Posted by JohnBoy on January 16, 2001 at 23:24:51:
Cash or checks, doesn’t matter. Any transactions of $10k or more, unless you were borrowing the money as a loan. Then if you took cash or a check in the amount of $10k or more and spent it on something the IRS would be notified by the retailer you spent the money with.
I just wanted a few opinions about making deposits over $10,000 into your checking account. I’m aware of a law that requires banks to report this to the IRS, and that it may increase your risk of audit.
On the few closings I’ve done so far, I have always asked the title company to issue numerous checks, all under $10,000. Then I don’t deposit more than one a day.
Am I wasting my time, or could this be a worthwhile practice?
Posted by TeddyB_SC on January 17, 2001 at 22:03:46:
this sure sounds like “structuring” to me. It is against the law to structure financial transactions to avoid triggering the need to complete a CTR. This includes paying $9,000 today, $9,000 tomorrow, and $9,000 the next day, in order to purchase say, a $27,000 vehicle.
…that 10K that you deposit have to be all CASH before the IRS is notified? I was under the impression that the 10K had to be all cash in order for the bank to be notified. I may be wrong on this though. Something to look into though.
Posted by JohnBoy on January 16, 2001 at 23:04:03:
It’s not just depositing $10k into bank accounts either. Everytime your account balance reaches $10k increments the bank notify’s the IRS. Everytime you take out $10k or more the IRS is notified. Everytime you spend $10k or more on anything, the IRS is notified. So just depositing smaller checks into the bank will make no difference if the money is going into the same account. Each time the balance hits the $10k mark the IRS is notified. You would have to open separate accounts in different banks. Then make sure you watch the balance if the accounts earn interest. Once the interest you earn reaches a balance in your account of $10k, the IRS is notified!
If you buy a car over $10k and pay that amount or more up front, the IRS is notified. If you walked into the bank or Ford Credit to pay off a car loan that was $10k or more, they notify the IRS.
Since your sale is on record the title company will notify the IRS.
If you take $10k or more out of your account, the IRS is notified!
You can’t hide from the IRS unless you live and do business under a mattress!!! LOL