Quote:
Originally Posted by Adam
I'm saying this in the interest of other officials who may be reading this.
You're completely wrong and completely exposed to audit. Legally, you're required to report everything you make, whether or not it comes in the form of cash or check, and whether or not you get a 1099. You may or may not agree with how it should be, but that's how it is.
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As I said above, you are 100% correct.
On the other hand, after having worked in the tax world, the government has NO idea about your referee earnings unless you get a 1099. Even then, they only know about the money that was reported on a 1099. If you didn't get a 1099 or you were paid cash, the IRS has no clue about the income. They could never prove you received anything other than what was on the 1099. The audit exposure is very low.
Before anybody accuses me of being an advocate of cheating, that's not what I'm doing. I'm simply giving information to officials about the IRS. What they do with the information and their money is up to them.