Cashing checks from online poker winnings

[Praxis101]

Hey guys, I'm thinking this subject has been covered/partially covered in the past, so if anyone has a quick link to some info, that'll do just fine ;-)

This is a completely hypothetical situation.

Let's say I'm a solid poker player, winning somewhere in the neighborhoood of 2k-3k/month. I have no interest in making purchases of assets of any kind, or any kind of large purpose for arguement's sake.

I want to spend my money on friends/partying/making day to day life slightly more comfortable.

How feasable would it be to be able to safely cash out a check (safety in regards to tax reasons, if that is not clear) at the end of the month from my poker site, cash the check at my local bank, and keep the money stored at home (or a safety deposit box) for a couple of years?

How exactly do banks record/report these transactions?

Would there ever be any reasons for my scenario to be suspicious to the IRS: i.e. would I ever have a chance to be audited solely for this scenario?

No, I do not/am not planning on doing this, or anything like this. I'm hardly a winning player and have not made any cash outs. I'm curious by nature and have nothing to do today :-)

Thanks in advance!

[DavidNB]

Cashing the cheque would be the paper trail

[MNpoker]

[ QUOTE ]
Cashing the cheque would be the paper trail

[/ QUOTE ]

Could you elaborate? What is the trail?

If I get a check from someone who banks at US Bank.
I goto US Bank and cash the check.
They take a fingerprint (and DL) and cash the check.

USBank does not have my SS#. Where's the paper trail?

-----------------------------------------------
When I cash a check (for cash) at my bank. Not deposit, cash.

Do they keep a record of that transaction? It does not show up on a bank statement.

Can the bank tell where the checks you cashed came from (after they have gone through a clearing house?) I didn't think so.

[Jeffage]

If you cash a check at a bank, there is a record of the transaction and exactly how much cash was received. If you are ever audited and the IRS looks into your bank accounts, you will be [censored] with a capital F. Just pay your taxes.

Jeff

[Jeffage]

[ QUOTE ]
If I get a check from someone who banks at US Bank.
I goto US Bank and cash the check.
They take a fingerprint (and DL) and cash the check.

USBank does not have my SS#. Where's the paper trail?


[/ QUOTE ]

All checks go to a central clearing house. Thus, if the IRS (or another agency) thinks you're hiding income they can see if you've cashed any checks - all checks have a very easy paper trail if someone wants to follow it.

[ QUOTE ]
When I cash a check (for cash) at my bank. Not deposit, cash.

Do they keep a record of that transaction? It does not show up on a bank statement.


[/ QUOTE ]

Yes, they keep a record of that transaction. You have to show ID to cash a check and they check your account to make sure you have enough to cover it in case it bounces. Then it is noted that they cashed the check for you and how much it was for.


Jeff

[MNpoker]

[ QUOTE ]
All checks go to a central clearing house. Thus, if the IRS (or another agency) thinks you're hiding income they can see if you've cashed any checks - all checks have a very easy paper trail if someone wants to follow it.

[/ QUOTE ]

I still don't get this. Say my name is Jim Smith. I cash a check at USBank (where I do not have an account).

Where's the paper trail? They have my name but that's not enough to track it back to me.

[ QUOTE ]
When I cash a check (for cash) at my bank. Not deposit, cash.

Do they keep a record of that transaction? It does not show up on a bank statement.


[/ QUOTE ]

Yes, they keep a record of that transaction. You have to show ID to cash a check and they check your account to make sure you have enough to cover it in case it bounces. Then it is noted that they cashed the check for you and how much it was for.


Jeff

[/ QUOTE ]

Thanks, I did not know that.