On your tax return, or the tax return for your business, you would have to report the expense as contract labor instead of rent. It would not make any difference in your total business expenses or the amount of tax that you pay. You would have to issue a Form 1099-NEC to the person you are subletting from, and file the 1099-NEC with the IRS.
And of course you are lying. The IRS might not care much, since it doesn't make any difference in your tax. But if they happen to notice it, it might make them want to look into what else you might be lying about.
A shady deal just doesn't seem like a good idea to me.
