# What is the point and legal status of "tax-free" income?

**URL:** <https://boards.straightdope.com/t/what-is-the-point-and-legal-status-of-tax-free-income/598704>\
**Category:** In My Humble Opinion\
**Created:** [October 5, 2011, 5:35pm UTC](https://boards.straightdope.com/t/what-is-the-point-and-legal-status-of-tax-free-income/598704 "2011-10-05T17:35:25Z")\
**Posts on this page:** 2\
**Page:** 2

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**Author:** ![Little\_Nemo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/little_nemo/32/3120_2.png) [@Little\_Nemo](https://boards.straightdope.com/u/Little_Nemo)\
**Post date:** [October 9, 2011, 11:45pm UTC](https://boards.straightdope.com/t/what-is-the-point-and-legal-status-of-tax-free-income/598704/21 "2011-10-09T23:45:04Z")

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> [@Rand\_Rover](#):
>
> Another way to think about it–working under the table is kinda like having sex without a condom.

And getting caught by the IRS is also like having sex without a condom - except the positions are reversed.

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**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\
**Post date:** [October 10, 2011, 12:54pm UTC](https://boards.straightdope.com/t/what-is-the-point-and-legal-status-of-tax-free-income/598704/22 "2011-10-10T12:54:21Z")

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You know you can anonymously contact the IRS. I was offered a situation where I would be paid (well) as an independent contractor. I thought things smelled fishy, so I called the IRS. From a payphone (this was many years ago and I was scared to death of the IRS). They helped me out with information, and in the end it was up to me if I wanted to give the IRS the business name or not.

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