Debtor is potentially hiding money

[rodrigus3]

What is the name of your state? Florida
Hello everyone!

I won a case recently. Debtor withdrew lot of cash after I filed the lawsuit, and, after losing it, he testified that he spent that cash on food and alcohol (absolutely no receipts!). Few months after he withdrew that cash, his wife opened a bank account on her name and deposited several thousand cash in it. She testified it was her money she earned in cash/currency (no checks, no deposits, and no bank accounts: she said she never used a bank) until 8 years ago by selling bags and embroidery items for hard cash. She produced her tax returns for her income for those years. Thsoe records prove that she made more than the money she now deposited in banks. I subpoenaed local banks but they have no bank records on her name at any time. How can I proceed? I believe she is using her past business tax returns as a cover-up for the cash (from her husband) she deposited in her personal bank account.

 

[adjusterjack]

What a coincidence. We just went down that rabbit hole with a judgment creditor from Florida a month ago.

Read the thread. It probably covers all the points that you are likely to come up with.

Head of family debtor's savings can be attached? | Forum.FreeAdvice.com

And here's one from Texas also from last month.

Debtor paid for the air tickets to her husband | Forum.FreeAdvice.com

You may have to eventually accept that your judgment is likely uncollectible. Bitter pill to swallow. I know. I've been there with uncollectible judgments against former tenants.

If a debtor wants to hide money, he'll figure out a way to do it so you can't get to it, no matter what the "law" says.

 

[rodrigus3]

Greatly thankful. Those links are also highly helpful (I found few more links also in this forum which seem useful).

Although debtor's wife has her tax filing documents to support her income, does the court trust that debtor’s wife, 8 years ago, accumulated her business income by selling bags and embroidery items for hard cash, and saved that cash all these years and now deposited it after lawsuit filed on her husband?

Whether IRS, if I make a complaint, can do anything or better for me to wait until IRS come after her because she deposited a lot of cash in banks?

I already spent a lot on this case paying my attorneys.

 

[adjusterjack]

Although debtor's wife has her tax filing documents to support her income, does the court trust that debtor’s wife, 8 years ago, accumulated her business income by selling bags and embroidery items for hard cash, and saved that cash all these years and now deposited it after lawsuit filed on her husband?

The court cares only about what you can prove, with EVIDENCE, not sayso, speculation, belief or assumption.

Whether IRS, if I make a complaint, can do anything or better for me to wait until IRS come after her because she deposited a lot of cash in banks?

Complaint about what? Will you accuse her of tax fraud? And subject yourself to a possible defamation lawsuit? You already have her tax record showing sufficient income to cover her deposits.

I already spent a lot on this case paying my attorneys.

Pyrrhic victory.

How much is your judgment for?

 

[rodrigus3]

Judgment amount is close to 20,000. I will not accuse her of tax fraud but was asking WHAT IF I inform IRS about potential tax fraud. She deposited close to 30,000 in her account, and its looks strange keeping income for 8 years as hard cash (she reported 50,000 income 8 years back in tax returns) and deposited 30,000 after her husband withdrew 35,000 few months earlier from his account.

 

[adjusterjack]

I will not accuse her of tax fraud but was asking WHAT IF I inform IRS about potential tax fraud.

Same thing. It's an accusation of tax fraud no matter how you slice it. You're angry and want to bring the might of the federal government down on her for something her husband did. That's perfectly understandable so no need to deny it.

She deposited close to 30,000 in her account, and its looks strange keeping income for 8 years as hard cash (she reported 50,000 income 8 years back in tax returns)

Might look strange but all the IRS cares about is that she paid taxes on money she earned.

deposited 30,000 after her husband withdrew 35,000 few months earlier from his account.

That might or might not be a fraudulent conversion.

Statutes & Constitution :View Statutes : Online Sunshine (state.fl.us)

If you can prove it, your court might help you get the money.

No, I have no idea what it takes to convince the judge. Your lawyer should address that for you.

 

[rodrigus3]

Might look strange but all the IRS cares about is that she paid taxes on money she earned.

she earned money 8 years back by collecting hard cash only from customers, no bank accounts, kept that cash for 8 years, of course paid tax 8 years back. if IRS contacts her, is it possible for her -or, in general for any one- that the money she deposited now is the same money she earned as income from that 8 years back , i.e., IRS buy that story?

If you can prove it, your court might help you get the money.

Your lawyer should address that for you.

I cannot prove in any way that the cash she deposited is the same that husband withdrew - they both deny that. I cannot afford any more lawyer, sorry.

 

[adjusterjack]

I'm sorry, too. I have nothing else to offer but sympathy. I know what it feels like to give up on uncollectible judgments. Mine ran into many thousands 30 years ago. Close to equivalent of yours in today's dollars.

 

[Taxing Matters]

Whether IRS, if I make a complaint,

Exactly what would be the nature of the complaint and what do you have to back it up?

I will not accuse her of tax fraud but was asking WHAT IF I inform IRS about potential tax fraud.

And what is your evidence of tax fraud? Simply that she held on to the cash? That won't do it. You need to provide information to support that she had taxable income in a particular year (or years) that she deliberately hid from the IRS. The more specific the information provided the better. As a former officer for the IRS I reviewed a lot of complaints about possible tax evasion, but most were simply to vague to be of much use.

 

[rodrigus3]

Appreciated, Adjusterjack.

Taxing matters:-- In your opinion as former officer for IRS, if a person who has no income for last 8 years, suddenly deposit around 30,000 hard cash (currency) in her bank account and claims that it is form her income earned (earned in hard cash only, no bank transactions) 8 years back (of course she filed taxes for 50,000 income 8 years ago: tax documents prove that), and there is no proof/evidence to contradict her claim, then IRS will buy that story if at all IRS starts an investigation on that 30,000 about tax fraud?

 

[Zigner]

there is no proof/evidence to contradict her claim...

Why should they have a problem with something that has no proof or evidence to contradict it?

 

[LdiJ]

Why should they have a problem with something that has no proof or evidence to contradict it?

And, if as the OP believes, it is money transferred from one spouse to another, then it wouldn't be a taxable event anyway. The IRS would have no interest in that at all.

Quite frankly, the odds of the IRS having any interest at all are slim to none.

 

[rodrigus3]

She testified that this money she deposited is not from her husband.

If IRS investiages, if I am correct, the accused (she) should prove that the money she deposited is not from her non-taxed (non-reported) income: she should prove that it is from her taxed income from 8 years back as she testified in my case: how can she prove that (she has no bank records, etc for that money earned 8 years ago)?

 

[adjusterjack]

You're reaching for "what ifs" that aren't going to happen.

But go ahead and call the IRS. See how that goes.

 

[zddoodah]

Whether the cash is or isn't from the debtor's wife's income isn't something over which the IRS has jurisdiction. Even if your speculation that the cash came from her husband is correct, it's none of the IRS's business.

If you're looking to levy on the money in the wife's account, you'll need to convince a court order that the money came from your debtor without consideration. If your only evidence is temporal coincidence, I think there's little chance of success.