What does the IRS demand from you in an audit?

I started streaming on an app in December and nonchalantly put a Cashapp in the description. Surprisingly a bunch of people sent in little amounts here and there and by April I had amassed $16k. Probably like 800 transactions total.

Now I'm sitting in paranoid hell that I'm gonna get audited and required to prove every dollar from every donor. Because it was a bunch of small transactions instead of a few large ones?... Because it's an unusual "business" and level of profit that their A.I. detection isn't familiar with? I dunno. I've never known of someone who was audited, but I've heard of giant packets and binders needing to be sent in when someone is. How "beyond a reasonable doubt" do these buttholes require from you? To find every little amount sent in and prove every sender was a real person and not a bot? Screenshots of my stream (which I dont even have)? One guy I asked who's done international import/export business for years said "It's simple just admit to nothing!"... But wont the IRS just determine you're guilty if you fail to CONVINCE them? Guilty before presumed innocent?

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  1. 1 month ago
    Anonymous

    guilty for what? you received 16k, you report 16k income

    • 1 month ago
      Anonymous

      >guilty for what?
      Ahh damn, I forgot to write that I paid Self-employment taxes on this income back in April, and then I shut down the streaming immediately because I became paranoid.

      And I mean shit, is it a crime for payments/money sent to you to not be traceable to the sender? To not be holding on to every receipt? Is it a crime to not be a registered structured business while accepting money from others? If something looks suspicious like money laundering to them do they jump to automatically assume it's money laundering?

      • 1 month ago
        Anonymous

        >Is it illegal for it not to be traceable
        Lol no dude just report it on your schedule c

  2. 1 month ago
    Anonymous

    Just call them up and explain your position. They're surprisingly reasonable (once they realize you're just confused or you made normal errors) and they've heard it all before.

    • 1 month ago
      Anonymous

      >um hello IRS, I tried to launder my money but now that I look at my coverstory it doesn't seem believable. Can you help me with that?

      • 1 month ago
        Anonymous

        I said normal errors, not Sinaloa cartel shit you sperg.

      • 1 month ago
        Anonymous

        16k is nowhere near money laundering levels, thats pretty reasonable for someone to make that from a side gig in 6 months.

        • 1 month ago
          Anonymous

          Obviously I don't know their inner workings, but I just feel like the actual number value is not all they look at. Sure on the outset 16k is nothing, but what if their AI has highly targeted and specific red flags it looks for, like me never having filed self employment before and all of the sudden making 16k from the beginning of this year, or converting most of it to bitcoin and sending it out, or having over 800 transactions in my Cashapp, or moving money from Cashapp into my bank account and then sending it right out of my bank to a foreign account

          Do they aggregate all these little markers to determine "Oh that guy is definitely making his money in some abnormal fashion, we're investigating him til every leaf is turned over"

    • 1 month ago
      Anonymous

      >um hello IRS, I tried to launder my money but now that I look at my coverstory it doesn't seem believable. Can you help me with that?

      I just dont know the level to which they can accuse you of evasion just off their "suspicions" with no solid proof, demand you submit documents to disprove it beyond a reasonable doubt, and if they're not satisfied they go ahead and levy big penalties or crimes on you. I mean shit, what would hypothetically happens if you just don't cooperate with their investigation at all? You get automatically charged and then need to get a lawyer?

      I should mention that I AM worried about whether I triggered some agency's (who knows who's) anti-money laundering red flags. Because I converted 13k of the $16k to Bitcoin in the Cashapp app and sent it to my crypto wallet, and then was promptly banned from Cashapp permanently (anytime I enter my SSN to make a new one it says "This info is associated with suspicious activity"). Then I sent the remaining 3k to my bank account and sent it to a friend in Malaysia to convert it to USDT and send it to my wallet, and my bank CALLED me afterwards and asked "are you sure that was you that sent a large sum to Malaysia?". So it's stuff like this that made me feel like I'm on the edge of FinCen looking into me or something

      • 1 month ago
        Anonymous

        If you've done nothing wrong intentionally, you really have nothing to worry about. Bitcoin and Cashapp are both fully traceable by glowies and they will be able to see who sent you what if they care enough to look into it.

        If you have done something wrong intentionally then you are fricked. Imagine committing a felony for $16,000 lmao gg.

      • 1 month ago
        Anonymous

        I would cooperate. Pissing off the IRS is liking piss God off, just without the compassion. Not even Old Testament God can compare with what they will do if they think you are trying to dick with them.

  3. 1 month ago
    Anonymous

    Virtually zero chance you get audited over 16k that you just forgot to report. The IRS is really easy to work with though. They will ask you for proof of all of your income due to the reason you got audited.

    Biggest rule of thumb with the IRS is don't be moronic by being cute or pretending to be stupid. Just pay the tax and fee and keep it moving. They will start fining the shit out of you if you start being moronic or trying to hide shit.

    If the auditor is an absolute c**t, they will ask for access to your banks and will look at every single transaction you've made. At this point, just let them do their thing and pay whatever they say you owe them. The goal with an audit is to get it over with as fast as possible. It only gets more expensive if you draw it out. No one goes to jail unless they're committing fraud

    • 1 month ago
      Anonymous

      What if you put an XMR donation link and get like a $100k donation? Would you still get v& by the IRS since you can't really prove where that income came from and they won't accept your explanation that it was donated?

  4. 1 month ago
    Anonymous

    In the case of an audit, can't the OP just hire a CPA to handle it? I would imagine hiring a CPA to handle an audit would reduce the amount of headaches and stress considerably.

  5. 1 month ago
    Anonymous

    They don't tend to audit people who make less than $80k. They aim for the $100k-$1m people, it's a sweet spot where they have a lot of tax evasion but not the resources to hire a legal team to fight back.

    • 1 month ago
      Anonymous

      I dont know how you came upon it but that's some great advice there XD
      I just wonder whats stopping them from going after the small fishes who make $20k since they can just turn them into their debt slaves for life. Seems like that would be a solid goal

      • 1 month ago
        Anonymous

        It costs more money to audit small fishes than they get back, and at that point they'd be going after waitresses (because they don't report their tips) instead of twitch streamers.

  6. 1 month ago
    Anonymous

    besides, you might want to check if I'm wrong but I think they pushed back the $600 limit to next year, the IRS doesn't even know you exist if you aren't a W-2 employee and made less than $20k

    • 1 month ago
      Anonymous

      Supposedly it's supposed to be $5000 for 2024 but they still wont confirm it, so you're essentially left to guess about whether they're gonna go ahead and do it this year or not. Fricked if you guess wrong

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