Quoted from rosh:I think the only claiming he has done was that he had a license.
While a cash deposit of over 10K at your bank results in paperwork to the IRS, not sure how transfers from paypal to a bank account would come into play. Regardless, if he was doing them as they came in, they would all be under the reporting requirement. Doubt the IRS is going to catch this unless something else (or someone) brings it to their attention.
But when he files his taxes, won't he have to pay interest on the money in his bank account? If that's the case then the IRS will most definitely want to know where the extra money came from. If your account goes from having $1000 in it to having $50000 in it, someone will notice. It is very hard to receive a substantial dollar amount and not pay taxes on it.
