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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118286
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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If I owe IRS and the State of CA back taxes, how do I cash

Customer Question

If I owe IRS and the State of CA back taxes, how do I cash an insurance check that was issued to me because of loss from a house fire. The amount exceeds $50,000. Does the Banking entities have to report this transaction?
Submitted: 8 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 8 years ago.
The banks do have to report the transaction and the fact that the IRS would get their hands upon it because of the money owed. You do realize the IRS doesn't care about your necessities or anything else, they want their money and even if the money isn't taxable, the bank must report it because it is over $10,000 and the IRS will freeze it in the account and seize it.

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Customer: replied 8 years ago.
What If I go the bank that the ckeck was issued and cash the check. They can not seize
assests then. I do not have a bank account at present so I do not have that option for direct deposit. What if I have the check put into another persons or business name?
Expert:  Law Educator, Esq. replied 8 years ago.
They cannot cash a check that large and will not cash it. A check that large will have to be reported under the name it is issued and under that person's social security number. you are going where many before you have gone before. As soon as that report gets sent in on that check, the IRS will seize that amount from any account you put it into and the person whose account it goes into would then have to prove it is their money and not yours, and don't think about saying it is money you owe them because the IRS will still take if from them because they get to collect before anyone else.