Using money orders to pay: Should my friend be worried?

Question

My friend got in way over his head with credit card debt. Now hes trying to get back on track and use only cash or money orders. He does landscaping on the side and is paid in cash. He then makes payments to his credit card companies via money orders. I told him the IRS may question where the money for the money orders is coming from. He says they dont. Am I right? Does the government question where the money for money orders comes from? Or is he right- they are harder to trace and that they dont question modest, regular payments?

Answer 1

Government may audit a company that has flags such as reasons to audit but why would they even consider looking into your friend???

Answer 2

He could be getting that money from a friend, for all anyone knows.

However, since your friend is evading his income taxes, he should be worried. If he is ever audited, he will be up the proverbial creek. How 'bout we try not living in a perpetual state of crime, eh?

Answer 3

When push comes to shove, the contractor or employer will roll on him. They would rather push the IRS over to your friend than take the heat themselves.

Answer 4

He is probably correct in hiding his income in this way, but remind him tht if IRS should ever question his employers, ie, rental property owners, who write off expenses, then they will probably roll over on him and he will be in deep doo doo.

Answer 5

What "your friend" needs to focus on is that failure to report income to the IRS is a criminal offense and he can go to jail if he gets caught.

Answer 6

What you are saying is your friend is cheating on his tax's. Some day they might just nip him in the butt.....He make this much and he spend so much more, it does raise an eyebrow....Drugs is usually the first thing that come to some people minds.....

Answer 7

he should be okay