I don't make a whole lot of money to begin with, so I ask my clients to pay me with cash, or a check made payable to cash. But I still have to endorse it and put my account number. Is this traceable? Does the bank take note, even if I don't deposit it? Can I go to tax jail for this?!
2006-09-22 15:08:44 · 9 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
It is totally traceable and will also be questioned if you are ever audited. It's only not traceable if it's not associated with your account. For instance, some banks do not require you to put your account number on the check and some grocery stores will cash these checks. If your bank requires you to put your account number on the check, it can be traced.
What I do is take the check to the client's bank. Their bank will cash it without you having an account because the check is from their bank.
2006-09-22 15:12:23 · answer #1 · answered by Mama R 5 · 0⤊ 0⤋
Banks and the IRS are pretty good at finding loopholes like this.
As for tax jail, it's unlikely simply because the IRS doesn't have the resources it used to. They'd probably prefer to fine the bejesus out of you, anyhow. State agencies are a different matter, however. Some can be ... quite ... unpleasant to deal with.
While I have sympathy with you for having a limited income and trying to make a go of running a business, what you're doing is dangerous, not to mention unethical. I really can't recommend it.
2006-09-22 15:17:30 · answer #2 · answered by IrritableMom 4 · 0⤊ 0⤋
yes. because you have to endorse it. and your client gets the check back. Now a days, the check front and back is scanned electronically, so there is a bank record whether you cash it or deposit it. you are cheating the government and all the residents of your tax country. Indirectly, you are a thief.
if you routinely been doing this, yes you can go to jail.
2006-09-22 15:18:21 · answer #3 · answered by McDreamy 4 · 0⤊ 0⤋
Sometimes the client is audited, and even if he paid you as a check made payable to cash, he will tell the IRS that he paid you.
2006-09-22 15:18:29 · answer #4 · answered by fcas80 7 · 0⤊ 0⤋
As far as I know, you can only "cash" it in the ulster bank, but you should be able to pay it into your own account - take it to your local branch. Alternatively, there are cheque cashing services throughout the uk that you could use, but they usually charge a % of the cheque value for cashing it (the % charged normally goes down as the value of the cheque goes up, as I recall).
2016-03-18 00:11:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
cash is cash, cheques to cash leaves a paper trail. Start collecting receipts sounds like you will need an alibi
2006-09-22 15:13:15 · answer #6 · answered by ava_weis 2 · 0⤊ 0⤋
May I suggest that you open a checking account in the name of your business and you can have your customers make checks to the busines like: ABC, Inc. or ABC property managers.
Good luck.
2006-09-22 17:49:51 · answer #7 · answered by soar_2307 7 · 0⤊ 0⤋
cash the checks and dont run them through your acct. cash the check then deposite it.
2006-09-22 15:16:47 · answer #8 · answered by Mom 5 · 0⤊ 0⤋
If you take the money, you will face possible jail time for fraud and commingling. You will be convicted and you will lose your job.
2006-09-22 15:19:53 · answer #9 · answered by Anonymous · 0⤊ 0⤋