can the IRS intefere with my bank account or take money from it?

Question

i have money saved in my bank account....i work off the books..legal work...i will open 2 bank account tommorw with about 4000 each...will the irs or govenrmet see this? doesi t look illegal...and more money will be put in later on..thanks

buddy....im off the books because it is a CASH buisness..half the U.S works on that and it tottally legal.

im a depednet and i live at home with my parents and i get paid thru my dad for work.

Answer 1

Gee, let's see, you've just asked a question that indicates that you are evading taxes, humn, let me think about whether the irs or the government will find out about this. Probably now, yes. By the way, the irs does look at a person's lifestyle to see if how they live matches what they claim for a tax return. I think you're playing with fire, and will get burned.

Answer 2

If you're "off the books" you ARE illegal. That's what the term "off the books" implies. Merely receiving cash income isn't illegal as long as you properly declare all income and pay the taxes due. Running an all-cash business IS a red flag for the IRS and WILL increase your chances of audit substantially.

If you work in a family business and are being paid under the table in cash then both you AND your father are breaking the law, by the way. He's evading payroll taxes and you are evading all taxes. Not very smart for either of you.

If you don't pay your taxes the IRS can and will attach any assets you have including bank accounts. That happens to thousands of folks in your exact situation EVERY year.

Answer 3

Working off the books is SO illegal. Just ask my uncle - he spent 4 years in a federal penitentiary for this. Your question puts you and your Dad both in this situation. It's called tax evasion and tax fraud. The IRS can and will seize you and your dad's assets - they usually will allow you to keep your home and one car so you can keep working and pay off those back taxes, fines and penalties. That is, after you all get out of jail. The IRS normally only sees transactions of $10,000 or more. The banks are required to report these transactions. If the IRS audits you, they can look at everything in your bank account and will.

Answer 4

I don't know where you live but in the United States the banks turn in everyone's information to the IRS for taxing reasons and at tax time you will get a form from the bank and they give the IRS the same information, If your working off the books and pocketing untaxed income and putting it into a financial institute like a bank you are telling the IRS yourself and you will get caught, oh and working off the books is not considered legal work. Boy your not real smart are you.

Answer 5

Not reporting and paying taxes on cash, off the books income is NOT totally, or even partially, legal. It's tax evasion. And yes, if and when the IRS catches up to you, they can take your bank account to pay what you owe.

Not sure where you get your info that "half" of the US works off the books. Are you the only one? Absolutely not. But it's not likely anywhere near that high.

And anyway, when you used that kind of arguement as a kid, didn't your mother ever say "if everyone else jumped off a bridge, would you do it too?"

Answer 6

The money you put into the bank will not be reported. Yes,At the end of the year, the bank will send you and the I R S a 1099 form, stating the amount of interest paid to you, not the amount you have in the bank. Check with the bank on this before you deposit, but I am pretty sure that a transaction has to exceed $10,000 before the amount is reported, and that is because it helps track illegal drug activity. Yes, It is illegal to not report income to the I R S , even cash, and you are right , many taxpayers do it. I don`t believe I`d be advertising it to the world on Yahoo, though. I R S cannot seize your assets without a court order.

Answer 7

It is totally ILLEGAL to work for cash and not report that on your tax return. Just because a lot of people do it, doesn't make it legal.

Yes, the IRS can seize your bank accounts and any other assets you have. They can also throw you in jail.

If you work for your father's company, then not only are you commiting tax fraud by not reporting your income, your father's comapny is also. (FUTA, SUTA and employer's share of FICA not to mention Workers' Comp)

Answer 8

If your work is legal and you are reporting your income and paying your taxes, you needn't worry about the IRS, who will receive a report of any interest you earn and large deposits or withdrawals of currency from the bank.

If you are saying that you are not reporting and paying taxes on your cash income, then you are evading taxes and are subject to assessment of back taxes and penalties, seizure of your assets, levy of your bank accounts, and possibly indictment and imprisonment.

Since you have added that you receive money from your father, let me say that family employees are not subject to self employment tax. Therefore, as long as your Dad is not deducting your wages as business expenses, he is (in effect) paying your taxes. This is not really proper book-keeping, but probably isn't tax evasion. In fact, he may be overpaying his taxes since you are probably in a lower bracket.

Answer 9

If your father pays you more than $600 for the year as an independent contractor (I'm assuming this is what you mean by "off the books") he is required to issue you a 1099 for the money paid to you if he wants to use it as a business deduction. When he issues you the 1099 he sends a copy to the IRS who will "match" it to your 1040, which will need to have a schedule C showing all the 1099 income that you were paid. (as an independent contractor you will also be eligible to deduct expenses related to this work). If your father is "gifting" you more than $12,000 for the year - i.e. not using a business deduction or issuing a 1099 for the money he gives you - Then he will need to do a gift return and possibly owe gift taxes on this amount (subject to additional exclusions).

To get to the basic of your question - $4000 deposits do not require an explanation of the source of funds.