Was looking to bump this thread, although it's not the exact same scenario, as there is no cash involved.
John Smith is the president only authorized signer on ABC Express LLC. The business does have its own tax ID. Recently, we've noticed that there are checks drawn on the account of ABC Express LLC made payable to John Smith that are signed over to his wife, Jane Smith, and then deposited into Jane's personal account that John Smith is not on in any capacity. These checks are on approximately a monthly basis, and total over $50k for each of the past 2 years. Despite this, there is inconsistency enough (amounts differ drastically at times, multiple deposits are made some months but not others, etc) to evidence that this is not John Smith's monthly/weekly/bi-weekly payroll. When asked, the customer stated that these funds were being deposited in order to cover household expenses, although I'm not sure what size house requires $50k annually.
We've also identified that ABC Express LLC was dissolved via the Secretary of State website, right around the time of these items being deposited into Jane Smith's account.
Thoughts on this? To me, we have the appearance of tax evasion via the president attempting to not claim additional income though the deposit into an account that he is not listed on; although from a paper trail standpoint he really wouldn't be getting away with it as any lookback at said accounts would show the whole process.
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