Re: Ed Miller\'s Tax Article
Ed Miller's article mentions raised eyebrows from the IRS over a young person having $200K in their bank account with nearly no reported income.
Here's what I'm curious about...
I completely understand why the IRS would be curious about that kind of bank account balance (or even a quarter that much) when nearly no income is reported. What I am curious about is how the IRS comes across that information to begin with. As far as I know, they don't have constant visibility into banking accounts. Yes, they can subpoena records in order to get that visibility, but then the question is what would prompt that subpoena in the first place.
This is not at all my personal situation, let me make this clear. However, let's say that I do have $200K in a bank account. As long as I'm not doing anything that is widely visible with that money, such as buying a car or house with cash, how is the IRS going to know that I have that much money in the bank?
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