She wasn’t “cheating on her taxes”, and it was the boss who insisted on the arrangement. She didn’t have the option to say no. It’s not as though working “off the books” was her idea.
You clearly don’t know how economic power works in this system. Most people, stuck in an exploitive situation like this, have no alternative but to accept it. The only way that will change is if we once again build truly strong labor movement that represents the vast majority of working people. No one can change this strictly as a disconnected individual.