Posted on 08/23/2018 9:26:01 AM PDT by Cecily
It depends. As long as there is a paper trail (checks) there isn't a problem. It is when the transactions turn into cash that there is a potential problem and reporting requirement. And there aren't enough facts here.
Did the person passing out the cash know (or should they have known) that despite the separate entities shown on the face of the checks, they were fronts for a single person or entity? Did the same person present all of the checks so as to put someone on notice?
Look, you have a small business that grosses about 5 million a year. All that revenue comes in by the way of checks through the mail. Most is deposited in the bank except maybe 20% that is cashed locally at one of these check cashing stores. Most of that is used for daily operating expenses for the drivers and other pressing matters. What I am saying is these check cashing places can go through a lot of cash in a weeks time.
“There should be a dollar limit on how much can you can withdraw at any one time.”
Why? Do you need a nanny to care for you all the time? Diaper changes, perhaps?
It wouldn’t have to be that true to the actual perps, just the basic plan. Idiots come in all colors.
I’d run everything through the bank account and get cash out from that account.
Is the IRS ever going to catch on to the unreported cash? Probably not. Unless they go after the business for political reasons, or more likely, a disgruntled former employee blows the whistle.
Trying to beat the taxman out of a few dollars isn’t worth the sleep that I’d lose.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.