I am getting ready to submit a background check to become a licensed MLO. In the process they ask for employment history. My employment history is fine now that I work full time on W2. For 1 year though I worked under the table for my dad when I was 18-19 and made about 17k. When I filed my taxes I filed that money as "gift" so there is no record of employment, self-employment or contract work. I'm wondering if I should list my 2022-23 year as employed, self employed, or part time. My worry is if they find out I worked but paid no taxes then I'm assuming they would probably deny my license since the whole point of my job would be to verify if people are not doing what I did. For more context I am 20 right now.

My question is, What are the implications of working under the table and not paying taxes and would it be safer to say that I was simply "unemployed" in 2023?

TLDR I worked under the table and didn't file taxes. Should I list that year as unemployed or employed for a background check?