Does the IRS check to see how much money you have?

Question

I have a friend who has a regular job that she pays regular taxes from just like every body else. But my friend also has a side business that is not lisenced and does not pay taxes on. Does the IRS check these things?I mean if her bank shows she is depositing $15,000 more a year then what her w-2 says, do they investigate that kind of stuff? or is there any way she would get caught?

Thanks,

Answer 1

They do but they keep getting the same number over and over again :  Zero = 0 ! lol

Reagrds.

Answer 2

Of course "your friend" can get caught: If she's audited by the I.R.S., they will investigate her income, her bank balances, her expenditures, and she could be ordered to pay all her back taxes, reaching back years. (The likelihood that she'd go to jail for tax evasion, however, is probably minimal if the amounts are not giant and it was a simple case of failure to report income, not some elaborate scheme.) You can never be quite sure if you will be flagged for an audit, but irregularities and inconsistencies, when compared to others matching your general, can draw the I.R.S.'s attention. In any case, when your friend doesn't pay her taxes, she is essentially asking the honest taxpayers of American to pay FOR her, to carry her burden -- for things like roads, schools, police services -- and that is really stealing, by another name.

Answer 3

Bank on it---It may take a while but sooner or later she'll have to answer, also by the time this situation catch up with her--penalties may be added, it's not worth the trouble be honest.

Answer 4

Sure.

Why not?

With the Sheriff of Notthingham?

If they want to.

Since the transaction is chicken feed.

Few seeds of corn left.

It's not worth picking it.

If they were good and sharp.

Will not get away from them.

Luke 8.10,17

What do you think?

Answer 5

Good and interesting question.

I know banks are required to report large deposits (I forget the amount) to Dept of Treasury.

It leads to the question of, if the IRS said they don't check, should we believe them?

Anyone know how much a deposit has to be before it's reported?

Answer 6

If her deductions are unusual for the amount in income a red flag could start an audit to find out how they maintain a lifestyle higher than what they believe the income can provide.

Answer 7

they dont know how much i make so i  wouldnt think so.

Answer 8

Most likely no.  Every once in awhile people get caught up but it is rare.  They do not keep a check on your bank account or anything like that.  I don't think she will get caught unless someone reports her.