Question about Receiving money

[melissaforpeace315]

I will be receiving 40k (via wire transfer) and was wondering if I would need to pay taxes on it? Or is it the person who is giving me the 40k the one who will be taxed on it?  Which one is it?

Side Note: If it is me who has to pay the taxes on it, what's the best thing to do? If I wait until tax filing season, then I'm afraid I will be hit by a penalty because of the fact that I owe more than I usually do. Also, how will the IRS know about this 40k to know to essentially "tax" me for it? Is it because of the tax doc that my bank will provide me that essentially shows me the 'interest' that accrues as a result of this extra 40k?

[VolvoGirl]

Depends why you are getting it.  Is it a gift?  An inheritance?  You do not report gifts received or given on your tax return.   Sure you will need to report any interest you get on it when its in a bank account.  The bank will send you a 1099 Int at the end of the year.  

[melissaforpeace315]

@VolvoGirl i think it's a gift