If I buy something on E-bay (with a money order) that costs thousands of dollars, will the IRS learn about it?

Answer 1

All transactions in excess of $10000. are monitored by the Treasury Department. This is in a single transaction of money movement.

Example; If you purchase an automobile for $11000. and pay for it with a personal check, your bank is required to report the movement of money when the transaction is in excess of $10000. But if you pay for it with a $4000. check from one account and a $7000 check from another there will be no report.
Money orders are the same way as are bank checks or drafts,
all of these if over $10000 get reported.

Exceptions: When a single outlet of a store consistantly makes out money orders in excess of $5000. This becomes a pattern of purchases of money orders which are reportable also. This falls under three parts of the government oversite.
first from the FBI and gang crime under the RICO laws.
second is from Homeland Security in the investigation of possible terrorist activity
third is the Treasury Dept again in their oversite of money transfers out of the country which is not legal unless declared with proper banking procedures.

Will the IRS find out about it? If it is outside your normal standard of living spending patterns ??? Maybe.-- It is strange how they find out about stuff.

Hope this helps.

Answer 2

It is possible. Whoever sells you the money order can make a suspicious report if they feel that there is a reason to. They are required to report if the transaction is over 10,000.
You should consider why you do not want the IRS to find out.

Answer 3

eBay does not send any information to the IRS about transactions unless you are being investigated for tax fraud. If you do any transaction over 10,000 dollars the bank is required to notify the irs.

Answer 4

What does the IRS have to do with it?? They don't care what you buy!