Paying cash to avoid taxes - no. I have paid cash to a lawn service, but insisted on a reciept showing I paid in full with cash. Having had a 'flea market store' I constantly had to deal with the sales tax issue - even tho I had a tax certificate and had it displayed next to my cash register - "if I pay cash you won't charge me sales tax, right?" After a consultation with my CPA we decided on a tax included price. Meant keeping lots of records, but I was legally doing business, paid my sales tax quarterly and my customers thought they were getting a 'real deal'. Much better in my mind than the thought of being arrested, going to jail, paying a whole lot in back taxes, penalties, etc. It does go further than just the local taxes - all the way up to the IRS. Truthfully, this day in age of sagging home and retail sales, my town, county and state need all the help they can get from sales tax.
