What is the name of your state? Nevada
My husband gifted me 35K currency during 2014. Now I wish to deposit 30K of that in my personal bank account to use for my living as my relations with my husband are not good; he was taking care of all my financial needs all these years but no longer. I have no income on my own all these years and was taking care of our children and home.
I learned that IRS may investigate for bank cash deposits exceeding 10K. My husband, although, not in good terms with me, was kind enough and give me a notarized letter a week ago confirming that 35K cash gift he gave in 2014. He said he has no bank statements for that cash withdrawal in 2014 (the bank keeps for max 6 years). He has been reporting around 70K income every year for many years including 2014.
(A). Whether this notarized affidavit of my husband will protect me if IRS investigates my 30K cash deposit in bank?
(B). Whether the IRS may go after my husband also, for the source of that 25K in 2014, once IRS saw that notarized affidavit (of my husband) from me? If so, whether the copies of his IRS tax returns (70K per year income) will protect him from IRS about that 35K cash he gifted me in 2014 (I am concerned of my husband who generously gave this notarized letter, although we both are not in good relation otherwise. I have moral obligation to do not push him into fire hence I am concerned of him).
I saw this forum is providing invaluable suggestions. Sincerely hope I will get advice on my specific situation.
I worked in the government sector as am assessor for years. State, though. There are statutes that must be followed but beyond that, the person handed your case can either say "fine whatever" or want to be more of a stickler.
Just make sure you are not breaking any laws. You can deposit as much as you want. Just do not lie to the bank or IRS when asked how it came to be. If you think you can legally do something different to avoid a hassle then I would speak with an attorney. But as a person who worked with taxes how much I wanted to dig beyond the statute depended on whether I felt it was fishy and my case load. If it hit me during the busy season and it met the statute requirements I let it go. I had bigger fish to fry. We were all like that.
Good luck. And it is OK to be paranoid. I get paranoid about regulations I am ignorant about because Google is actually terrible when it comes to explaining law to citizens, tax laws are like a circular nightmare. I would rather you be paranoid than not. Which was abother tool I used to decide how deep I wanted to investigate a submission. If the person called and I knew it checked out but could tell they were paranoid about wanting to be sure, or seemed worried about nothing, I let it go. The ones calling and cussing me out, I went over their returns with a fine toothed comb.
You can actually talk to an IRS agent. Stay off the IRS website and quit trying to figure it out using their documents, it will confuse you more. I have called and agents were always helpful.
