I have a personal account and a small business account. I recently sold my car and they paid by check from the same bank as I use. They wanted to take the car the next day, so I cashed the check at my bank. The teller wrote some numbers on the top of the check and gave me the cash. Problem was, he wrote the number for my business account on there now the IRS says this is business income and want 45% tax on my car sale money. How is this possible?
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Hard to see how it is. A tellers reference to your bank account numbers is often meant to act as an audit trail in the event the check was returned. You should be able to show the IRS who the owner of the car was, the business or you personally, and any liability should be based on that. If you made a deposit with those funds and that deposit was into a personal account, that further substantiates your position.
Banks are required to report cash transactions in excess of $10,000. Banks do not report to the IRS on a businesses income or differentiate what is a persons business income vs. personal income. Try to get to the source of the problem with the IRS as their beliefs may not be based solely on an account number reference on a check.
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Hard to see how it is. A tellers reference to your bank account numbers is often meant to act as an audit trail in the event the check was returned. You should be able to show the IRS who the owner of the car was, the business or you personally, and any liability should be based on that. If you made a deposit with those funds and that deposit was into a personal account, that further substantiates your position.