by your meaning?

Training agreement IMO is irrelevant to the meat of the fraud matter. As stated in the OP, any resemblance to actual persons is merely coincidental.
Click to expand...

Depends, if there is a local bank where you can cash it, more or less.


I only took checks a hand full of times from people, it's just too much of a risk, getting cash isn't a big deal and most folks understand and have zero issue with it.
 
James331 said:
Depends, if there is a local bank where you can cash it, more or less.


I only took checks a hand full of times from people, it's just too much of a risk, getting cash isn't a big deal and most folks understand and have zero issue with it.
Click to expand...

If it's legal, moral and ethical then why be concerned about the paper trail?
 
It isn't illegal to pay or receive cash. Only to not report it. That's illegal and up to the parties.

The student is obligated to file a 1099 if he pays cash over $600 to any vendor.

What the instructor wants is only achievable if both parties commit tax fraud.
 
Jaybird180 said:
If it's legal, moral and ethical then why be concerned about the paper trail?
Click to expand...

If you have nothing to hide right :lol:


It's not worth the risk, even doing everything legally if you're investigated by one of our many over zealous John Wayne govt officials, the costs of your defense, even if completely innocent, are still going to come out of your pocket.

As far as ethical, there isn't a single person in our government who even understands the meaning of that word, let alone has any business taking to private citizens about being ethical.
 
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txflyer said:
It isn't illegal to pay or receive cash. Only to not report it. That's illegal and up to the parties.

The student is obligated to file a 1099 if he pays cash over $600 to any vendor.

What the instructor wants is only achievable if both parties commit tax fraud.
Click to expand...

There are many services that people purchase and a 1099 is not required. Most people have no idea what that is. This is a private person getting a service and paying per agreement.

The way I see it, the only thing that complicates the entire situation is the wanton statement about "under the table". As I understand tax avoidance and tax evasion are different things, where the latter has the intent to not pay a tax that would otherwise become due.
 
If you're worried about paying money in cash, just send the recipient a form 1099, copy to the IRS after the transaction.
 
James331 said:
As far as ethical, there isn't a single person in our government who even understands the meaning of that word, let alone has any business taking to private citizens about being ethical.
Click to expand...

Really? Not even one?

Talking out of your posterior really doesn't help your point.

I work with several ethical civil servants on a daily basis. Yes, that's more than one. You don't have the slightest clue.
 
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