When you get paid in cash, your income is out of sight from the IRS. But as the sad case of tax scofflaw Lindsey Lohan shows, thinking that you can avoid the tax man is not a smart assumption. And while Lohan's issues are extreme, anyone who primarily does business in cash will face the same ones.
Citibank recently sent recipients of a special frequent flier mile promotion an unwelcome surprise: a 1099 tax form indicating those miles are taxable income. Wondering if your other credit card rewards might be taxable too? Well, stop worrying.