[macerico]

If all the money he has is "clean." Fine.

It sounds like he's gotten some FRNs in private transactions that were not reported as "income" to the IRS gestapo.

Nonetheless, he put all his FRNs in a bank which is nothing but a way for the IRS to locate and track all your FRNs.

I think he has nothing to be concerned about. If the FRNs in his account will cover the debt, nothing should come of making a lump-sum payoff...especially if something like the sale of a home would explain the mass of liquidated assets.

Unless he's concealing his capital gains and hoping the IRS doesn't find out, nothing will be realized by being secretive about the matter. His assets are already being tracked or are trackable at will. If he was hoping to keep something concealed from tracking in our monetary system, he would have had to never put the money into a banking institution.

EDIT....

Man A gives Man B cash for house in private transaction. Reporting requirements for sale is on Man A who must record the deed. I believe Man B has IRS reporting requirement but only to the IRS. Man A reports the amount to the deed records office which assess a transfer tax on the property.

If the transaction was paid via cash but no misrepresentation is made as to the amount of the transaction, there is nothing to worry about here. It is nobody's business if a house was bought via bank check backed by a loan or cash on the barrel silver and gold coin or a truckload of goats. There is no duty to disclose who actually bought or sold property outside of what gets put on the deed to be recorded. The seller must be identified to match the existing valid deed. The buyer can be anyone (even a business, for identity protection purposes).

I think he's being unduly paranoid...unless someone misrepresented how much was actually paid for the property.