One can also seek W-2 Wage and Tax Statements in addition to all Form 1099 Miscellaneous Income. Typical business owners primarily paid in cash include retail sales, restaurants, bars, lawn cutting and landscaping services, and construction sub-contractors like painters and sheet-rock. Some contractors may even provide an incentive offering substantial “cash discounts.” Some cash business owners may even refuse any form of payment other than cash from customers.Ī simple checklist of documents in self-employment cases begins with all income tax documents that can be obtained, from the Schedule C (Sole Proprietorship) to the Form K-1 (partnerships, corporations) to the Schedule E (rental property).
This is probably the most common way to hide income. But, the problem still exists.īecause not all of the cash received may be recorded by owners of a “cash business,” the income reported on tax returns and for child support likely only represents a small portion of the true sales of the business if all of the cash received was recorded and included in income. What has worked in favor of parents seeking child support is that so little cash is used any more in the modern economy that these cases tend to be less frequent. Gathering Evidence of Cash Based Business EarningsĪ parent who is self-employed and owns a business routinely paid in cash is generally viewed by lawyers as one of the most difficult type of Tennessee child support case.
Cash business owners can try to underreport income to lower a Tennessee child support obligation.
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