[greymule]

You are correct, Delaware Blue. Whether or not somebody has to report paying you, you still have to declare every cent you make. That $20 you made playing poker with your friends, for example. And if you agree to paint your dentist neighbor's house if he fixes your teeth, you both "made" the fair-market value of those services and must report such as income. And any idea that the IRS gives umpires a pass because they perform a public service (?) is incorrect. It's simply not worth the effort for them to try to trace relatively small cash payments, which most umpires know not to put in the bank anyway. Keep in mind also that in many cash games, the people paying the umpires don't even know their names. Still, I know a few umpires who have been audited and had to cough up money.

In New Jersey, townships (i.e., the government) often gladly circumvent the need for 1099s by making out checks to any names the umpires' association specifies. Yes, local government recreation directors colluding with umpires to keep everybody under $600 is probably the number one corruption issue in the Garden State.

Thirty years ago, when I owned a retail store, one of the top law enforcement officials in New Jersey, after agreeing to a large purchase, asked me to make the invoice to his cousin's address in Pennsylvania so he could avoid paying the NJ sales tax.

In New Jersey, when you fill out your tax return, you are supposed to 'fess up and pay "use" tax. For example, if while vacationing in New Hampshire (where there is no sales tax), you purchase a $300 camera, you must note that fact on your return and send the state $21—the tax you would have paid had you purchased the camera in New Jersey. Same when you order a DVD from amazon.com. If you buy something in a state where the sales tax is 5%, you still owe 2% to NJ. It is believed that some people fail to report such transactions.