Household employee - cash


#1

Hi, if someone who had paid his/her household employee cash, is applying for TS clearance, what are the implications?

Thanks!


#2

It has derailed some cabinet candidates . . . I don’t think that you will be asked about it in any investigation but to even come close to answering we would have to know what level of investigations you getting ready for.

BTW: In any investigation, I wouldn’t use the employee that you paid as a reference!


#3

Top Secret clearance with polygraph. The form asks to list foreign nationals, including local legal green card holders.
That describes the employee.


#4

Well then . . . You pretty much have to list them. Are you still in contact? Is he/she still working for you? If so, I would remedy that situation as soon as possible.

I guess it could come up in the poly but I don’t see why they would get into the tax aspect of it. However, there’s no reason that they can’t.


#5

So if the question come up in the poly and answered honestly - then “out of the game”?


#6

More importantly. WHY were you paying CASH? Did you report this to the IRS? If not you committed TAX FRAUD.


#7

There are no “in or out” questions or answers . . . You broke the law (I suspect that you wouldn’t be asking this question if you had properly reported your payments to the IRS), now you have to deal with it. There are mitigating factors for everything it’s a matter of finding and showing them in your particular case.

If this comes up, you will have to deal with it and it will make it more difficult, but not impossible, to get your clearance.


#8

Interesting thread. If he admits, would this be reported to IRS or other involved agencies?