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how do you deposit fairly large sums of monies in bank for services rendered without having to pay taxes or bank notifying irs
????? So let me get this straight. Then dumb it down.
1. Someone paid you money to do something for them.
2. You want to put this money somewhere but don't want to "declare" it as income or pay any income tax on this income.
* If the person you worked for did not report these wages paid to you or didn't pay any payroll taxes, SSDI, or other state or local taxes on these wages, they committed tax fraud.
* Regardless what they did, if you don't declare this money as income, you are committing tax fraud.
Where you end up putting the money doesn't really matter. You could hide it under your mattress or bury it in the back yard, but if you don't declare this income you are committing tax fraud. You and the person who paid you might get away with it for a while, but might not. Remember, the IRS has two avenues to discover the fraud. You and that person who paid you.
The bank reports interest they pay on the money you have in your accounts to the IRS. Where the money came from...well, not directly. You could find $100,000 in cash under a rock, deposit it into a bank account, and the bank would still report any interest they pay you on that money to the IRS.
I once worked for a shady guy who maintained privately-owned boats. I worked almost full time. He started off paying me in cash, but began paying me by check as my hours and wages increased. Every time he wrote the check he created a paper trail. He never deducted any SSDI or other payroll taxes from my wages. He had his own reasons, partly because he couldn't be bothered to do the paperwork. I realized that either one of us could be audited and the wages would be found. To protect myself, I filed my tax returns as self-employed, paid my own SSDI and taxes. If he was audited, he'd be prosecuted for fraud, not me. If I was audited, I could show I had paid what was appropriate. Once again, he could be prosecuted for fraud, not me.
Protect yourself. Declare the income and pay what is due. Better than being prosecuted and a lot less expensive!! I know there will always be people who expect or demand public services but resent paying their share of what it costs the government to provide them. Are you a freeloader?
Last edited by Parnassia; 07-15-2018 at 01:44 PM..
????? So let me get this straight. Then dumb it down.
1. Someone paid you money to do something for them.
2. You want to put this money somewhere but don't want to "declare" it as income or pay any income tax on this income.
* If the person you worked for did not report these wages paid to you or didn't pay any payroll taxes, SSDI, or other state or local taxes on these wages, they committed tax fraud.
* Regardless what they did, if you don't declare this money as income, you are committing tax fraud.
Where you end up putting the money doesn't really matter. You could hide it under your mattress or bury it in the back yard, but if you don't declare this income you are committing tax fraud. You and the person who paid you might get away with it for a while, but might not. Remember, the IRS has two avenues to discover the fraud. You and that person who paid you.
The bank reports interest they pay on the money you have in your accounts to the IRS. Where the money came from...well, not directly. You could find $100,000 in cash under a rock, deposit it into a bank account, and the bank would still report any interest they pay you on that money to the IRS.
I once worked for a shady guy who maintained privately-owned boats. I worked almost full time. He started off paying me in cash, but began paying me by check as my hours and wages increased. Every time he wrote the check he created a paper trail. He never deducted any SSDI or other payroll taxes from my wages. He had his own reasons, partly because he couldn't be bothered to do the paperwork. I realized that either one of us could be audited and the wages would be found. To protect myself, I filed my tax returns as self-employed, paid my own SSDI and taxes. If he was audited, he'd be prosecuted for fraud, not me. If I was audited, I could show I had paid what was appropriate. Once again, he could be prosecuted for fraud, not me.
Protect yourself. Declare the income and pay what is due. Better than being prosecuted and a lot less expensive!! I know there will always be people who expect or demand public services but resent paying their share of what it costs the government to provide them. Are you a freeloader?
Well.. Depends on the definition of 'fairly large'.. Is it still $500 or less no 1099 has to be submitted on? When I was 18, $500 was a 'fairly large' amount of money, at least to me..
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