My fifteen year old son is paid cash by his employer, who told him not to deposit more than $8,000 in cash to his account in one year because the IRS will notice. Please advise.
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This is the stuff of which urban legends and similar misinformation is made. How this bit of erroneous information started is a mystery. Anyhow, unless your son is getting paid a lot more than any 15-year old has a right to expect from any ordinary employer, he needn't be concerned about the bank reporting his deposits to the IRS. Banks report cash transactions exceeding $10,000 per business day.
There could be another explanation for what your son told you. Reading between the lines, is it possible that your son is working off the books and the employer is trying to ensure that it won't be detected and reported? Give your son the benefit of the doubt, and assume that he will report his income to the IRS at the end of the year whether or not he receives a W-2 or 1099 from his employer, if he earns enough to owe taxes.
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This is the stuff of which urban legends and similar misinformation is made. How this bit of erroneous information started is a mystery. Anyhow, unless your son is getting paid a lot more than any 15-year old has a right to expect from any ordinary employer, he needn't be concerned about the bank reporting his deposits to the IRS. Banks report cash transactions exceeding $10,000 per business day.