do i have to report it to the irs , or pay the taxes for it ?
2007-03-28 11:56:14 · 10 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
it a friends check from from a mortage company its not even mine do i still have to report it
2007-03-28 12:14:52 · update #1
If you don't report it, even if it is not taxable, the IRS will find out about it within about two years, then question you about it. If it is taxable, you could owe substantial penalties amounting to almost 40%.
2007-03-28 12:00:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If it's not yours, do NOT deposit it.
Most likely the bank wouldn't let you deposit it, regardless.
However, you do NOT want to deposit it because it will create a very large suspicion on the part of several government agencies. First, because the sum is over $10,000, it will be reported to the IRS (as others have alluded.) But there's more to this picture. What you've described doing (depositing someone else's check and particularly for a large sum of money) will, at a minimum, put you on a watch list for money laundering.
That's why the bank will most likely not allow you to deposit it -- they've been trained on anti-money laundering rules and anyone paying attention will have issues with completing this transaction for you.
Your friend may have a perfectly legitimate reason for not wanting to deposit the check into their own account (perhaps they don't have an account, for instance); however, that's not going to make any difference to the FBI and alphabet soup of other Federal officials who could potentially make BOTH your lives very complicated (or, at the very least, have you both living under a microscope.) This is because a LOT of the money-laundering types wouldn't have bank accounts. That's the nature of the beast.
Seriously -- this is a BAD, BAD, BAD idea. Tell your friend to go open a checking account with the check. Or almost anything else except this.
2007-03-28 19:26:40 · answer #2 · answered by ISOintelligentlife 4 · 0⤊ 0⤋
i just have ot put out there that deposits over $10,000 IN CASH have to be reported. checks are not. with that amount the bank has the right to hold the check for up to 7 business days before they will release the funds, but if the check is not made out to you the bank probably won't do it.
2007-03-29 12:18:09 · answer #3 · answered by rgehron1031 3 · 0⤊ 0⤋
The bank has an obligation to report on any transaction greater than $10K to the IRS. So, they already know about it.
2007-03-29 17:41:06 · answer #4 · answered by Steve R 6 · 0⤊ 0⤋
If not cash does not get reported. Questions may arise from other sources but not assumed to be taxable. Get it out of bank into schwab.com or other broker and invest. That is more importnat issue
2007-03-28 19:19:36 · answer #5 · answered by vegas_iwish 5 · 0⤊ 0⤋
It will be reported to the government.
You'll have to explain the source.
All deposits of $10,000.00 or more must be reported by banks.
2007-03-28 19:06:47 · answer #6 · answered by ed 7 · 0⤊ 0⤋
the balance on your bank account will go up by 40,000.
On a serious note, if there is a legal explanation for it, there are no worries at tax time.
2007-03-28 19:00:40 · answer #7 · answered by bpl 5 · 0⤊ 0⤋
any thing over 3000.00 dollars gets reported-sorry
2007-03-29 01:22:43 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It would depend on how you received the money and if you accrue any interest on the money.
2007-03-28 19:01:23 · answer #9 · answered by Mariposa 7 · 0⤊ 0⤋
Tell them it was a loan repayment and you probably can get away with it.
2007-03-28 18:59:23 · answer #10 · answered by csucdartgirl 7 · 0⤊ 0⤋