Other People's Money

Tax Notes, Vol. 125, No. 1, p. 137, October 5, 2009

Wake Forest Univ. Legal Studies Paper No. 1487530

6 Pages Posted: 15 Oct 2009 Last revised: 22 Mar 2010

Joel S. Newman

Wake Forest University - School of Law

Date Written: October 9, 2009

Abstract

In informal banking arrangements such as cundinas and tandas, the “banker” will have an unexplained fund of money, which the IRS will presume was acquired in a taxable way. Drug dealers and embezzlers often have the same problem. The informal bankers, with adequate records, can rebut the presumption. However, it is too bad that they have to be analogized to criminals in order to do so.

Suggested Citation

Newman, Joel S., Other People's Money (October 9, 2009). Tax Notes, Vol. 125, No. 1, p. 137, October 5, 2009; Wake Forest Univ. Legal Studies Paper No. 1487530. Available at SSRN: https://ssrn.com/abstract=1487530

Joel S. Newman (Contact Author)

Wake Forest University - School of Law ( email )

P.O. Box 7206
Winston-Salem, NC 27109
United States

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