I am serving as a conduit for a friend by receiving money from PayPal and sending it to her through CashApp (her PayPal account is currently limited).
The transactions I am getting in PayPal are marked as "for friends and family", but the amount is likely to go over $600.
I will then transfer the money to my bank, and then transfer the money to her CashApp, where she presumably will pay taxes along with the rest of proceeds she gets from all of the sales.
My question is, am I also in danger of getting in trouble with the IRS on the following grounds:
PayPal may see my amounts being a little high (over $600), but are all marked as "personal", and from people around the world - it's unlikely I'm splitting a check with someone from Israel, and hence flag this and send me an 1099-k or report this to the IRS.
My bank, seeing that I get random inflow amounts through out the year, believe that I have a "side business" so that it report to the IRS.
The IRS having an expanded scope, is able to probe into PayPal or my bank, requesting information, and seeing the transactions, decide to audit me asking me to provide details on the transactions (which I cannot, since they're my friend's sales, and by that time, my friend is likely to be back to her home country and might be difficult to get a hold of).
Lastly, would I be safe if I stop before receiving $600 on my PayPal account?