Paying a sub-contractor in cash

[Just Don]

I have a guy wants to be paid cash off the books on a job he is doing for me. Is this a problem for 'ME' ?? Whats the pitfalls of doing THAT??

[J Scott]

Do you plan to write off his work as an expense against any income/profit you make on this project?

If not, don't worry about it...

But, if you plan to claim this expense as a deduction, the IRS is going to insist that someone pays taxes on that money that was paid out. If you provide the contractor a 1099 at the end of the year, he pays the taxes. If you don't provide him a 1099, the IRS will expect YOU to pay the taxes.

That's the pitfall...