Sure, but they can’t really figure out where the work is being done if it is being transferred digitally, not unless they subpoena email records etc. I don’t think that is happening now and a lot of companies are getting work done that can be transferred digitally from foreign locations.
Somebody is paying somebody. There are invoices and funds are being transferred. As to subpoenaing emails the IRS will subpoena the blood from your children’s veins if they feel like it and a Judge will sign off on anything they want.
This isn’t that hard for a tax auditor to figure out. When the IRS sink in their teeth they don’t let go until they are satisfied.
Most people are not willing to do prison time to help their employer steal some tax money. Good Lord knows I’m not.