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Vinci
I'm You



Registered: 08/26/19
Posts: 629
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Audits and cash
#27631393 - 01/24/22 07:15 PM (2 years, 3 days ago) |
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Let's say I'm legally unemployed since March 2020 and I made $30,000 between then and June 2021 from unemployment. Between Jan 2021 and Jan 2022 I've put cash into my bank by depositing $1000 money orders online about 7ish times. I've also received venmo payments of less than $300 a piece adding up to maybe $2000ish. Right around $10,000 of unexplained income this tax season. Should I be worried about being audited/investigated? If I were to be audited/investigated, what might that look like?
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙


Registered: 05/08/01
Posts: 23,417
Loc: city of angels
Last seen: 1 minute, 3 seconds
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Re: Audits and cash [Re: Vinci]
#27632087 - 01/25/22 11:57 AM (2 years, 2 days ago) |
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Since you're getting paid unemployment benefits, that may increase your risk profile of an audit a bit, however the IRS is ridiculously underfunded and behind schedule, so for the amount of money you're talking about, I wouldn't think it worth their time to investigate. However, if you do get caught avoiding legitimately owed taxes, expect a minimum 10% penalty + interest due.
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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Eclipse3130
Servant of the Fungi



Registered: 10/06/13
Posts: 6,220
Loc: PNW
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Re: Audits and cash [Re: geokills]
#27638239 - 01/30/22 05:58 AM (1 year, 11 months ago) |
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Worry doesn't help anyone. Report the taxable income if you want to rid the worry, or if it was illegal then don't report it. Cash transactions aren't reported to the IRS unless it's over 10k in one shot, and PayPal/Venmo doesn't report unless they are business transactions
-------------------- "In The Material World One seeks retirement and grows Old In The Magical World One seeks Enlightenment and grows Wiser In The Miraculous World One seeks nothing and grows Lighter As we all tread the Homeward Path we will explore many Realms And one day... we will all Realize that all experiences are Simply Different ways in which The All-That Is Perceives Itself"
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Ice9
3X Ban Lotto Champion



Registered: 03/20/14
Posts: 11,229
Loc: daterapeville,USA
Last seen: 3 minutes, 1 second
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Give me the non-reportable income. I will report, don't you worry
-------------------- The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man. -- George Brenard Shaw
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Vinci
I'm You



Registered: 08/26/19
Posts: 629
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Re: Audits and cash [Re: Ice9]
#27639621 - 01/31/22 12:23 PM (1 year, 11 months ago) |
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Quote:
Ice9 said: Give me the non-reportable income. I will report, don't you worry 
Ok, thx
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LotKid
Never.Trust.A.Prankster



Registered: 01/07/17
Posts: 8,169
Loc: Shakedown St.
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Quote:
Eclipse3130 said: Worry doesn't help anyone. Report the taxable income if you want to rid the worry, or if it was illegal then don't report it. Cash transactions aren't reported to the IRS unless it's over 10k in one shot, and PayPal/Venmo doesn't report unless they are business transactions
Theyre trying to make the reporting limit $600 and not $10k
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