Please help with a question I have about business finances.

I am working for a friend who owns a granite business from her late husband. Ive noticed that for the past 6 months, she has been telling all of her customers to either pay in cash or write her a personal check. What are the ramifications of her not running anything through the company?

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Threepio

Depending on how she files her taxes, there may not be any ramifications.

IE: as long as the correct amount of tax is paid on the income then the IRS will at most give her a slap on the wrist for not filling out the "proper "form(s).

On the other hand..... she could go to jail if she is cheating the IRS.