What will happen with the IRS if I have a lot of money in the bank but I'm not on payroll?

Any single transaction over 10 grand is automatically reported to the IRS. However, even if you avoid transactions over 10 grand, IRS computer programs are designed to spot and flag cases like yours, i.e. a lot of money with no taxes. Best bet is to just report it and pay taxes because if you don't it can end up costing you a lot in fines and legal fees.

You arent breaking the law. As long as you file a return you are going to be alright. You need to start filing quarterly if you want to do this right. I would set up an account where you put everything in it and then transfer 30% to a savings account that way when taxes come do its there. You have expenses so you can right those off against the earnings. I say talk to an accountant. Pay for a consultation with a business tax guy/girl and get their opinion. I say let them handle it so you dont have to worry about it. Its worth it not to have to worry about it. You may have to pay them a few hundred bucks a month but it keeps you from worrying and out of trouble.

if your being paid under the table, the IRS doesn't know you have a job. they won't know your putting money in a bank as long as you keep the deposits small. like under 3 thousands. any time you deposit

a large sum of money, the IRS can find out about it. you will make interest on the money you have in the bank and depending on how much you make the bank will send you a interest income form to use when you file taxes. if they find out you have a large bank account, eventually they will get around to wanting to know where the money came from.

you would do well to get busy and prepare your taxes for this self employment

banks are required to report transactions of $10K to IRS

if you opened an account with this amount of money, IRS has already been notified

you don't have to be on a payroll to report income

Due to the Patriot act, Your bank will report to the Gov. your balances if you claim through the bank you do not have an income. When you set up a bank acct. the bank will ask you how much money you make. If you told them, zero they are going to ask questions. If you plan on working under the table, I suggest using a check cashing place and not use a bank.

You were required to provide your Social Security Number to the bank. Therefore, the IRS certainly has the means to see what your deposit history and balance is, and of course whether you reported that income or not.

You have an obligation to report all income whether it is from legal or illegal activities. It does not matter if you receive a 1099 or not or a W2 or not.

If you do not report all of your income it is call Tax Evasion

You know of course that you're breaking the law.

That said, the bank might or might not report you. But there are lots of other ways the IRS can get on your trail.

You should get Forms 1099 reporting what people have paid you. IRS gets a copy.

Nothing, so long as you report all your income as you are legally obligated to.

You are committing tax evasion. You can be sent to FEDERAL PRISON.