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Prepping my bank account. Avoiding audit

Discussion in 'Business & Tax Advice' started by masterfunkd, Jun 11, 2009.

  1. masterfunkd

    masterfunkd Junior Member

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    So I'm looking at a good chunk of change coming to me in the near future. I'm running a few JVs and have some really profitable methods. Now until I get an LLC setup I was planning on depositing all the money into my personal checking account before reinvesting 50% in CD's (Varying periods but 3 months to a year in general). I'm looking at over $10k a week easily (minimum conservative estimate) if things work out ok.

    Now the bank account I'd be using would be a normal checking account without much money in it currently (in the $x,xxx range). I've never used this account for business and it's always been a personal luxury account (dates, dinners, etc.) 50% would be withdrawn biweekly to be invested in CD's.

    Now what I'm wondering, is how to I prepare my bank for this and avoid getting audited by the IRS. I mean, I'm still in college and while I've done good volume before, I've always used variations of generally accepted accounting principles to bury any gains I've made. That won't be possible for this amount of money.

    So what do I do? Just deal with losing a bunch to taxes and then even more to pay tuition? Of course that's after my bank starts to think I'm dealing drugs and the IRS starts asking questions. (Also I doubt I'll be able to hide this amount of money from my parents so how do I explain it without being upfront about blackhatting? Especially since they like to see the sites I make whenever they make money.)
     
  2. Realign02

    Realign02 Regular Member

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    To be honest man unless you have an offshore account I don't think there is away around the IRS. They keep track of EVERYTHING you make. If you got paid from a CPA company they know about that too.

    It's not worth it to try and find away around it bro. You're playing with uncle Sam and will get burned if you try. This is speaking from being in the military.
     
  3. masterfunkd

    masterfunkd Junior Member

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    oh no i'm not trying to avoid paying taxes. I'm just trying to avoid a full audit and having my bank start asking a bunch of questions.
     
  4. innocent

    innocent Junior Member

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    Your bank isn't going to ask questions - just isn't going to happen. The IRS however, well, if you are making $500,000 per year, as a sole proprietor, you have a good chance of getting audited.

    The only advice I could offer would be to get a really, really good CPA and pay him or her to do your taxes, quarterly tax reporting and payments, etc. When you are making that kind of money hire professionals so you don't have to worry about audits.

    Good luck to you and congrats! I hope the $10K per week turns out to be a reality.
     
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  5. cyrix

    cyrix Junior Member

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    send payment details from the ad networks that are paying you to your bank so they know where the money is coming from. Just let them know ahead of time and provide paperwork and you should be ok.
     
  6. churiel

    churiel Newbie

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    That sounds like good advice.