If I write a check for 30k, what would happen? Like dealing with the IRS? or getting a call from the bank?

Answer 1

If you have the money in the bank, the bank won't call you. If you don't expect one from the Sheriff instead. The IRS is not permitted to monitor bank accounts. It will not know you had that much money unless you were already being investigated for criminal reasons. Usually, not using bank accounts to avoid the IRS fails miserably. The IRS will just then require you to justify the ownership of all your assets and explain how you pay your bills. Since you lack a paper trail it will be very difficult to explain how you own what you own and do what you do and they can pick any reasonable amount they want you to pay with penalties and interest.

Further, most people who hide money mistakingly believe there is a tax on how much money you own. There is only a tax on how much money you earn as income. If you are paid 30 k to build a house for someone, they are actually supposed to report you to the IRS on their own. You may see it as avoiding taxes but if they go to an accountant the accountant will have them fill out the forms so the IRS will know. Hiding from the IRS is stupid. If someone gives you 30K there is no tax. If you earn it and hide it, you could go to jail. All to avoid $1000 in taxes?

Answer 2

Like if you don't report income and you buy a $30k car. Oh they'll find out.

Answer 3

Of course, if you don't have the money in your account, the check would bounce, and you would end up spending the rest of your life on the run.

Answer 4

The bank is required to report ANY cash transaction over 10K. For rules on what is cash see
http://www.yale.edu/tax/docs/rules_def_8300.pdf

Answer 5

write a cheque for as much as you want to
as long as you have the money there to cover it
no one cares

Answer 6

as long as you have the funds, nothing will happen. Its your money.