@gollum,
Several questions there. First, Weisselberg pleaded guilty to fraud.
Quote:Weisselberg pleaded guilty to 15 felonies and admitted he failed to pay taxes on $1.7 million in income, including luxury perks, such as rent and utilities for a Manhattan apartment, leases for a pair of Mercedes-Benz cars and private school tuition for his grandchildren.
These are taxable benefits and as CFO, Weisselberg absolutely knew about it.
Quote:I believe that many employee benefits may be taxable but almost no one pays the tax. We don't receive a bill and so we take no action.
It is your employer's responsibility to report your income, including taxable benefits to the government and include them on your W-2 so you pay taxes on them. If your company fails to do that, they are breaking the law. In this case, Weisselberg used his position as CFO to ensure his benefits were not reported.
Quote:Also, in (I think) a related matter, many people pay a woman to perform domestic tasks (e.g., cleaning house). Typically this is done "off the books."
Are all these people criminals?
There are two ways this happens. If you hire someone occasionally who has a cleaning service or cleans for someone else, you are hiring a contractor who is responsible for the taxes owed. If they don't pay the taxes, they are breaking the law and will be responsible for taxes, interest and penalties if they get caught, including the potential of jail time. If you hire someone to work just for you, say a maid, then you are their employer and are responsible for reporting their income to the government, withholding appropriate taxes and giving them things like W2's so they can do their taxes. Some companies like to hire people as employees but call them contractors to avoid their responsibilities.
Here is a story about the Uber lawsuit.