Not A Tax Question...But A Bank Question

[MsTabbyKats]

I know in the past, if you made a cash deposit under $10,000 it was not "reported"....but $10,000 + was.

Is this still true? I can't find anything that says "it changed".

Just want a confirmation........thanks!

[rfassett]

Yes

[Jack from Ohio]

As far as I know, it is still the rule.

[joanmcq]

Yup, I have a client that was sweating this. She works in a developing nation and keeps part of her pay as cash in a safe. She was coming back to the US for vacation and had an idea something might happen, and brought back all her cash. Good thing since her office was evacuated while she was gone. But not only did she deposit more than 10k, she also entered the country with more than 10k. I have no idea what the treasury does with this info if your not a drug dealer or other criminal type.

[Gail in Virginia]

Actually, while 10,000 will get an automatic report filing by your bank it is my understanding that they at required to report any suspicious cash transaction or pattern of transactions. So making two deposits of $5,000 might not prevent the report from being filed.

[mcb39]

Actually, while 10,000 will get an automatic report filing by your bank it is my understanding that they at required to report any suspicious cash transaction or pattern of transactions. So making two deposits of $5,000 might not prevent the report from being filed.

This is true. We got nailed with the paperwork when we did just the opposite. Made One deposit of two transactions. In WI, they would really like to check out $5000 cash deposits, but it is not mandatory yet. Several years ago, I spent all day with a State person who went through every deposit slip and every purchase and sale for the entire year.; looking for large cash purchases. This was the Auto Business books. We were clean and have never heard from them again.

[MsTabbyKats]

It's not a tax thing with me...or a client thing. DH and I are expecting a lot of cash...all legit. It's a choice...putting in the safe or putting it in the bank. At today's interest rates...it just might be easier to put it in the safe!

[Terry D EA]

There is a form for the bank, auto dealer; etc to report cash transactions in excess of 10,000. There is a stiff penalty for not reporting as well. This gives the IRS the right to investigate into the transactions to determine if there is any money laundering going on. As it has been said, if it is legit, then no sweat.

[Guest Taxed]

Yup, I have a client that was sweating this. She works in a developing nation and keeps part of her pay as cash in a safe. She was coming back to the US for vacation and had an idea something might happen, and brought back all her cash. Good thing since her office was evacuated while she was gone. But not only did she deposit more than 10k, she also entered the country with more than 10k. I have no idea what the treasury does with this info if your not a drug dealer or other criminal type.

When she came back to USA at the point of entry she had to fill out a customs declaration form and one of the questions if I remember correctly is cash and equivalent being imported into USA. If she answered correctly she is ok. I also remember if you lie on that form and they catch you the cash is confiscated!

[joanmcq]

Yes, she did fill out the form. It wasn't much over 10k, but she's the type to worry. Now I'd worry if I lived in a country where you're ordered to evacuate due to armed rebels taking over the Capitol, but to each their own!