What is the name of your state (only U.S. law)? WI
A tree service contractor just removed a tree from my property. I was originally told the cost would be $100 plus tax. When he came to collect the money, I gave him the cash since I didn't have enough in my checking account. He then said there was no sales tax if I paid in cash. But then I asked for a receipt since I paid cash. He started to protest, saying that the tree has already been cut down. The thing is, the receipt is for MY protection to prove that I paid him so he couldn't come back and say I never paid him anything, and I wouldn't have proof without a cancelled check that I actually did. He ended up writing me a receipt.
I don't know if there's an unwritten rule about this or not, but I was just wondering if maybe there is. If a contractor doesn't charge me tax since I paid cash, should I have asked for a receipt? Or should I have not done that? I imagine that if I pay cash, and there's nothing in writing, then he could avoid paying taxes on that income. So by asking for a receipt, was I somehow wrong? Should I have just not done that since he didn't charge me the sales tax?
A tree service contractor just removed a tree from my property. I was originally told the cost would be $100 plus tax. When he came to collect the money, I gave him the cash since I didn't have enough in my checking account. He then said there was no sales tax if I paid in cash. But then I asked for a receipt since I paid cash. He started to protest, saying that the tree has already been cut down. The thing is, the receipt is for MY protection to prove that I paid him so he couldn't come back and say I never paid him anything, and I wouldn't have proof without a cancelled check that I actually did. He ended up writing me a receipt.
I don't know if there's an unwritten rule about this or not, but I was just wondering if maybe there is. If a contractor doesn't charge me tax since I paid cash, should I have asked for a receipt? Or should I have not done that? I imagine that if I pay cash, and there's nothing in writing, then he could avoid paying taxes on that income. So by asking for a receipt, was I somehow wrong? Should I have just not done that since he didn't charge me the sales tax?