If my rental properties are idling, how can the IRS find out about rent sent to a third party?

by Amy M. Fox, CPA | Jun 01, 2018

I have properties under my name, and I receive rent wired to my foreign account. I understand those are taxable. If I ask the tenant to send money to a friend’s account, I also understand that money is available to me and taxable. But, if I say those properties were idling, not rented out, how could the IRS find out? 

You are asking about tax evasion, which is illegal. You cannot evade taxes because you don’t think the IRS will ever find out that you under reported your income.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Amy M. Fox, CPA, is with Zippo Manufacturing Company in Bradford, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
Financial FAQs

Search the most frequently asked finance and accounting questions and read the responses from PICPA members. Always consult a CPA before taking action.