Thru the company I work with we get a discount on gift cards at a home improvement store. My sister is looking to buy a kitchen thru them. I want to buy the gift cards for her, but they will be around $40,000. There is no issue with them paying me, but will it raise a red flag to the irs to have that much money charged on my credit cards, when I do not make that amount yearly after taxes?
2012-07-07T22:10:21Z
Instead of them transferring me the money, so it doesnt look like I received more than 10k from them. They are going to pay it directly to my credit card company.
2012-07-07T22:10:22Z
Instead of them transferring me the money, so it doesnt look like I received more than 10k from them. They are going to pay it directly to my credit card company.
2012-07-08T14:06:17Z
To the person with the discount. Its actually a discount that we are suppose to use for friends families gifts etc. They are suppose to be gift cards purchased for others, more than even our own use. That is not an issue. It actually looks good to purchase that high of a volumn with my company.
Russ B2012-07-07T23:36:03Z
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More than likely yes it will.
It is very untrue that the IRS doesn't compare what you spend to what you earn. They even compare what you own to the amount of your income.
And with the new computer system they have, they have a lot more access to information.
I don't know where you are located...but there are several states that monitor credit card charges to ensure they are collecting the "USE TAX" for out of state purchases.
There are so many ways for this to bite you, I would think twice about doing it.
Someone mentioned that you can negotiate the price for large purchases...did you know that contractors get a discount also...you can negotiate with them too.
Well since you do feel that you really did have to ask for some information from this website about possible red flags to the IRS apparenty you may have heard about the SAR reports for certain actions that some taxpayers do with their financial transaction so you really should tread very lightly and be very careful and make you own decision about the way that you will end up doing this at this time in your life. Suspicious Activity Report GOOD LUCK. Hope that you find the above enclosed information useful. 07/08/2012
Your company will. The discount is for you and your immediate family (meaning the people that live with you), not your sister and her household. You are not buying a gift, but acting as an intermediary to get her a discount. Eg, she gives you $40,000 and you buy $47,000 worth of gift cards.
Many firms would consider this theft and fire you. In the very least they should be adding the $7000 to your paycheck.