Can cash payments for school tuition and Amex credit card trigger an IRS audit? Tuition: $4,000/semester
Credit card: $1200/month
Asked on 11/28/12, 7:24 pm
1 Answer from Attorneys
Walter LeVine
Walter D. LeVine, Esq.
Yes. The issue is possible unreported income. How is one able to pay large amounts in cash if that person does not report sufficient income to justify the ability to pay. IRS can always raise this issue. This is a response to an Internet question and the reply is for informational purposes only and is not intended to be legal advice or as creating an attorney-client relationship.
Answered on 11/29/12, 8:55 am
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