Tax Deal?

[Nghi Le]

I came across a contractor who had two different sets of prices/bids; one that he calls his regular price, and one that he calls a tax/cash deal.  The tax deal is always a great deal, but I wonder if I could get in trouble for this?

We still sign a contract, he would provide a receipt for all the disbursements, and he says his license, bond, and insurance will still take effect for the project.  I also still plan on recording all of my expenses in QuickBooks and give it to my CPA at the end of the year regardless.

[Wayne Brooks]

If paying cash, you'll need a receipt, a W-9 from the contractor, and you'll need to file a 1099 for the contractor.  I'm guessing to him, cash means you won't get the first two, which means you can't file the 1099, and can't deduct it.