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What Could It Mean If You Are Paid In Cash?

If your employer pays all or part of your wages in cash, it is likely to avoid paying taxes. The IRS takes this form of tax fraud seriously. As an employee with inside knowledge of your company’s fraudulent practices, you have the power to help put a stop to it – and you can collect significant financial compensation for doing the right thing.

Katz Melinger PLLC has extensive experience practicing employment law, and understand the relevant law from all angles. We will help you protect your legal rights as a whistleblower and pursue your rightful damages. Call our firm at 212-460-0047 to schedule an appointment with one of our lawyers.

Help Expose Tax Fraud And Get Rewarded

Whistleblower laws encourage workers who witness their employers’ misconduct to come forward. If the IRS recovers unpaid taxes from your employer based on information you provide, you may receive a percentage of the recovery.

The law also prohibits employer retaliation against a worker who files a complaint with the IRS or other government agency. Thus, employers cannot do any of the following against you for reporting them to the IRS:

  • Fire you
  • Demote you
  • Harass or threaten you
  • Deny you a deserved raise or promotion

If your employer does retaliate against you, you could be entitled to lost wages and benefits, compensatory damages, reinstatement, and potentially punitive damages.

Private Claims Against Your Employer

The IRS also provides a claim for civil fraud if you can show that your employer willfully filed fraudulent documents. One scenario is where a company pays you partly by check and partly in cash, but then only reports the check amounts to the IRS on your W-2. For each fraudulent W-2 filed, you might be entitled to the greater of $5,000 or the actual damages you have sustained. The court may also award you attorneys’ fees.

Contact Us Before Moving Forward

Call Katz Melinger PLLC at 212-460-0047 or email us to discuss your legal options regarding illegal payroll methods. We represent clients in all of New York’s boroughs, as well as Westchester County, Nassau County and Suffolk County. We also practice in northern New Jersey.