4 ms·
No, they can just not withhold your tax obligation. Mandatory withholding is not even the norm -- KS and MO don't require it, it seems only Eastern seaboard sta
by R0b0t1 5y ago
No, they can just not withhold your tax obligation. Mandatory withholding is not even the norm -- KS and MO don't require it, it seems only Eastern seaboard states and maybe CA do.
People keep walking this back to massive fraud but more likely what anonymity will do is just allow businesses to escape onerous operating issues. E.g. having employees in some states is worse than having them in others because of those state's perceived requirements to operate an LLC in that state, and other related rules. It's not even clear if some of these requirements are enforceable federally.
- lottin 5y agoNot withholding the tax is not enough. Both the employee and the employer have to lie to the government for this to work, and for an employer this means they need to falsify their financial records, because the tax agency can demand to see them. Also, anonymous transactions already exist, so cryptocurrency doesn't make this type of fraud easier or more likely.
- R0b0t1 5y agoYour employer doesn't need to lie, you need to not get audited. Even if both you and your employer lie they will have cash flow discrepancies. As I mentioned, there are more defensible reasons for only having one party lie, like avoiding CA's (future?) claim that paying someone who lives in California implies you hired them in California and need to incorporate in California.