Quote:
Originally Posted by MTI
Brian, that would depend on her employment status; either as an independent contractor (1099) or employee (W2), which hasn't been disclosed in the exemplar.
If the prepared taxes are legitimate, there is no fraud as to tax reporting.
Assuming that the tax reporting in the returns is fraudulent, what's the downside for the employee? The employer cannot bring suit for breach of employment contract, since they cannot enforce a contract to commit fraud. In a way, one has to examine where is the actual "leverage" in this arrangement? Without more information (employee at will? nature of expenses covered? dispute resolution procedures) it remains hard to assess the virtues or downsides.
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While I couldn't get an exact answer I did find a few lines in the packet which they delivered which makes the situation a bit more interesting.
The individual is stated to be a "volunteer" and therefore "no employer-employee relationship exists between you and ********. As a result, any funds reimbursed to you from *********** are not considered income for tax purposes; they are not reported to the government, and taxes are not withheld with regard to these funds.”
And further on....
"To avoid raising unnecessary tax questions, please follow these guidelines closely: Do not share information on funds you receive from ******* with those who help you with financial or tax matters…. Never represent in any way that you are paid for your service. If you are required to file an income-tax report for other purposes, do not list any funds you receive from ********, regardless of where you [are positioned] or where you hold citizenship.”
“the amount of any funds reimbursed to you should be kept strictly confidential.”
I don't want to post too much, but this just doesn't seem very kosher. Regardless of the legality of it. (Which is still up to debate, but there are around 100 other people across the globe in this same position).