I always heard that if you deposit more than $10,000 the bank reports it to the IRS....... I'm from NJ and called the bank that I deal with and told them I had a check for 20k ( no I didn't tell them it was from internet gambling) and asked if they reported to the IRS and they told me no, they said it just takes longer for the check to clear, then I called a different bank and they said the same thing....... any truth to this red flag I hear about?..thanks
I *think* that I remember Wild Bill writing that each 10K is like a tick that the banks report to the IRS, so that audit flags can be risen if you get 25 ticks but report 50K in income. I may have completely "misunderestimated" this, so hopefully Wild Bill can chime in and speak to this.
christof said:
that is correct. cash deposits and cash withdrawls trigger reporting by banks. believe me when i tell you that if banks reported every deposit of $10,000 or higher (non-cash), they would not have time for anything else.
what they are concerned with is potential money laundering. if you deposit a check, there is a paper-trail. if you write a check, there is a paper-trail. the same is true of wires, ach credits/debits, etc. this can all be tracked and is how 95% of all transactions take place.
cash deposits leave no trail. no one can prove where the cash came from...that is why large cash transactions are reported.
if you're depositing checks, don't worry about the bank reporting it. i am not saying "don't pay taxes" or "this will never come back to bite you"...i am saying the bank will not report this to anyone.
if you have cash to deposit (like from a local for example) make it in amounts under $5,000 and you'll have nothing to worry about. $10,000/day is the reporting trigger. however, if you have a ton of cash to deposit, don't play games like depositing $9,500 on monday...then come in tuesday with another $9,500. you do that and they'll report it as suspicious because you are trying to get around the $10,000/day.
banks could care less if you pay your income taxes or gamble. they care about cash transactions.
First off, I would like to know what book would not send you the funds in the form that you requested. They should have no input on how you ask for the funds. (what amounts the check are for)
Second, it is really up to the bank teller if they are going to make an issue over it. If you are a regular customer and have a good relationship with the bank and maintain a decent balance they will likely not make a issue out of it. If however you have say a 5,000 ave. balance and you deposit a 20,000 international check, they may report it, but still doubtful. I have been informed that a 20,000 bank wire is more likely to be scutonized than a 20,000 check
Lastly, the last thing you should do is deposit 7 different 3000 checks into the same acct. They call that a structured deposit and the are far more likely to check into that. My advice wuld be to have numerous different accts with decent balances and deposit maybe 2 checks in each acct. over the course of a month. Maybe a little extreme, but trust me it is better to be safe than sorry. Also you really should look into opening an offshore checking acct or 2.
Second, it is really up to the bank teller if they are going to make an issue over it. If you are a regular customer and have a good relationship with the bank and maintain a decent balance they will likely not make a issue out of it. If however you have say a 5,000 ave. balance and you deposit a 20,000 international check, they may report it, but still doubtful. I have been informed that a 20,000 bank wire is more likely to be scutonized than a 20,000 check
Lastly, the last thing you should do is deposit 7 different 3000 checks into the same acct. They call that a structured deposit and the are far more likely to check into that. My advice wuld be to have numerous different accts with decent balances and deposit maybe 2 checks in each acct. over the course of a month. Maybe a little extreme, but trust me it is better to be safe than sorry. Also you really should look into opening an offshore checking acct or 2.
bazookajoe said:
