depositing more than 10K in a bank at once.....?

Question

I know that if you deposit more than 10K at a bank at once, they will fill out some sort of form and report it to the IRS (or at least I'm told). My question is, what if I deposited $9300 on Wednesday, and I deposit $7K today (two days later) It is over 10K, but it is not at once. Will my bank notice this on some sort of audit and report it to the IRS anyway? I have about another 18K that I need to funnel in before July. I want to take it out of my safety deposit box and into an account that earns interest. The bottom line is that I used to have a side business that sold mattresses wholesale and it was all cash. I never filled out a business licnese, and therefore never reported any of it to Uncle Sam. I don't want the IRS auditing me to find out where this influx of cash came from and have to pay penalties and back taxes. So is it strictly 10K a day, or do they take a look at all of your deposits if they become abnormally high all fo a sudden? Thank you everyone.

Answer 1

If you deposit $9,300.00 today and then $7,000.00 two days later you will be fine.

The rule is for $10,000.00 in the same 24 hours.

By the way, the IRS does not have the right to audit any bank accounts.

To do that they need to get a Court Order and to do that they to give the Judge at least a reason.

The IRS audits only your taxes and not your bank accounts.

Only if they find something wrong with your taxes they will start an investigation.

The $10,000.00 is not a IRS thing. It's a NSA thing. (National Security Agency) and a FBI thing and a CIA thing (Outside the United States of America)

They are trying to locate all the drug dealers, terrorists, kidnappers, hitmen and other dangerous criminals.

It's not wise to place your name on that black list.

Answer 2

Careful what you write on here. They may be taking a close hard look at you as this is written. If it's cash stick it under your mattress. The bank has forms that are filled out when a sudden high deposit is made, especially if a bank account is usually dry, then when noticed the men watching Uncle Sam's back will take a fine tooth comb and walk into your past with high stepping boots. A sudden deposit is looked at as, maybe drug money, etc. Do the honest thing and file the necessary papers, for a business and pay the taxes. Being greedy gets you either a penalty, where you have to pay the taxes over a period of time or you get the jail house blues. And in future the Uncle Sam's will be peering over your shoulder, which you don't want.

Answer 3

The banks are extremely sensitive about CASH. The fact that you deposited cash and not checks may have raised flag at your bank. I wouldn't go back to the same bank anymore for cash deposit for a while. For the rest of money, try to open an investment account locally. Find Fidelity investment or something (not a bank) which has a customer service office locally. I would still keep the amount to $9000 at a time. Open a money market account with cash casually and say something like you were lucky to get the money as a gift from a foreign uncle. Since you don't want the cash in the house and you don't need to access it, you just want to put it away. If you can find two such firms, as might as well deposit 9k in one and 9k in the other. I don't think anybody will report you for that. Investment firms are regulated differently from the consumer banks and they are more used to people with large sum of cash.

Answer 4

I have worked at a Federal Credit Union. The reason behind the filling out of the form for deposits over 10K is so the IRS can track any illegal activity. A fiancial institution has 10 days to report such deposits. The form needs to be signed by the depositor plus the financial institution and dated.

Answer 5

You have a sort of a problem. It very well might come to the attention of the bank and the IRS. Open another bank account in another bank and deposit 5k in each. Buy a CD with it from each bank. That about as safe as you can get. Either that or deposit 2k a month for the next 5 months.

Answer 6

The bank would report it as possible money laundering. and it could spark an investigation you may try depositing in different banks to start with and merging accounts at a latter date. Also think about putting it an investment All at once such as an annuity or a brokerage account to where it will be making better income than the bank check with a financial planner but leave out the business deal just tell them you saved like grandpa in a mattress. :)

Answer 7

cor you crooker. but sounds like a nice one. if lumps of money were to be deposited in any 1 2 3 goes it will be reported. youll have to prove where this money came from to them. and the last thing you want is them siezing the account. if you want a good bank then get an american express gold account you can have this account with deposits over 10.000. they will not question the 1st 10.000 as a deposit. just tell them it was from a sale of a house. or left in a will etc. then build up on that. if however you draw money out from the account and it goes below the 10.000 then you will be charged for this. so good luck in what you do. and be 1 step ahead always.

Answer 8

You are correct about the IRS reporting for $10,000. The bank is required to fill out a form and pass it on. It's all electronic and really not a big deal. It does not mean you are likely to be audited. There are millions of tranactions a day over $10,000 and alarm bells are not going to go off.
Banks are also supposed to be on the lookout for "suspicious" transactions and customers. If you were to come in day after day dpositing amounts near $10,000, an employee "may" file some report. Coming in one day with $9,000 and a few days later with $7000 is not going to set anyone off.
Don't worry about it.

Answer 9

yes the bank will notice the fact you have several large deposits in a week and will notify the irs to investigate but if you have a ligitimate reason and proof to to support it such as reciepts or stubs you are fine but you really should contact them and just pay the taxes and penalties because after all they can find because you are on the internet asking this question they have people on the computers all the time checking for all kinds of criminal activity and thats why they ask the questions they do to open yahoo and other types of accounts and they can link yoour internet connection straight to a address be careful on the internet its no such thing as a secure connection

Answer 10

If it is something you are doing once, don't worry about the fact that it has to be reported -- the IRS will only know that it was deposited, not why. They would be unlikely to look into the reason for the deposit.

If you deposit large amounts all the time, then they will see a trend & investigate to see if it is taxable income.