cd -
officially the guy who the check is made to is responsible for any taxes, but only way IRS could prove it is if the friend who is going to deposit it payed the guy himself with a check instead of cash. it's all about the paper trail IF it ever came to it (which is unlikely)
if he was smart he would have his friend just cash the check instead of depositing it. that way there is no papertrail - he would need to have at least 15K (in case check bounced) in his account and be a long time customer for the bank to do this. this is what I do. you gotta be a fucking fool to pay taxes on your winnings unless it's your main source of income. too easy to hide.
officially the guy who the check is made to is responsible for any taxes, but only way IRS could prove it is if the friend who is going to deposit it payed the guy himself with a check instead of cash. it's all about the paper trail IF it ever came to it (which is unlikely)
if he was smart he would have his friend just cash the check instead of depositing it. that way there is no papertrail - he would need to have at least 15K (in case check bounced) in his account and be a long time customer for the bank to do this. this is what I do. you gotta be a fucking fool to pay taxes on your winnings unless it's your main source of income. too easy to hide.
done many checks over 5K from books through my bank, even 20K and never had a problem. pays to have a good relationship with your banker. not sure where these rumors about large checks are coming from. yeah, if you keep an average balance of $91 and try cashing a $5K check they may question it.
No it isn't. The responsible party is the one who gets the money, and they are only responsible for paying taxes on it if it is income. If they have a net loss, they don't have to pay anything. Regardless, the bank isn't sending out a 1099. I don't know why people think the IRS has records of every deposit, and that taxes are required on every deposit.
Nobody pays taxes, unless it is income. If I loan you 10K, and you write me a check for 10K 6 months later, nobody owes anything. If you wrote me a check for 11K, I would owe taxes on the 1K interest. But it's not like that would ever get reported by the bank, and 99% of people wouldn't claim that 1K in income on their taxes.
In this case, if two people were splitting offshore accounts, the correct way to pay taxes would be to pay on what each one made after the money was properly divided up. The person whose name was on the check doesn't mean anything, if he turns around and pays some of it to his buddy. The net proceeds for each individual are what is taxable. Again, you aren't getting a 1099 from the bank for depositing a check. You gotta learn the difference between debts being paid, and income.
Ive been reading this thread and I have to comment.
Actually ILLINI is correct. BUT....I believe that the question has not been answered as asked. the question was WHO GETS REPORTED TO THE IRS.
the answer is simple: its not who gets reported ..its what gets reported.
FACT:
Both parties transactions would be reported. All TRANSACTIONS in excess of $$9999.99 are reported to the IRS wether it be a deposit, a withdrawal, or a check being cashed ....does not matter.
Now , what the IRS does with this imfo is beyond me but in my personal opinion .....I would think , NOTHING, unless you are a fool and put yourself into AUDIT. Then you are on your own and could possibly bring some heat on yourself. I would not want to be in that position.
best bet is this .....keep em around $$ 7,500. You can deposit 1 everyday for $7500 with no reporting and you have no problem.
QOH's
Actually ILLINI is correct. BUT....I believe that the question has not been answered as asked. the question was WHO GETS REPORTED TO THE IRS.
the answer is simple: its not who gets reported ..its what gets reported.
FACT:
Both parties transactions would be reported. All TRANSACTIONS in excess of $$9999.99 are reported to the IRS wether it be a deposit, a withdrawal, or a check being cashed ....does not matter.
Now , what the IRS does with this imfo is beyond me but in my personal opinion .....I would think , NOTHING, unless you are a fool and put yourself into AUDIT. Then you are on your own and could possibly bring some heat on yourself. I would not want to be in that position.
best bet is this .....keep em around $$ 7,500. You can deposit 1 everyday for $7500 with no reporting and you have no problem.
QOH's
