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Are you planning on declaring & payimg taxes on those pension checks as income on your income tax returns? Because the paper trail created will show them as yours..
.deposited & cashed through your acccount. It is basically launderimg funds.
I have been asked to cash Pension Checks against my account, and give the person cash to avoid the money being taken out of his account from creditors. Sounds shady, and feel I could possibly expose myself to some sort of problem, could there be issues ?
The only answer that was offered when we asked why he cannot cash his own check, was "I don't want people taking my money".....when asked "what people", the answer was "People !....can you do it or not !"....told him "We will discuss it when the check arrives"
what if it's a bad check but the bank doesn't learn this until 2 days after you gave him the cash. The bank will come after you for the money.
Don't do it. You don't want your bank account info showing on the back of his deposited check.
Quote:
Originally Posted by beer belly
Never considered that
It only came to mind because I hope to win a civil lawsuit next week. I had the bank send me front and back copies of a canceled check so I have their bank info if I need to garnish their checking account.
I have been asked to cash Pension Checks against my account, and give the person cash to avoid the money being taken out of his account from creditors. Sounds shady, and feel I could possibly expose myself to some sort of problem, could there be issues ?
The better question is why should you do it? Are you willing to get involved in what could become a money laundering scheme?
Are you planning on declaring & payimg taxes on those pension checks as income on your income tax returns? Because the paper trail created will show them as yours..
.deposited & cashed through your acccount. It is basically launderimg funds.
I agree with this position, so you file taxes and don't claim this 50 or 75k a year you are running through your account on your taxes as income, what do you say to the IRS when they ask why didn't you claim this income? At best, your going to have a hefty tax bill with penalties and interest your going to have to pay, and if they don't pick it up on this for several years, that's even higher penalties and interest. Generally this will not result in prison, so long as you agree to pay what you own. The government just wants it's cut, it costs to throw you in federal prison. Even Richard Hatch who was blatant with his income tax evasion could have avoided prison if he agreed to pay when he owed, but with his ego thought he could beat the IRS in court and spent 51 months in prison learning your can't beat the IRS.
Are you sure they can?
The law generally prevents creditors from garnishing private pensions and other retirement savings vehicles that fall under the Employee Retirement Income Security Act. https://www.freecreditreport.com/blo...sion-benefits/
They can't go after or touch the pension payment check, but once it's deposited in a bank, it becomes cash subject to forfeiture. The person would need to cash the check and keep the cash in their pocket, or they need to have it deposited into an IRA (or similar retirement account) and draw from that. Once it becomes just money in the bank, creditors can go after it.
There’s nothing illegal about cashing a check someone signed over to you. If the check is good, you have no reason to worry. No one can go after you for someone else’s debts.
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