If a homeowners association contracts with a lawn care/snow removal/maintenance company who requires cash payment to avoid paying taxes what, if any, legal consequences could the association face?
This is a good question for an accountant or tax lawyer. However, I wouldn't recommend hiring this company. They probably don't have insurance and you'd be assisting someone in tax evasion by not issuing w-9s.
This post is for information purposes only and does not constitute legal advice, nor does it establish an attorney-client relationship.
I agree with the previous response. This is not really a "contracts" question; in reality you seem to be asking about tax liabilities or possible criminal implications - if any - under the fact pattern presented. Regardless, though, I would avoid this situation altogether to limit any liabilities for committing bad acts.
My answers are for informational purposes only, and do not create an attorney-client relationship. This should not be viewed as legal advice.
I agree that you should ensure that they have insurance and are a reputable company before doing business with them so that they do not take the money and fail to provide services, or provide services in a way that damages the property. If you decide to contract with them, there is no requirement that the association pay with a check; you could pay with cash. However, you would most likely need to issue a 1099 or some other documentation showing that you paid that company, and retain records for your own books showing what you paid, to whom, and when, and do not agree to help the company avoid paying taxes in any way. You should consult an accountant on this.
This information is not intended to constitute legal advice or form an attorney-client relationship of any kind. Your legal rights are subject to certain statutes of limitations and potentially other legal mandates which may require you to take specific action within a certain amount of time, or you could waive your legal rights forever. You should contact an attorney directly to ensure that you do not pass any deadlines or waive any of your rights.
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