I've been living abroad for 7+ years, dutifully filing my US taxes each year, and am now repatriating back to the US. I want to transfer all my money to a US account (more than $20K). Would this trigger an audit?
I heard that any transactions made for $10,000.01 or more automatically triggers an audit from the IRS? Is this true?
The last thing I want/need while moving back home is to deal with the IRS!
2007-12-30 08:00:04 · 10 answers · asked by simya357 1 in Business & Finance ➔ Personal Finance
NO. Anything over 10k in CASH will result in your financial institution filing a report with the FBI. (It is called a CTR - Currency transaction report). They just keep an eye on you then for a little bit, but still it is not an audit. They will want to know your info, where you work and that is about it. Then if they KEEP getting that report and you don't own a business or have any other reasonable reason for you to be depositing that sort of CASH, there will be some questions they would want answered.
Nothing for you to worry about as long as you deposit a check or the BEST way would be via Bank Wire.
2007-12-30 08:05:56 · answer #1 · answered by Therapist 5 · 0⤊ 0⤋
That is not true. What the government is looking for are CASH transactions in excess of $10,000. Money transfers in and out of accounts all the time by wire or check. Banks are required to do additional reporting if the CASH transaction is $10,000 or more. You should have nothing to worry about as far as an audit. Be sure you have an excellent paper trail, though or they might call you in on money laundering.
Hope this helps, good luck.
2007-12-30 08:06:55 · answer #2 · answered by RANDALL M 3 · 0⤊ 0⤋
Most of these answers are incorrect, the fourth one down, rayray, knows what she is talking about. A few others offered some useful input. I have seen plenty of people 'freak out' when a teller tells them that the transaction will be reported. It sounds scary, but is not. They will make a similar report if you are acting suspicious or the transaction is unusual compared to your typical banking. In all reality, the report is going nowhere, but if for whatever reason you were caught up in criminal activity and related money laundering, then they would have a paper trail to go to. However, this would be after you were part of an investigation or arrested and a warrant was obtained. So, don't worry about it. That is of course, unless you are some kind of criminal.
2007-12-30 09:32:14 · answer #3 · answered by djasking 2 · 2⤊ 0⤋
I would sit on it. Worse than losing 10 million is owing 10 million and that's attached with a felony charge and jail time. If after a few months to a year no change, then I would start making deposits into offshore accounts in smaller increments until it was gone and high-tail it off this continent! You could afford a small army with that kinda moolah in less wealthy countries. Oh, and buy lots of bug spray.
2016-03-16 21:32:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Out of curiosity, when you filed your tax return did you also remember to file the form TD F 90-22.1? If you did, there's your paper trail that you've had this money all along and all you are doing is transferring back to a US account.
If you forgot to file the form TD F 90-22.1, does the amount being transferred back look reasonable for the amount of income/expenses you had during those 7 years?
As you can guess, the audit comes when the IRS wonders if you have unreported income.
2007-12-30 08:13:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It's not an automatic audit, the gov't just
requires all deposits of 10K+ to be reported.
You could deposit $9,999.99 and be OK, or 3+
deposits of smaller amounts.
It's legal, and done all the time.
If the guy above me is correct,
then the little Bushie pitchers have
lowered the amount to 5K,
So act accordingly.
2007-12-30 08:04:27 · answer #6 · answered by teetiger 6 · 0⤊ 2⤋
The bank will report the large transaction to the Feds, but that itself does not trigger an audit. Just because something is reported to the IRS doesn't mean that an audit is guaranteed. For example, my interest "income" is reported to the IRS by my bank, my earnings are reported to the IRS by my employer, etc.
2007-12-30 08:27:16 · answer #7 · answered by Rithy 3 · 0⤊ 0⤋
Large amounts of CASH trigger IRS reports. ARe you talking about Cash or checks? Checks and wire transfers are not a problem. They are looking for people moving a lot of cash.
P.S. And its not about an audit or taxes. Large amounts of cash trigger suspicions about drugs, money laundering, etc.
2007-12-30 08:03:22 · answer #8 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
Any transaction over $10,000 is automatically reported to the IRS, but that does not mean automatically you are audited.
2007-12-30 08:06:24 · answer #9 · answered by Anonymous · 0⤊ 3⤋
Yes. A bank MUST alert the IRS for anything over $5,000 deposited!
2007-12-30 08:03:41 · answer #10 · answered by Anonymous · 0⤊ 4⤋