BAIL AND THE IRSFeb 3, 2002 Write an essay on this topic.
The Bottom Line PAY ALL THE BAIL, GET ALL THE MONEY BACK.......AND THE IRS AUDITS YOU!
Because of a recent arrest of a relative, I have discovered more about the IRS and I want to share this with all to whom it may EVER apply! First, are you aware that if you are arrested and the bail is, say, $30,000, you have these choices: You may get a bail bondsman and pay the ten percent, $3000 to get out of jail fast. (This is assuming bail is allowed). Are you aware that NONE of that money is refundable to you? On the other hand, you may just happen to have $30,000 cash available to you, and pay the entire bail amount. If you pay the entire amount, you will be refunded this money when you go through your paces with the court, and do not skip. But, there is a tax problem here!
If you pay the full amount of money that is your bail, the IRS steps in and checks to see how you had that money! I have found most people do not know this, and feel it is important to share this information. One man had a bail of $200,000., recently. He came up with the cash to pay it all, in order to get it all back. The IRS audited him, and found that there was no way this man SHOULD have been able to come up with this amount of 'free' cash. The man is now, in deep trouble with the IRS!
Since having to pay for my relative's ten percent of his bail, I have only just realized that none of that money is refundable to me. So, I give only the advice of knowing what you are in for, should you decide to bail yourself out of trouble, or a relative, or a friend. Remember: Pay the full amount, and the IRS will audit you and may hound you. Pay the ten percent, and lose it all. Needless to say, the IRS won't be checking me out! But, I do believe it is an important tax issue that all should be well aware of, in case of such an emergency. If you cannot show, on paper, without messing up past tax forms you have signed, realize the IRS will be checking you out with a quick to start and long to finish AUDIT. Be careful. Make a good choice.
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