What are the legal consequences of not reporting rent income for a property being rented illegally?
I have been living in a house as a tenant for a couple of years. I found the house through craigslist. The live-in landlord has a lease with the homeowner, whose home we share a yard with. I later found out the property is not approved for non-related renters. At the biannual inspections, everyone in the house is forced to leave for the day, and the owner lies to the inspectors, saying we are all related. I also suspect the house is not up to living code, and rent is always paid in cash, both to my "landlord," and then to the homeowner. My landlord has told me he doesn't report the house income. I am about to leave the house, and am considering taking legal action against my landlord and the homeowner, but don't want to ruin anyone's life. What could be the results of taking action?
