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mk86

Question about balance transfer and INCOME TAX

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

WHAT BUSINESS REASON DOES THE

IRS HAVE FOR LOOKING AT YOUR

CHECKING/SAVINGS ACCOUNTS????

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

WHAT BUSINESS REASON DOES THE

IRS HAVE FOR LOOKING AT YOUR

CHECKING/SAVINGS ACCOUNTS????

 

 

Because I heard that the IRS always checks your exisiting checking account for the total amount of money going in and out.

 

Its the part of the reason why people that get paid in CASH instead of checks can avoid paying a hefty amount of tax. These are people that work in MOM&POP grocery stores.

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

WHAT BUSINESS REASON DOES THE

IRS HAVE FOR LOOKING AT YOUR

CHECKING/SAVINGS ACCOUNTS????

 

 

Because I heard that the IRS always checks your exisiting checking account for the total amount of money going in and out.

 

Its the part of the reason why people that get paid in CASH instead of checks can avoid paying a hefty amount of tax. These are people that work in MOM&POP grocery stores.

THAT IS NEWS TO ME!!!

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

WHAT BUSINESS REASON DOES THE

IRS HAVE FOR LOOKING AT YOUR

CHECKING/SAVINGS ACCOUNTS????

 

 

Because I heard that the IRS always checks your exisiting checking account for the total amount of money going in and out.

 

Its the part of the reason why people that get paid in CASH instead of checks can avoid paying a hefty amount of tax. These are people that work in MOM&POP grocery stores.

THAT IS NEWS TO ME!!!

 

 

Yes, and when the IRS compares your declared TOTAL ANNUAL INCOME and the total ammount you spend and earn by examining your checking account/credit report, if there is a conflict (total spending and earning EXCEEDS your total declared annual income), you'll get in trouble.

 

Or at least thats what I heard.

 

That is why im worried that deposting huge sums of balance transfer checks might set off a RED ALARM for income tax deception, when it is actually not actually an income, but a loan. I am worried that they might think my cash loan from 0%BALANCE TRANSFER checks is part of my ACTUAL income!

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

WHAT BUSINESS REASON DOES THE

IRS HAVE FOR LOOKING AT YOUR

CHECKING/SAVINGS ACCOUNTS????

 

 

Because I heard that the IRS always checks your exisiting checking account for the total amount of money going in and out.

 

Its the part of the reason why people that get paid in CASH instead of checks can avoid paying a hefty amount of tax. These are people that work in MOM&POP grocery stores.

THAT IS NEWS TO ME!!!

 

 

Yes, and when the IRS compares your declared TOTAL ANNUAL INCOME and the total ammount you spend and earn by examining your checking account/credit report, if there is a conflict (total spending and earning EXCEEDS your total declared annual income), you'll get in trouble.

 

Or at least thats what I heard.

 

That is why im worried that deposting huge sums of balance transfer checks might set off a RED ALARM for income tax deception, when it is actually not actually an income, but a loan. I am worried that they might think my cash loan from 0%BALANCE TRANSFER checks is part of my ACTUAL income!

 

Where did you hear this from?

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

WHAT BUSINESS REASON DOES THE

IRS HAVE FOR LOOKING AT YOUR

CHECKING/SAVINGS ACCOUNTS????

 

 

Because I heard that the IRS always checks your exisiting checking account for the total amount of money going in and out.

 

Its the part of the reason why people that get paid in CASH instead of checks can avoid paying a hefty amount of tax. These are people that work in MOM&POP grocery stores.

THAT IS NEWS TO ME!!!

 

 

Yes, and when the IRS compares your declared TOTAL ANNUAL INCOME and the total ammount you spend and earn by examining your checking account/credit report, if there is a conflict (total spending and earning EXCEEDS your total declared annual income), you'll get in trouble.

 

Or at least thats what I heard.

 

That is why im worried that deposting huge sums of balance transfer checks might set off a RED ALARM for income tax deception, when it is actually not actually an income, but a loan. I am worried that they might think my cash loan from 0%BALANCE TRANSFER checks is part of my ACTUAL income!

 

Even if this came to pass you could document the BT on your credit card statement.

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

WHAT BUSINESS REASON DOES THE

IRS HAVE FOR LOOKING AT YOUR

CHECKING/SAVINGS ACCOUNTS????

 

 

Because I heard that the IRS always checks your exisiting checking account for the total amount of money going in and out.

 

Its the part of the reason why people that get paid in CASH instead of checks can avoid paying a hefty amount of tax. These are people that work in MOM&POP grocery stores.

THAT IS NEWS TO ME!!!

 

 

Yes, and when the IRS compares your declared TOTAL ANNUAL INCOME and the total ammount you spend and earn by examining your checking account/credit report, if there is a conflict (total spending and earning EXCEEDS your total declared annual income), you'll get in trouble.

 

Or at least thats what I heard.

 

That is why im worried that deposting huge sums of balance transfer checks might set off a RED ALARM for income tax deception, when it is actually not actually an income, but a loan. I am worried that they might think my cash loan from 0%BALANCE TRANSFER checks is part of my ACTUAL income!

 

Where did you hear this from?

 

From friends that get paid in CASH. They seem to know a lot about these things and the LOOPHOLES.

 

People that get paid in cash can litterally avoid paying taxes since there is no record. BUT IF YOU GET PAID IN CHECKS, LIKE WORKING AT WALMART, YOU CANNOT HIDE THAT RECORD SINCE YOU HAVE TO DEPOSIT IT IN YOUR CHECKING ACCOUNT. AND THAT CHECK YOU DEPOSIT WILL COUNT AS INCOME IN THE EYES OF THE IRS.

 

That is why i ask this balancetransfer check question.

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It's the same thing with MERCHANTS and sales tax.

 

Merchants can avoid charging SALES TAX to its customers if the customer pays in CASH. With credit card, it is all recorded so YOU MUST PAY SALES STATE TAX.

 

Its the main advantage of using CASH instead of credit cards if you give the MERCHANT the wink.

 

SOURCE: http://en.wikipedia.org/wiki/Tax

 

Sales tax

 

Sales taxes are a form of excise levied when a commodity is sold to its final consumer. They are generally held to discourage retail sales. The question of whether they are generally progressive or regressive is a subject of much current debate. People with higher incomes spend a lower proportion of them, so a flat-rate sales tax will tend to be regressive. It is therefore common to exempt food, utilities and other necessities from sales taxes, since poor people spend a higher proportion of their incomes on these commodities, so such exemptions would make the tax more progressive. The classic way of cheating on sales tax is to ask a merchant or service provider for a cash discount. The merchant pockets the cash and writes off the merchandise to shrinkage and the state fails to get the tax.

Edited by mk86

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uh they only avoid it until they get caught- relative just got 10k fin for tax evasion for paying my bro under the table- my bro got a 2k fine and has to pay all his taxes ...

 

 

FIRST OF ALL- why would you be scared of what it would show unless you have something to hid- your ccard statements would show what it is therefore would end the discussion right there-

 

second of all- irs does not get detailed reports of your accounts- thats illegal- only way they can "check up on you" is if the bank suspects you of illegal activty ie money laundering etc and they tip them off-

 

I work at a bank- ABN AMRO owns us and if they were checking accounts do you think I would put my money there- hell no. There are laws about invasion of privacy etc and while they have become more lax due to terrorism etc there are still some laws that exist.

 

 

bottom line- you can't believe everything you hear- and if you know your depositing a legitimate source of cash that be substantiated then what do you care what "they think".....

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

WHAT BUSINESS REASON DOES THE

IRS HAVE FOR LOOKING AT YOUR

CHECKING/SAVINGS ACCOUNTS????

 

 

Because I heard that the IRS always checks your exisiting checking account for the total amount of money going in and out.

 

Its the part of the reason why people that get paid in CASH instead of checks can avoid paying a hefty amount of tax. These are people that work in MOM&POP grocery stores.

THAT IS NEWS TO ME!!!

 

 

Yes, and when the IRS compares your declared TOTAL ANNUAL INCOME and the total ammount you spend and earn by examining your checking account/credit report, if there is a conflict (total spending and earning EXCEEDS your total declared annual income), you'll get in trouble.

 

Or at least thats what I heard.

 

That is why im worried that deposting huge sums of balance transfer checks might set off a RED ALARM for income tax deception, when it is actually not actually an income, but a loan. I am worried that they might think my cash loan from 0%BALANCE TRANSFER checks is part of my ACTUAL income!

 

Where did you hear this from?

 

From friends that get paid in CASH. They seem to know a lot about these things and the LOOPHOLES.

 

People that get paid in cash can litterally avoid paying taxes since there is no record. BUT IF YOU GET PAID IN CHECKS, LIKE WORKING AT WALMART, YOU CANNOT HIDE THAT RECORD SINCE YOU HAVE TO DEPOSIT IT IN YOUR CHECKING ACCOUNT. AND THAT CHECK YOU DEPOSIT WILL COUNT AS INCOME IN THE EYES OF THE IRS.

 

That is why i ask this balancetransfer check question.

 

A BT check is not CASH.

Large cash deposits can come under the banks and IRS scrutiny.

 

There are people here who have put significantly more than $20K in balance transfers checks through last year heck in some cases maybe last month. :lol:

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If I do a balance transfer totaling over 20K from a CC, and put all of it into my checking account, would the IRS know that this check is from a BALANCETRANSFER check or would they suspect it as income?

 

I don't want to look like im evading tax by not reporting my full income (but it would seem like it if I deposit huge amounts of balancetransfer checks into my bankaccount).

WHAT BUSINESS REASON DOES THE

IRS HAVE FOR LOOKING AT YOUR

CHECKING/SAVINGS ACCOUNTS????

 

 

Because I heard that the IRS always checks your exisiting checking account for the total amount of money going in and out.

 

Its the part of the reason why people that get paid in CASH instead of checks can avoid paying a hefty amount of tax. These are people that work in MOM&POP grocery stores.

THAT IS NEWS TO ME!!!

 

 

Yes, and when the IRS compares your declared TOTAL ANNUAL INCOME and the total ammount you spend and earn by examining your checking account/credit report, if there is a conflict (total spending and earning EXCEEDS your total declared annual income), you'll get in trouble.

 

Or at least thats what I heard.

 

That is why im worried that deposting huge sums of balance transfer checks might set off a RED ALARM for income tax deception, when it is actually not actually an income, but a loan. I am worried that they might think my cash loan from 0%BALANCE TRANSFER checks is part of my ACTUAL income!

I HAVE RUN $300,000--$500,000 IN AND OUT OF MY CHECKING ACCOUNT IN A YEAR AND THE IRS THINKS THAT IS INCOME???

 

I DON'T THINK SO!!!!!!!!!!!!!!!!

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From friends that get paid in CASH. They seem to know a lot about these things and the LOOPHOLES.

 

People that get paid in cash can litterally avoid paying taxes since there is no record. BUT IF YOU GET PAID IN CHECKS, LIKE WORKING AT WALMART, YOU CANNOT HIDE THAT RECORD SINCE YOU HAVE TO DEPOSIT IT IN YOUR CHECKING ACCOUNT. AND THAT CHECK YOU DEPOSIT WILL COUNT AS INCOME IN THE EYES OF THE IRS.

 

That is why i ask this balancetransfer check question.

 

 

Um, more likely than not, the check thing is because the empoyer pays state and fed employee taxes and submits W2s to the IRS, not because the IRS is watching your bank account.

 

At least that seems more likely to me. :cry2:

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Wife and I were audited by the IRS several years ago, We had separate accounts in the same Credit Union ,

We would transfer our money from one account to the other to pay bills , All deposits from pay checks.

IRS agent ADDED up ALL our Deposits , in both accounts , subtracted our pay checks ,and considered the difference Cash that " We Had Overlooked and Forgot to Claim. No Criminal Charges , just the Fines and Interest . The Lawyers and Accountants that We Consulted with all said to pay it , it would have cost Us to much to fight it , and He would spend the rest of His sorry life Bugging us when we Won.

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Wife and I were audited by the IRS several years ago, We had separate accounts in the same Credit Union ,

We would transfer our money from one account to the other to pay bills , All deposits from pay checks.

IRS agent ADDED up ALL our Deposits , in both accounts , subtracted our pay checks ,and considered the difference Cash that " We Had Overlooked and Forgot to Claim. No Criminal Charges , just the Fines and Interest . The Lawyers and Accountants that We Consulted with all said to pay it , it would have cost Us to much to fight it , and He would spend the rest of His sorry life Bugging us when we Won.

Interesting was the amount over from balance transfer checks?

 

Certainly it might be prudent to document BT checks by using the statements so that it could survive an audit.

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Wife and I were audited by the IRS several years ago, We had separate accounts in the same Credit Union ,

We would transfer our money from one account to the other to pay bills , All deposits from pay checks.

IRS agent ADDED up ALL our Deposits , in both accounts , subtracted our pay checks ,and considered the difference Cash that " We Had Overlooked and Forgot to Claim. No Criminal Charges , just the Fines and Interest . The Lawyers and Accountants that We Consulted with all said to pay it , it would have cost Us to much to fight it , and He would spend the rest of His sorry life Bugging us when we Won.

Interesting was the amount over from balance transfer checks?

 

Certainly it might be prudent to document BT checks by using the statements so that it could survive an audit.

The MBNA BT's to my checking actually say ELECTRONIC DEPOSIT FROM MBNA "GEORGE" or somthing like that...

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I also state where each check deposit is FROM

 

Like "IF" I had a check from CITIBANK

 

DEPOSIT--CITIBANK BT CHECK #3689 $20,000.00

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Wife and I were audited by the IRS several years ago, We had separate accounts in the same Credit Union ,

We would transfer our money from one account to the other to pay bills , All deposits from pay checks.

IRS agent ADDED up ALL our Deposits , in both accounts , subtracted our pay checks ,and considered the difference Cash that " We Had Overlooked and Forgot to Claim. No Criminal Charges , just the Fines and Interest . The Lawyers and Accountants that We Consulted with all said to pay it , it would have cost Us to much to fight it , and He would spend the rest of His sorry life Bugging us when we Won.

 

That's almost exactly what I worried about. Thanks for sharing :grin:

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Typical behavior of the Progressive US Government sponsored social engineering system.

 

You don't really have a problem understanding what "no political posts" means, do you?

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Personally, I wouldn't worry about what the IRS thinks. You can easily show that it's not income so there's nothing to worry about. Red flags don't mean squat if you're in the right. :swoon:

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Typical behavior of the Progressive US Government sponsored social engineering system.

 

You don't really have a problem understanding what "no political posts" means, do you?

 

That wasn't political. That was an ECONOMIC post.

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Typical behavior of the Progressive US Government sponsored social engineering system.

 

You don't really have a problem understanding what "no political posts" means, do you?

 

That wasn't political. That was an ECONOMIC post.

 

I SAID WE DON'T ALLOW POLITICAL POSTS. I don't care what YOU call it, I said it was POLITICAL.

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You that are worrying about balance transfers to checking are worrying needlessly. The IRS isn't going to check anything much unless there is a red flag/s on your return. If it is an interest bearing checking, the bank will report to the IRS. If you overlook reporting that interest, it might possibly motivate the IRS to check out a red flag.

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Personally, I wouldn't worry about what the IRS thinks. You can easily show that it's not income so there's nothing to worry about. Red flags don't mean squat if you're in the right. :yahoo:

TROUBLE IS ONCE THEY HAVE YOU BENT OVER AND HAVE THEM SPREAD...

 

THEIR GONNA' LOOK TILL THEY FIND SOMETHING EVEN IF THEY HAVE TO INVENT IT!!!

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