BofA or WaMU automatically report to IRS if cash deposit is at least $10,000. How about withdrawl?

Question

If u withdrawl more than $10,000 at one time, will it get reported to IRS? Does it matter what city or state you're in? I want to buy a used car & this guy wants all cash in amount of $14,000. I checked & the car is legitimate.

Answer 1

Yes, financial institutions are required to file Currency Transactions Reports (CTR) for withdrawals of $10K or more in cash and/or certified checks. They are also able to report any other suspicious behavior which may in fact not reach the $10K threshold but appear to be suspicious. For example, multiple deposits right under the threshold, etc.

Having said that, the seller would also be obligated to report the transaction. I would be very cautious, however, of paying cash for a vehicle, especially such a large sum of cash. The more prudent business arrangement would be to send a wire transfer. Wire transfers are not considered "cash" and don't fall under the CTR requirements.

Wire transfer is the smartest move, if not for your own protection. That would eliminate the possibility of you getting "ripped off" standing in the driveway or otherwise robbed along the way. Believe me things like that happen.

You should also question the seller's reason for cash. He obviously doesn't want a paper trail which would be to your benefit. To me that is one big red flag but I am the skeptical type having been in law enforcement for 20 years.

If you insist on carrying the cash, be sure to retain the receipt on you so that you may provide proof of the origin. You wouldn't want to get stopped for speeding and have the cops seize the money as illicit.

Answer 2

All banks report to the IRS if you earn interest in your accounts on any balance regardless of size because the interest you earn is taxable. You might be thinking of other requirements that the bank regulators are using because of the USA Patriot Act, banks have to report suspicious activity or flag deposits and withdrawls over certain amounts for anti-money laundering purposes. That may be BofA and WaMu's policy. I don't *think* your withdrawl will be reported to the IRS, but may be flagged for suspicious activity.

Answer 3

Yes, I actually work for a bank and it is called Large Currency Reporting and all banks are required to report transactions over $10,000.01 to the IRS. For compliance with the US Patriot ACT. As long as you are benefiting from the withdrawal or deposit it will be reported.
In addition if you try and make numerous withdrawal for under the amount the system that is used to capture these transactions will capture it as suspicious and further research will be conducted.
I would be a little concerned as to why he needs it all in cash. To me it sounds like he may be trying to get around reporting to the IRS, or he is trying to set you up in some way. I would be a little cautious of following through with this business deal. For your protection you may want to try to convince the seller to allow you to pay in the form of an official check or money order, so that you have some sort of protection and paper trail.

Answer 4

Yes the (United States) secret service requires that any cash transaction (at a bank or anywhere!!!!) over $10,000 must be reported.

This used to be originally because of money laundering... but now it includes looking for terrorists.

I think it's nuts to deal in cash like this. You can easily certify a check. This sounds like something you should run away from.

Start running!

Consider yourself warned.

Answer 5

Yes, banks are required to disclose any cash transaction of 10,000.01. So basically any deposit, withdrawal or trading of money over 10,000.00. There is no way around it. They will need all your personal information plus job information. They want to make sure you aren't laundering money.