As long as you don't make a deposit for over $9,990. Thats when they red flag you.
actually it is DEPOSITS totaling OVER 10k in any 30 day period
so if you make 3 deposits of $3500 in a 30 day period a transaction report is generated
also any suspicious activity is reported by the teller. so if the teller thinks it is suspicious she/he fills out a report regardless of the amount.
if you take out a grand in cash, even though it is none of their business you should make a comment like, can you give me nice bills these are going in cards for upcoming graduations or if you are putting in cash, comments like, I just sold my fathers old clock on craigslist... that way the teller isn't left to their imagination
Ahh ok thanks for dropping knowledge. You a attorney or something bro?
the irs doesn't give a crap about how you made the money, to be compliant you need to claim any and all income so a tax can be levied.
the pot growers in colorado... they are supposed to claim every penny... the catch is since it is against fed law they can not claim expenses for a deduction like other biz do.
as far as i know there is no fed law against a person making a bet (there may be state laws)
there are fed laws concerning the movement of money
there are fed laws concerning the concealment of funds from their original purpose
there are fed laws concerning the way you structure the deposit or withdrawal of funds to circumvent mandatory reporting
look at it like this.. you take a vacation to the Caribbean, you gamble at one of the casinos and win big. those casinos have no requirement to report your winnings to the US... you bring the money back home and put it in the bank. at tax time it is up to you to declare it as income. if you don't and you get audited the IRS has might think that deposit was income, from what they can only guess? drugs, whoring, gambling? mowing lawns? they don't care. you just need to make them believe its not income.
if you don't think you can do that then the irs will just say it's income and you pay tax and penalty yada yada jail time yada yada.
now let's say you go the extra mile and try to hide this money by putting it in the bank in small deposits over time... you just added structuring and money laundering to your tax avoidance charges
actually it is DEPOSITS totaling OVER 10k in any 30 day period
so if you make 3 deposits of $3500 in a 30 day period a transaction report is generated
also any suspicious activity is reported by the teller. so if the teller thinks it is suspicious she/he fills out a report regardless of the amount.
if you take out a grand in cash, even though it is none of their business you should make a comment like, can you give me nice bills these are going in cards for upcoming graduations or if you are putting in cash, comments like, I just sold my fathers old clock on craigslist... that way the teller isn't left to their imagination
LOL, here any transaction over 10k is reported to the IRS.
Same in Indiana and any other state, I guess
you should also do a little googling on IRS Form 8300
Why should I have to be sneaky about how I deposit these checks?
Truelet me just say this, banks can be held responsible for their customers money laundering activities, IF they are not compliant with certain procedures and record keeping. banks like to cover their ass so they do everything in their power to be compliant.
one of the things banks do is to deploy BSA / AML software. it looks at each and every customers account(s) and tries to ID patterns that can be prosecuted as money laundering or structuring. mostly what they are looking for are CASH deposits or withdrawals that look like smurfing.
Buying a $3000 money order with CASH triggers reports, but buying a $3000 money order with money in your account doesn't.
so Mr. Smart Guy thinks he can overcome this easily by depositing $300 a week in cash for 10 weeks and then buying a $3000 money order with the money in his account. that is what the software is for, it can ID patterns like this.
so Mr. Smart Guy gets sneakier, he deposits a little cash, then gives some cash to his friend who writes him a check that he deposits to his account and so and and so on till he gets his $3000 cash converted to his account so he can get that money order to send back to Pablo in S.America to cover the cost of the last shipment of blow.
well, if Mr. Smart Guy does this a few times a pattern will develop, and his name gets put on a list.
99.99% of the time a guy goes down because of the laws he broke trying to hide activity that is embarrassing but not illegal.
deposit 20 grand cash in your bank account, and yes a CTR will be generated on you...so what? now someone has to prove that 20 grand was illegal.
make a deposit of 5k then a week later 6k and a week later 4k and then a week later 5k they have you... no need to prove that 20k was from illegal activity, structuring those deposits in order to keep them under reporting limits is the crime.