<prompt> Human: Wife is a Full-time Nanny for a family. She makes about 3kmonth. Originally when she took the job the family said they would pay under the table for the first month just as a probationary period to make sure she will work out. Sounds reasonable and wise on their end. Now we are a month in he has given us the option of staying under the table til the end of the year or to go on the books. To clarify, this is an option. He said he is completely willing to go on the books if we decide to. While tax free money sounds fantastic in theory, I also want to weigh the risks. What sorts of legal risks are there? Will the IRS track him before us? Is there a loophole he probably knows to keep out of trouble? Am I overthinking this and staring a gift horse in the face? I live in Florida. There is no state tax here. However, she has not been a resident for all of 2016 but I have. If that info helps at all. Thanks!  <response>: Them dodging taxes and denying your wife the stability of unemployment insurance, workmans comp, and social security payments in her old age have nothing to do with making sure your wife worked out as an employee. Her employers are tax frauds who very likely are willing to swindle her if theyre willing to swindle us. Heres another reality - your wife is a tax fraud, too.Its not tax free money, if youre caught, the penalties are staggering. Tax fraud is illegal and if anyone gets annoyed at you, your wife, or wants to leverage it over you, youre screwed. What loophole are you talking about? One that lets you skip all taxes? 