5 ms·

Just don't buy a mansion, they might sue you for it back a year later like crypto.com did https://www.google.com/amp/s/www.cnbc.com/amp/2022/09/01/crypto-platf

• Gigachad 4y ago
  Just stick it in a high interest savings account and enjoy the free gains for every month until they claim it back
  • maguirre 4y ago
    Won't it be a problem come tax season? He would have to report that as income which will cost more than the interest he will get from a high yield acct
    • bagels 4y ago
      For tax purposes, consider it as a loan.
    • FartyMcFarter 4y ago
      The interest might be taxed as income depending on where you live, but I don't see how the erroneous transfer would be considered income if you have to give it back.
      • mannykannot 4y ago
        But if it was not an erroneous transfer (maybe, as some have speculated, an unannounced bug bounty) and this is not made clear before estimated tax payments are due, I suspect the default IRS response will be to charge penalties and interest on any late payments. One might get them waived, but not without considerable trouble and cost.
        • deleted 4y ago
          [deleted]
        • mrguyorama 4y ago
          The IRS is pretty chill if you aren't purposely trying to evade taxes. As a college student working multiple jobs, I had complicated taxes for a bit. Years later, the IRS sent me a letter that said "you forgot to declare this W2, so you owe us $270". I get nervous about phone calls and couldn't find a web portal to pay it, so I uh, "put it off" for a while. I never actually got in contact with the IRS. They just sent me a letter the next two years saying they took my state tax refund to pay it off and now it's done. I think I spent a couple bucks on interest over the course of multiple years. People have this weird concept that the IRS will do no knock raids on normal average americans for simple mixups. This perception is mostly driven by people who are ideologically against taxes entirely. Instead, the IRS is predominantly average people with accounting experience who are used to getting simple money mistakes solved. They also don't want to take you to court because they don't have enough money in their budget to take everyone they could to court.
        • skipwalker 4y ago
          Unless there's a 1099 sent to the IRS and the receiver, why would one report it as income?
          • bastawhiz 4y ago
            If you run a business, do all of your customers send you a 1099 for the money they pay you? No, that would be wild. Your revenue is still income (corporate or individual income). 1099s are only applicable for certain situations.
          • jrochkind1 4y ago
            Because if it was legally income, it is a crime not to report it. If the IRS discovers it later, they can charge you the taxes, plus interest, plus penalties, and in some cases prosecute you criminally (see Al Capone). Whether it needs to be legally reported as income or not is not determined by whether someone else already filed paperwork for it or not. I don't know if this would need to be reported as income or not, under what circumstances; I'd talk to a lawyer or CPA. whether someone filed a 1099 or not is not determinative.
    • jrochkind1 4y ago
      I'd say for $250K, it's definitely a good idea to talk to a lawyer, asap, rather than try to handle this DIY. The lawyer will probably put it in an interest-bearing escrow/trust account, but they'll make sure it's done right.