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Well, one of three things comes to mind: 1. You get away with it, and there are no implications 2. Your employer decides he wants to prove that he paid you, so he issues you a 1099-MISC at the end of the year. Little did you know that he was going to treat you as an independent contractor, and now you not only have to pay income tax on the amount that he paid you but also self-employment tax (an additional 15.3%). 3. You get caught, get charged with tax evasion, and go to jail. Really, I suspect #1 and #2 are the most common.

ANSWER: If you are being paid "under the table" this implies you are evading taxation. If you are paid over the table without regard to taxation no tax evasion is implied. If your employer files an 1099-MISC at the end of the year he did so with your authorization. If he did so with out any authorization on your part he did so in error. If you are charged with tax evasion this is not a guaranteed path to conviction especially if you are not liable for a tax or subject to any revenue laws. If you are not subject to any revenue laws there is no reason to be paid "under the table" as you are not hiding anything and everything you earn is no body's business but your own.

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