@squamby it is because that is the law and our tax system is based on trust and reporting within the scope of the tax laws.
Are there wealthy individuals that don't report properly; most definitely, but that doesn't make it right.
Then if you are audited and an agent attempts to reconcile your living style to what is being reported and then looks at your bank records. Will you then lie if asked if you ever were paid in cash?
Penalties for those caught are not worth it.
Not a stellar standard.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
