What should the response be to someone wanting to be paid in cash for a service?

[IdaBriggs]

19. Welcome to the Underground Economy.

Of course she isn't claiming all of her income (but I guarantee she is taking every deduction allowed by law).

If you aren't comfortable knowing that you are hiring a tax scammer (did you really think it was just a "big business" thing?), hire someone else. Or quit asking questions and either a) write a check to her business name, or b) suck up the fact that even NICE people think they are entitled to not pay their fair share.

Optional: demand a receipt, which you should be doing when you pay for a service. Yes, she is bonded and insured (altho I would demand CURRENT proof, and make a phone call to verify) so if one of her employees starts stealing you would have proof they actually worked for you, but odds are good most people don't ask, and if she does have a problem, she can either disappear or deny if there is a claim. (Come on - when a person scams the government because they are entitled to, what makes you really believe they are going to treat you differently? It is a character thing, and it is how we behave when we think no one is looking that our true character comes shining through.)

Welcome to peer pressure, and ten thousand reasons to pretend you don't know what is going on. You will find many in this thread: The big guys do it, so who cares? Who are you going to squeal to? What proof do you have? Etc.

At the end of the day, do you want her to clean your house or not? People who pay taxes will charge more. How much is a clean toilet worth to you?

No one is watching. Are you going to take money out of someone else's pocket because of YOUR morals?

It is easier when we can play stupid, isn't it?

Good luck.