Taxes and Auction Site Question

[glchen]

As others have said, it is much better to just go by the IRS rules and pay what taxes you properly owe. There are too many ways for the government to catch you, which would cause big problems that aren't worth it. For example, if there is a deposit into your bank account over 10K, the bank will report that to the government. If you have your friend report that sale on their taxes for you, the IRS may audit him, and ask for his receipt for the cost basis of the card, and he will get in trouble if he submits something fraudulent. Too many possibilities for this to go sideways.

[russkcpa]

Originally Posted by glchen

As others have said, it is much better to just go by the IRS rules and pay what taxes you properly owe. There are too many ways for the government to catch you, which would cause big problems that aren't worth it. For example, if there is a deposit into your bank account over 10K, the bank will report that to the government. If you have your friend report that sale on their taxes for you, the IRS may audit him, and ask for his receipt for the cost basis of the card, and he will get in trouble if he submits something fraudulent. Too many possibilities for this to go sideways.

The bank will report DEPOSITS OF CASH for $10K or more ......and don't try to outsmart the bank by staggering cash deposits that in the aggregate exceed $10K That is more egregious.