Buying a new car from a dealer with a cashiers check from bank. IRS PROBLEMS?
I plan to buy a new car with a cashiers check from Bank of America and I was wondering if I will have IRS problems. I did not file taxes last year but I have some cash in my savings account. The cost of the car is about $40000. WIll I have any problems with the IRS?
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April 29th, 2010 at 8:31 am
Depends on whether you can prove to the IRS’s satisfaction that the source of the funds was legit – an inheritance, etc. If the funds came from legal sources, you should have no problems.
April 29th, 2010 at 8:39 am
The bank will report the cashier’s check to the treasury.
The IRS will be aware of it, but won’t care–have you gotten your CP59 yet asking for your tax return?
April 29th, 2010 at 9:06 am
File your taxes for last year and pay what is owed. That is the only way not to have troubles with the IRS. Failure to file is a federal crime (tax evasion). Filing but failing to pay is a lesser issue. They will work out a payment plan with you if needed.
April 29th, 2010 at 9:34 am
It depends whether your bank account grew during 2008 and whether you can account for where the money came from.
Another poster with unreported income of just $10,000 in their account found it seized by the IRS.
April 29th, 2010 at 9:51 am
If you withdraw $40,000 from your savings account in the form of a cashier’s check IRS won’t hear about it.
April 29th, 2010 at 10:20 am
There should n/t be. You may be questioned but if the answer is that you got th money from monies in your bank account, no problem. The dealership is required to report monies paid to them in cash or any instrument because of money laundering, Ill-gotten monies can be converted to cashiers check to cars, you dispose of the car you get clean money. It can go on and on and before you know it you don’t know its “dirty” money