Does IRS audit appears in tax records?

[deliquis]

At the beginning of this year 2021, I also paid $1200 credit card bill, in cash (currency), for my son, by personally going into the bank that issued the credit card to my son. The bank took the currency and my driver’s license. Bank gave me a receipt for that payment and returned back the driver’s license. Will this payment/transaction shows up anywhere in my IRS documents or in my son’s IRS documents? Unless that bank reports this cash payment matter to IRS, is there any way the IRS knows about this cash payment? Finally, the bank uses my driver's license details for what purpose?

 

[davew9128]

Don't forget about the Revenue Officers digging through your trash trying to find evidence of your spending...

 

[LdiJ]

At the beginning of this year 2021, I also paid $1200 credit card bill, in cash (currency), for my son, by personally going into the bank that issued the credit card to my son. The bank took the currency and my driver’s license. Bank gave me a receipt for that payment and returned back the driver’s license. Will this payment/transaction shows up anywhere in my IRS documents or in my son’s IRS documents? Unless that bank reports this cash payment matter to IRS, is there any way the IRS knows about this cash payment? Finally, the bank uses my driver's license details for what purpose?

No, that won't show up on anybody's record. The bank took your driver's license info because it was not your account. Had your son not known you were doing that and called the bank about unexpected transactions on his account, they would be able to explain the transactions to him.

 

[Taxing Matters]

Don't forget about the Revenue Officers digging through your trash trying to find evidence of your spending...

LOL, in the all the years I was a revenue officer, I never did that, and neither did any of the ROs I worked with. It simply would not have been worth the effort, even in the days when people did most transactions with checks and paper receipts rather than electronically.

 

[Taxing Matters]

Will this payment/transaction shows up anywhere in my IRS documents or in my son’s IRS documents?

Very unlikely, unless for some reason the bank decided to submit a suspicious activity report (SAR) for the transaction.

Unless that bank reports this cash payment matter to IRS, is there any way the IRS knows about this cash payment?

In theory there are some ways the IRS might learn of it. But they are pretty unlikely, Moreover, the IRS isn't going to care about one $1,200 cash transaction that amounts to a gift to your son unless it, along with all the other gifts the IRS can uncover, would be large enough to require the filing of a gift tax return.

Finally, the bank uses my driver's license details for what purpose?

It does that to meet its various reporting obligations to the US Treasury and other agencies. Banks have to comply with rules that include knowing their customers, reporting suspicious transactions, and reporting certain cash transactions, including series of structured transactions that are meant to evade reporting. So, for example, if you had gone into the bank over a period of several days and done cash transactions that in total were $10,000 or more, the bank would report those as potential structured transactions even though no single transaction met the reporting requirement. In short, to fulfill their reporting obligations banks need to know eith whom they are dealing.

You are over worrying about this. Provide honest responses to any debtor's exam and see what happens from there. Chances are they aren't going to be interested in pursuing those gifts to your son even if they do end up learning about them.

 

[deliquis]

Very many thanks!