Columbus, OH asked in Banking for Ohio

Q: If someone makes a large purchase of over 10k and the irs starts investigations but cannot find anything, what happens?

They cant find ANY details on where the cash came from. The person in question denys to answer ANY questions.

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1 Lawyer Answer
Ana Maria Del Valle-Aguilera
Ana Maria Del Valle-Aguilera
  • Business Law Lawyer
  • Miami, FL

A: The IRS can issue an IRS Summons to any banking institution involved in the transaction (the bank that received the funds, for example), requesting copies of bank statements, wire transfers sent or received, ACH transactions, etc., and trace where the money came from. Unless it was a cash purchase and the purchaser held no bank accounts, transfer of funds between banks is traceable. The IRS can also issue IRS Summons to other entities as part of an investigation. Other government agencies could also get involved and conduct their own investigation. It is always better to cooperate with the IRS or any government agency. The purchaser should seek legal advice and representation if he/she has already been uncooperative.

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