Will the IRS track a big deposit into my bank account?

Question

I resell furniture and I've deposited around $250,000 in large checks into my bank account this year which is not normal for me. However, I've spent about 220,000 purchasing the new furniture for clients and I've only made about 30,000. I have another full time job where I report approximately the same income every year, and there will be no 1099's filed other than from my main course of employment. What are the chances that the IRS will audit me if I don't report the 30,000 in income???

Answer 1

According to the IRS, all transactions greater than $10,000 is reported via the Currency Transaction Report by banks.

Answer 2

US banks are required by law to notify the IRS of large or unusual bank transactions. You can bet the IRS is aware of your large deposit.

Answer 3

If it was $300, probably a slim chance.

But $30,000 will get noticed.

And $250,000, well, that always gets their attention.

1) Save your receipts.

2) Make sure you have separate bank accounts for your personal and your business.

Answer 4

Of course IRS knows everything, the bank has to report all transaction to the IRS.  Make sure to keep your receipts and good records for when they audit you.