People who earn their income in cash are still obligated to honestly and accurately report that income on their tax returns. Although the temptation to not report cash is huge, failure to file honest tax returns reporting all sources of income, including cash income, is a federal tax crime. Unreported income also exposes you to additional tax liability and penalties, including the fraud penalty. On March 27, 2012, the IRS announced the guilty pleas of two people that worked for a nightclub in Las Vegas where most of their income was paid in cash by patrons looking to skip the line or get a better seat. Unfortunately, these two did not report their cash income on their tax returns when filed. After pleading guilty, these two people are now awaiting sentencing for filing false federal income tax returns and will likely go to jail. Have you filed a tax return that was not honest or accurate? Do you have unreported income including cash income? Call us, we can help.