If I own business and one of my primary suppliers only accepts cash and doesn’t give receipts, are we in any guilty for doing business with him?

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If I own business and one of my primary suppliers only accepts cash and doesn’t give receipts, are we in any guilty for doing business with him?

I’m pretty sure he’s avoiding taxes himself. Unfortunately, we’re pretty dependent on this guys product right now and cannot shop elsewhere. We fully intend on paying taxes ourselves.

Asked on October 14, 2016 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, you are not: you are not responsible for whether or not another person or a business you do not control reports and pays taxes. The law requires him to pay taxes, no matter how he accepts payment (e.g. cash, check, credit card--it's all the same). You can do business with him on the assumption he will obey the tax law, the same way you can do businss with someone on the assumption they are not violating labor, workplace safety, or environmental law--then it's on him (and only on him) if he does not.


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