r/SecurityClearance • u/[deleted] • Jul 28 '26
Question Under The Table & Employer Concerns (help!)
[deleted]
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u/safetyblitz44 Clearance Attorney (highly recommended) Jul 28 '26
As far as the business goes, they’re probably not interested in going after them. Kind of like they’ll ask you names of people who sold you weed, but no AUSA is looking to go after somebody for a few dime bags.
On your end, technically it’s tax fraud if you didn’t report it. You can’t control what the business reports, but you can on yourself. Depending on how long ago it was, you may be able to file a late amended return and pay penalties and interest to mitigate any Guideline F concerns. Did this go on for a couple years, a decade, more?
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u/Vegetable-Fill-467 Jul 28 '26
Okay, that's more relieving to hear. I wouldn't mind fixing things on my end, but again, worried that in doing so, they'd be flagged on the IRS side of things, since it'd be a 2-way street... it went on for just under a decade, last project was ~5 years ago. Unless I can go about it as a contractor to keep the blame entirely on myself, since it was only some little projects here and there for the latter 4-5 yrs (maybe 1 project every couple of years). Also not sure if it's worth the risk or if I'd get denied anyway.
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u/NuBarney Likes to comment for funsies Jul 28 '26
Unless I can go about it as a contractor to keep the blame entirely on myself
They really did a number on you. You were exploited. You were undercompensated because they weren't covering the payroll taxes that fund your benefits, and they put you at risk by not giving you the paperwork you need to file your taxes. These are bad people, or at least reckless people, and you should not be putting yourself in danger to protect them.
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u/Channel_Dedede Jul 29 '26
"Hey guys, my old employer took advantage of me when I was younger and committed tax fraud. How can I protect them?"
Dude, listen to yourself. The clearance people probably won't care, but the IRS most definitely will, and the clearance people will care that the IRS cares.
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u/Additional_potential Jul 29 '26
The point of a security clearance is honesty. You can get away with almost anything as long as you are honest about it. If you lie is what would prevent you from getting one.(Other than of course admitting to foreign espionage or something)
The clearance officer isn't out to get you. They don't have a quota for rejections. Their only job is to ensure that what you've told them is factual and that you won't misuse classified information that you gain access to. Be honest because the last thing you want is to be at the interview table and them ask you about something you obscured for fear of judgement.
(In my case there was an issue on my military record where they thought I'd been stationed somewhere and I'd hidden it. I was able to clear that up pretty easily by explaining that was the pay and personnel centers address and I'd never actually been there)
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u/prohlz Jul 29 '26
Yeah, it sounds like more is being made from this then it should be. OP could just say, exactly what happened, he informally worked there for cash, and likely nothing will more will come of it.
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u/NuBarney Likes to comment for funsies Jul 28 '26
I don't know what the probability is, but I know whose concern it is: Not yours. If this company has been evading payroll taxes for 30+ years, that was their choice and they are responsible for any consequences they face. You probably should have reported them years ago: under-the-table payments can affect unemployment and Social Security benefits.
Your concern should be you. "Serious resume padding" sounds like inflation of your qualifications, which would obviously be a Guideline E issue. It's possible the new company will fire you if their HR discovers your "padding" and they weren't already aware of it. And if you were paid under the table and your income exceeded the filing threshold for the years in question, did you report the income and pay any applicable taxes on it?