Not by the recipient, of course, at least not in the US.
And buying brand new $60K cars very neatly falls under the heading of “acting hood rich and stupidy” and I covered that already. My point being is that this isn’t a money laundering situation where you have to constantly find new ways to hide new cash you’re generating, this is a one time infusion. Do whatever needs done to protect it, like stashing parts of it in safe deposit boxes here and there and don’t quit your day job, just use the cash for buying groceries and filling up the gas tank and buying your movie tickets and whatever. Having $500 cash in your pocket isn’t in any way unusual and the most that would happen is that people think you’re a little eccentric–but the fact is that the gubmint has to get a warrant to go after your safe deposit boxes or to search your house but needs very little to just snag money out of your bank accounts–electronic money is amazingly easy to steal if you have enough authority.
Want a new car? Either buy used from private sellers or use some of that stashed job money in your savings account for the down payment and finance a new one. If you use, say a grand a month on incidental this and thats and use the cash, that’s a grand a month accruing in your bank account proving you’re a solid citizen of frugal habits. Be smart about it and that million bucks could easily last the rest of your life, providing much needed slack to your daily existence. Act stupid with it and get busted, no skin off mine. I was a daily felon for over forty years before they legalized weed and have never had so much as an eyebrow twitch over it, mostly because I’m not so stupid as to act the fool the way a lot of people are who ended up busted over it. Discretion goes a long way toward keeping you out of the news.
Tax is due, but by the uncle or his estate. If he did it on the sly without telling his lawyer before his last skydiving adventure, then yes, you have the problem of proving where it came from. “My eccentric uncle gave it to me” ranks right up there with “I was just holding it for a friend” no matter how true.
But you are right - you can buy a car with a small down payment; the catch is, to finance you need a valid income (income history?) sufficient to make the payments, which is what distinguishes the typical estate inheritor from the local drug dealer laundering their proceeds…
I suppose another trick is to work your way up - buy a cheap used car, trade for a nicer used car and under $10,000 cash, then again a few months later…
But you are very correct - the key is to not attract attention. Once the authorities start investigating, it’s a lot more difficult to get away with a cash lifestyle than it is when nobody notices. There are things like the “net worth assessment” which Revenue Canada can do, and I assume is a thing in the USA also - “you must have unreported income because you cannot afford what you have on reported income.” Plus, it only put off the inevitable, since sooner or later you have to come in from the cold and get into the system; I don’t know if old age pensions, or social security or Medicare or whatever, triggers questions about your lack of tax returns? (Social security as I understand required a history of contributions?)
Yes, unless those transactions go over $10,000, there is no issue with the IRS.
Although quite a few Gift Tax returns are filed, few ever pay any Gift Tax. The Gift tax is on the payER, not the payEE (the recipient) . If the gift is under $16000 per person, no reporting is done. More importantly, the Payer has a lifetime exclusion of 11million before a nickle is paid in taxes. So, Uncle Bill would not have to pay any gift tax, nor would the Estate pay any Estate taxes.
However, just take some walking around cash out of the Million, and walk in to your bank and deposit it. Then, move it to some investments, buy or pay off the house, and have fun with the rest. There is no need at all to be sneaky. It is your , and it is legal, and it is tax free. (But of course the you earn from those investments is taxable).
No question that people could often get away breaking the law. I am fairly confident that most tax cheating is gotten away with. And I am even more confident that most of us (meaning all citizens) would not knowingly cheat on our taxes even knowing that we would most likely get away with it.
YMMV. But doing it legally and ethically is not an onerous option.
But it is a lot easier to cheat when it’s not about a standard regular employment paycheque.
In this hypothetical no. There was a will involved so therefore probate, which likely means some tax statement about final estate tax and other liabilities.
Just found it and avoided probate?
Now unable to invest it and dealing with safes etc. …
Alternatively if likely not criminal proceeds then have it fairly free and clear. Easier.