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How does the IRS even find out you buy a car? There’s no federal sales tax. You just pay your state taxes.

If it’s a “nothing fancy” car, maybe a 30k accord or less, and he has a good income, it’s not going to raise any flags with either state or fed.

Bottom line - pay your taxes and you’ll be fine.

I can’t emphasize enough how good a feeling it is to have the title to your own car.

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I believe that any movement of $10,000 or more is automatically reported to the Feds. A systematic movement of say $9,000 multiple times to avoid that would be viewed as structuring and you might draw their attention as well.

--edit (a word)--

the IRS would find out when the seller reports the sales income, unless the seller is truly crooked and cooks thier books up in some way, such as fees to a consultant who died in a house fire thus all his records are burned and gone.

Is there a federal sales tax on cars?

im sure there is a federal tax on annual revenue, regerdless of what your business sells

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