"Steve" wrote in message
...


Yes, but this doesn't imply that those with brokerage accounts
necessarily tell the truth 100% of the time. Even if you're only
trying to throw up a smoke screen here, you'll have to be more subtle
than this.

Investment accounts are subject to 1099 reporting. Any brokerage account
1099 will show distribution of dividends, long and short term capital gains
and any other taxable transaction, with the data being transmitted to the
IRS electronically. I even have an account that I closed but which ended up
with about $30 left sine some kind of dividend was in processing when I
closed the account and I get an annual 1099 for a couple of cents of
dividends and occasional capital gains of a dollar or two. I have to put
that on my tax return, too.

I can't see how anyone could hide income or capital gains from a brokerage
account since the IRS gets all the data automatically on every such account.
The IRS computers can instantly note a mis-match of income reported at the
source and income declared on a return. Heck, even the interest on checking
and savings accounts gets reported to the IRS.