<prompt> Human: Apologize if this topic has been answered - I searched the wiki and didnt see it. Im posting this for my sister.My sister works for my aunt as a hairdresser in her salon. Unbeknownst to me, my aunt paid her under the table since July in cash. Aunt may or may not have kept quality hand-written records of these payments.My aunt decided she was making too much money on the books and decided that she wanted to claim my sister and make her fill out a 1099. I quoted things because thats the exact wording given to me. My sister is panicking that she will now owe tax on the last 6 months of pay she received under the table.Couple of questions here:1. Is what my aunt doing legal?2. If no formal records were kept, tax was not withheld, and there are no traces of my sister being paid these amounts cash - is she legally responsible to owe tax on this income? I assume she is responsible much in the same way a waitress owes tax on tips. 3. What should my sister do? Stop working immediately? Talk to a tax professional? Find a lawyer?I dont know if Im making this more serious or less serious than it should be.Any help is appreciated. I can try to answer any follow-up questions, but Id need to text my sister as shes the one going through it.  <response>: Nope. She paid your sister cash on a 1099 basis, and is now filling out the correct form. What should my sister do?Follow the law and pay taxes on her income like everyone else does. 