How does the IRS find unreported cash transactions

People that don't deal a lot in cash, they generally pull money out of their ATM and they use it for miscellaneous items. That doesn't amount to much. The problem you're running into is when people hoard cash or they're paying a lot of their expenses or business expenses in cash, such as their workers in cash. That creates a real problem because they're avoiding payroll taxes by doing it that way. Everybody that deals in cash thinks that they're the only ones that ever deal with cash. They think that since they're dealing with cash, the IRS will never catch them. That's actually not true. The IRS will be able to do an analysis of the sources and uses of cash analysis to determine how much did they bring in in cash, how much did they pay out in cash and if there's excess cash left over at the end of the year, based on their analysis, they have under reported income.

[GhostyMist]

How did we evolve as a species to a point where not reporting money is a crime?

[tenzackyogi]

Never deal with Bank/Cash app/ PayPal/Venmo/Zelle app.
ONLY HARD CASH..

[scottiequickel]

Trade or business remuneration - functions of a public office

[mitch]

That is completely absurd. Finding out If an employer paid an employee in cash would require a warrant for video footage or something. There's definitely no way to tell what you spent your cash on. If you get charged by the IRS based on the lack of money you have it would be one of the most corrupt things I've ever heard.You can give away money to anybody.

[Jasonthehammer]

Here’s is what I don’t get- both my wife and I work- we have two kids- we both put 0 exemptions. The money has been calculated and pulled bi-weekly- and I put extra into the taxes so I’m not hit with a huge bill. But I still get hit with a huge bill no matter what! What doesn’t the IRS have it automated to take the correct amount??

[themoneyman]

When you say hoarding cash how much are you talking exactly $10, 000 $50, 000 or more or less??

[littlelarry]

not fair for a business to not report cash

[AvinashSingh-vjrk]

Happy new year 2024 and can you send your email ID please