If you work undertable, but don't report it, how will IRS find out and audit you?

First off, you are doing something TOTALLY ILLEGAL and if caught, YOU TOO could be in a HEAP OF TROUBLE with the IRS and for some reason, they DO catch everyone at one point or another.... Your employer is not the only one here doing something totally illegal... YOU ARE ALSO...by accepting these UNDER THE TABLE PAYMENTS and NOT paying YOUR FAIR SHARE OF TAXES like the rest of us.....Fines for what you are doing can be VERY HIGH and well tax fraud (and that is what YOU are committing also) is a FEDERAL CRIME!!!!! I would SUGGEST strongly that you NEVER take work UNDER THE TABLE because obviously, your employer is a crook and you are also by agreeing to be paid this way and skipping out on your tax liability for the money you earn... NEVER assume the IRS will not find out....someone down the road will slip up and WHAM, the IRS will be after YOU too. NERVOUS? I would be!!!!! Get a real job with REAL government forms and you won't have anything to worry about as long as you report ALL YOUR INCOME and pay your proper taxes....!!!! By the way, I'd be REAL CAREFUL who you told you were BEING PAID UNDER THE TABLE you never know when you might run into a

It's easier than you think.

Commonly they audit the payer. He chickens out and has his accountant file the 1099-Misc. Then when the 1099-Misc shows up on the system, you get a letter asking why it wasn't on your tax return. Saying "He told me he wouldn't tell anybody" isn't going to get you out of this.

Or, you live high on the hog. Your income doesn't reflect your lifestyle. So they estimate your expenses and figure you must have been paid in cash.

Or one of your coworkers gets audited and rats out the payer, he gets audited...or he uses a sleazy preparer and the preparer gets caught on one bad return and all of the returns for that preparer are double checked....

Oh and tax evasion has no statute of limitations. They can come after you for the rest of your life.

There are a lot of ways, and it happens all the time. Some common ways are that the business paying you gets audited, or someone snitches on you, or for some reason you pop up for an audit.

There are other consequences too, to this type of tax fraud, besides legal ones. If you apply for a mortgage, or another loan like for a car or school, they'll ask you to prove your income and you won't be able to. If you get hurt on the job or laid off, you won't be eligible for any compensation. And when you're ready to retire, you won't be eligible for social security or medicare.

All in all, legally and otherwise, it's a real bad idea.

they wont find out unless someone reports you
also if you are randomly chosen for an audit and they see you have assets like house car boat etc. but only reported like 15000 as income they will become suspicious