My brother and I started in the lawn business last year and I have handled the accounting and finances. I have kept excellent records and work with a great CPA. We take full advantage of all write-offs and such but declare 100% of our earnings, its just worth the peace of mind for me. We are now planning to split the business into two seperate LCO's. I will continue to handle my accounting the same way but he is planning to run 1/4 of his income under the table, not all cash income, but checks written personally to him he plans to cash at the counter of the customer's bank. I have warned him against this, with the rational that he will eventually get caught. But I can't tell him by what means. By what means does the IRS track these funds or do they? I am still against this and need proof to persuade my otherwise well-intended brother and partner. I have looked up info at http://www.irs.gov and multiple SOHO web sites with no luck. Thanks in advance for the help.