I'm about to receive a large amount on money, if I deposit it all into my bank will the bank notify IRS of this deposit?
Appreciate what ever advise you can offer.
2007-12-09 21:53:31 · 8 answers · asked by little sister 5 in Business & Finance ➔ Personal Finance
I sold my old car, the guy is giving me 11 thousand cash for it. Some of my friends were telling me that I can get in all sorts of trouble when I deposit it. They have been telling me I shouldn’t deposit the whole thing just half. I don’t want to do the wrong thing.
2007-12-10 09:48:21 · update #1
The bank is responsible for notifying the IRS part of the Bank Secrecy Act of 1970. I just had a large $ transaction one month ago. I wasn't asked to fill out any paperwork. It is just a mechanism to avoid money laundering and tax evasion.
It isn't necessarily something to be concerned about. I had a valid non-taxable reason for the transaction, so if the IRS asks, I'm prepared to answer the question. Just be prepared to explain why you are making the transaction.
Little Sister - based on your additional details, there is absolutely no issue here, unless you're in business to sell cars at a profit. This stuff happens all the time. Does it need to be reported?...sure. But it isn't a taxable event. Deposit the cash and if you have to fill out paperwork, then do so. This scenario poses no threat to you.
2007-12-09 22:09:58 · answer #1 · answered by Griffin 4 · 3⤊ 0⤋
Depositing Large Amounts Of Cash
2016-11-03 15:13:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The bank is required by law to records deposits over $10,000. If this is a legitimate insurance settlement, you have nothing to worry about. If you are in any doubt about the source of the funds, don't spend it for a week or so. If the check is bogus, the bank will want the money back. Grandpa
2016-03-14 06:40:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, just get ready, there is alot of red tape to go thru, banks set limits on amounts of money deposited into an account in a single day, "to fight terrorism" sounds funny but you'll see, you may want to cal the bank ahead of time so they can advise you. I worked at a bank for 3 years.
2007-12-09 22:03:40 · answer #4 · answered by INFINITY 2 · 0⤊ 0⤋
When you deposit more than $10,000 in CASH the bank will fill out a Currency Transaction Report. They will need a copy of your state issued I.D., which is required for the report.
This form is also done when you take more than $10,000 in CASH out of your account.
If you are depositing a check, a CTR will not be done.
Why would you not want the IRS to know about this deposit?
2007-12-09 22:26:38 · answer #5 · answered by terribrooke 5 · 2⤊ 1⤋
Yes.
2007-12-09 22:01:14 · answer #6 · answered by regerugged 7 · 0⤊ 0⤋
If its over $10,000.00 they make you fill out forms for the IRS.
2007-12-09 21:58:47 · answer #7 · answered by ►►BLOGGER◄◄ 5 · 0⤊ 0⤋
Can I borrow $20?
2007-12-09 22:02:03 · answer #8 · answered by Sweet James Jones 2 · 3⤊ 3⤋