How Govnt Tracks You

**greatestone** · 09-19-2008, 02:57 AM

I am writing a little blurb on and researching how the govnt tracks you to see what exactly is your income flow and how they catch tax evaders, etc.... I know the obvious parts in if you are depositing sums of money into your bank account, thats obvious... but I have some other options and I wonder which do they know about and which do they not?

- Paying off credit cards, ie, you use your credit card a lot, so you pay it off, but with money orders or certified checks... is that considered income/cash flow?

- Cashing check in your name, ie, you go to any bank, or the check issuing bank given to you by someone, and you cash it. Does the bank not care that it was paid to you? So if someone gave me a 100k check, i go to the bank and cash it, that cash flow line is off the grid? well maybe not 100k, but like 2k lets say....

Any other info about this process is appreciated. Thanks.

**creditcardwarehouseonline** · 09-30-2008, 12:04 PM

The only way they track you is if you cash a check or deposit more than 10000. Or if you go purchase something and the cost is over 10000. They do not track you for smaller purchases. If you purchase or deposit 10000 or more then the bank or place you purchase from, i.e. car dealership, has to report you to the IRS. They dont track every day deposits or spending. However if they audit you they can get your banking records.

**greatestone** · 09-30-2008, 01:51 PM

Thanks.... do u know if auditing is truly done randomly or do they have red flags for certain income groups? I know my uncle got caught and his income was pretty much near an average american so... and he dealt with an all cash retail business.

**creditcardwarehouseonline** · 09-30-2008, 04:42 PM

That is probably why they audited him. All cash businesses is suspect. Also dont write off too many things. This could red flag you. Chances are, if you are making an average amount of money they will not come after you. And as long as you file, the worst thing that can happen is you have to pay them back taxes.

**Magic69** · 10-01-2008, 06:55 PM

Originally Posted by greatestone

Thanks.... do u know if auditing is truly done randomly or do they have red flags for certain income groups? I know my uncle got caught and his income was pretty much near an average american so... and he dealt with an all cash retail business.

Any decent tax accountant/cpa will be able to tell you what some red flags are. For example, mine told me that submitting a return that had a lot of round numbers on deductions was a red flag (i.e. multiples of 10... 70, 460, etc)

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