without getting a red flag from the bank to the IRS? We have customers who like to pay in cash, but I was told this could lead to unwanted, uneccessary questioning from the IRS. Somewhere I heard 10K, but am not sure of this....?
2007-10-11 10:09:51 · 8 answers · asked by bijou 4 in Business & Finance ➔ Other - Business & Finance
H.ell yes, we're totally legit. But, I've gone through an audit before, and to say it was a horrid experience would be an understatement. I actually developed shingles during the whole thing. Everything was cleared up, but I NEVER want to go through that again. What happened to 'a kinder, gentler IRS'?
2007-10-11 11:37:29 · update #1
As a former business owner, there is no limit to the amount of cash you are allowed to deposit. If your deposit includes a cash transaction over $10,000, it may be questioned. But as long as you can show the IRS a copy of the Invoice, customer account statement, or other proof that the deposit's legit, you should not have any problems.
If you cannot substantiate a large deposit of cash into a bank account, do not deposit it.
2007-10-11 10:16:48 · answer #1 · answered by ~RedBird~ 7 · 1⤊ 0⤋
I would be very surprised if the check doesn't automatically clear (an IRS check is funded by the federal government, so unless the country fails overnight [always a possibility, I suppose] there is no way the check will not be honored unless it is a forgery [I'm not implying it is, but this is a BIG problem right now]). My suggestion would be to just go to a Wal-Mart and cash it. They will charge you a fee but there is a CAP on how much they can legally charge. If they won't cash it or want to give you a hassle about the fee (if it's too high, I mean) say THANK YOU and start walking around the store casually chatting to other customers (best if in earshot of a floor manager) about how stupid their check cashing policy is. Wal-Mart doesn't want negative customer feedback so if they aren't serving your needs, LET THEM KNOW IT.
2016-04-08 03:42:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
okay, its not a big deal. if you do deposit or withdrawal 10k or more, then you just have to tell the bank your occupation-- that's it, they do all the work by filling out a currency transaction report. they do this so that they can prevent money laundering (mostly amongst aiding terrorists) etc. If your business is legitimate you have no worries. There are other algorithms banks use to determine structuring deposits so that they can tell if you are being suspicious or shady in the amounts you are depositing (just under 10k for several days). In this instance, you will not know if they are flagging/ reporting you by completing a suspicious activity report.
2007-10-11 10:26:31 · answer #3 · answered by starrimari 1 · 2⤊ 0⤋
As much as you want it is your account if you are worried about it then I would guess the money may be a little questionable and if that is the case then don't deposit it at all cause the IRS can audit you for anything at anytime. If everything is legit then just put it in.
2007-10-11 10:14:18 · answer #4 · answered by Anonymous · 2⤊ 0⤋
They will not confirm that, but banks are required to report large sums of cash. If you have a legit business that should not be a problem. Once you have a pattern, it will not result in any hassles. Have been depositing $20,000 per day for years and never been questioned.
2007-10-11 10:13:52 · answer #5 · answered by united9198 7 · 1⤊ 0⤋
All transactions over $10K are automatically reported to the IRS, but banks also reserve the right (and are actually obligated by law) to report ANY size transaction that they deem suspicious.
2007-10-11 10:14:19 · answer #6 · answered by Anonymous · 1⤊ 0⤋
My advice would be to pay as many bills as you can in cash so that it becomes somebody else's problem.
2007-10-11 10:53:32 · answer #7 · answered by Anonymous · 1⤊ 0⤋
If you have nothing from which to hide, you haven't any concern.
2007-10-11 10:12:29 · answer #8 · answered by Anonymous · 2⤊ 0⤋