Q: My uncle plans to gift me a $25,000 check, will this cause me problems with the IRS since I'm self-employed?

A: Receiving a $25,000 check as a gift from your uncle shouldn't inherently cause problems with the IRS, especially since you're self-employed. The IRS allows individuals to give a gift of up to $16,000 per recipient per year without needing to report the gift. Since the amount exceeds this threshold, your uncle would be responsible for reporting the gift on a gift tax return (Form 709), not you. As the recipient, you're not required to report the gift as income, and it should not affect your taxes.

Depositing the check into your bank account is straightforward. The bank may report large deposits to the IRS as a matter of policy, but this is to prevent money laundering and not about taxing gifts. As long as the gift is documented properly by your uncle if required, there shouldn't be an issue. Attempting to split the amount into smaller checks to avoid reporting thresholds, as you mentioned, is considered structuring and is indeed illegal.

If your uncle pays off bills directly to your creditors, it still counts as a gift to you. The method of delivery—whether cash, check, or direct payment on your behalf—doesn't change its classification as a gift. However, directly paying off a bill could be a practical approach if it helps you manage your finances more effectively. Regardless of the method chosen, it's wise to keep clear records of the transaction in the unlikely event the IRS inquires for clarification.