does a person who writes checks to the order of "cash" (instead of the name of the other person) have to report to the IRS about how much they spend or who they are paying? is it against the law to have checks written for "cash"? if someone writes you a check (small amount of money) and you don't declare it, is it traceable?
2007-03-05 17:05:47 · 3 answers · asked by saxoool 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
No one is required to report anything that totals less than $600/year.
In other words, if you're the one writing the check and it's less than $600 that you'll be paying someone for the year, you don't report that to the IRS. Ditto for the person receiving the money.
However, it's a moot point if you're writing checks to "cash" as there's really no way to trace those, unless someone went looking with the express purpose of tripping you up (ie. looking at the details of who signed off on the back of the check.)
No, it's not illegal to write checks to cash. That's how I cash checks at my bank.
The only thing is... if you're paying someone cash, you may be missing an opportunity to take the money off your taxes (if what you're paying them for is something that might be deductible.)
2007-03-05 17:14:30 · answer #1 · answered by ISOintelligentlife 4 · 0⤊ 2⤋
It's legal to write checks for cash. It's not legal to pay someone "under the table" or to take such payments without reporting them on your tax return.
Traceable? Maybe, depending on how much someone, like the IRS, wants to.
2007-03-06 12:52:18 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
payment or the act of paying even by check is never reported to the irs except if it is a legit donation that can be deductible to taxes you pay
2007-03-06 01:16:48 · answer #3 · answered by tolitstolites 3 · 0⤊ 1⤋