Is it illegal to hold money in my bank account for someone else? 3 Answers as of January 19, 2011My boyfriend owes a substantial debt to the county for child support as well as a few judgments to others. I believe he is under reporting his income to avoid paying these debts. (His argument has something to do with being a self-employed 1099 employee instead of a W2 employee. He's claiming that when the court asks about his income, he is only obligated to report his income after his written off expenses.) Is it illegal for me to "hold" money in my bank account for him so that his account will only reflect his reported income? This money would be used to pay our joint living expenses. If this is not illegal, would I then need to treat it as if it were my income and report it as such to the IRS and other governmental agencies?
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
This is really not a good idea. In a worst case scenario, the IRS and/or his ex-spouse and the state of residence could take the position that he is being fraudulent and you are aiding and abetting him in his fraud. You need to question what type of person places you in jeopardy to save a couple of bucks. This is most likely illegal behavior, but it is clearly immoral. He is basically engaging in a conspiracy with you to cheat his children out of being supported by his father. You need to think about this situation not only from a legal exposure perspective but from a personal perspective as to what you will be a party to.
Answer Applies to: Pennsylvania