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Curious on cash deposit rule over $10,000.00
Posted by: samintx
Date: January 10, 2009 09:06AM
As I read it the reporting to IRS is only if CASH over 10,000.00 is deposited in a BANK. Does not involve checks or transfers only CASH. Correct?

I wonder because of large sums possible in brokerage accounts if the IRS rule applies to brokerage account deposits of over $10,000.00. The brokerage deposits would be a check or wire transfer NOT CASH.(not sales of stock over 10,000.00. sales are ofcourse reported by the brokerage).

I guess the question in a nutshell : is it only CASH that is reported to the IRS not checks or transfers.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: PizzaGod
Date: January 10, 2009 09:12AM
That's pretty much at the discretion of the institution, and for the last few years when ever you'd make an issue out of it, invariably the people in charge would cite "homeland security".

I guess depositing $10,000 at a time in check or cash earmarks you as a terrorist.

I don't know the letter of the law-(sorry) but I filled out more paperwork that went to the IRS in 2008 than I ever have before.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: RgrF
Date: January 10, 2009 09:12AM
If your drug connection wants to issue you a cashiers check, you're home free.



When fascism Comes to America it will be wrapped in a flag and carrying the cross - Sinclair Lewis
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Re: Curious on cash deposit rule over $10,000.00
Posted by: Bill in NC
Date: January 10, 2009 09:20AM
It's cash that requires the Currency Transaction Report.

CTRs are so common ($10,000 in cash isn't much money anymore) they're routine for institutions, act nonchalant and treat it as no big deal if you are told you need to fill one out.

The thing you don't want filed on you is a Suspicious Activity Report.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: samintx
Date: January 10, 2009 09:26AM
I read that deposits continually of 5000.00 trigger reports. I was just curious because some people think if they give you a check for 9,999.00 you don't get reported but I guess it is CASH anyway that gets reported.
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Re: Curious on cash deposit rule over $10,000.00
Date: January 10, 2009 11:05AM
That's an old regulation, definitely predates the terrorist-sensitive era.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: rgG
Date: January 10, 2009 11:22AM
The original intent of the legislation was to prevent money laundering, IIRC.





Alpharetta, GA (Atlanta suburb)
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Re: Curious on cash deposit rule over $10,000.00
Date: January 10, 2009 12:22PM
It is at the discretion of the bank. I have heard of banks reporting transfers when there are several transfers below $8,000 in a short period. It can be cash or checks.



in tha 510.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: Panopticon
Date: January 10, 2009 01:37PM
Forget the $10K and it's not a CTR that will sound alarms. It's a SAR {Suspicious Activity Report} that will quickly get you noticed. And, a SAR can be filed by a bank, stock broker, or even a check cashing business.
Simply buying a few $1,000 money orders could do it. It's up to the reporting business.

Another goodie, you won't know a SAR has been filed on you. It's a Federal Offense to divulge the info on it, even to the 'subject' named in it.

Ain't freedom grand dunno smiley






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Re: Curious on cash deposit rule over $10,000.00
Posted by: space-time
Date: January 10, 2009 02:03PM
I guess when I flew in with 20k cash last year and I declared "nada" to the US customs, and then I put it in the bank the next day, I got pretty lucky since no one ever called me to ask about it.

(it was from the sale of my wife's old car and the rent from an apartment we own abroad)
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Re: Curious on cash deposit rule over $10,000.00
Posted by: BigGuynRusty
Date: January 10, 2009 02:06PM
Quote
space-time
I guess when I flew in with 20k cash last year and I declared "nada" to the US customs, and then I put it in the bank the next day, I got pretty lucky since no one ever called me to ask about it.

(it was from the sale of my wife's old car and the rent from an apartment we own abroad)
You could still be under observation.

BGnR



"Good heavens, Miss Sakamoto! You're beautiful!"
"If we dig precious things from the land, we will invite disaster."
"Near the day of Purification, there will be cobwebs spun back and forth in the sky."
"A container of ashes might one day be thrown from the sky, which could burn the land and boil the oceans."
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Re: Curious on cash deposit rule over $10,000.00
Posted by: deckeda
Date: January 10, 2009 02:18PM
Quote
Filliam H. Muffman
It is at the discretion of the bank. I have heard of banks reporting transfers when there are several transfers below $8,000 in a short period. It can be cash or checks.

Incorrect. Currency going into or out of your account of $10,000.01 will BY LAW commit the bank teller to fill out a CTR. And if the customer or bank teller attempts to circumvent that with multiple smaller amounts, that'll also find them in trouble. That's called structuring.

Checks and wire xfers are not currency and have no part in any of this.

CTRs are designed to highlight money laundering. Some types of businesses are exempt from having to have one filled out, because the nature of what they do is recognized as normally dealing with lots of cash. Sports arenas are the classic example.

[www.irs.gov]

[en.wikipedia.org]
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Re: Curious on cash deposit rule over $10,000.00
Posted by: deckeda
Date: January 10, 2009 02:29PM
Quote
space-time
I guess when I flew in with 20k cash last year and I declared "nada" to the US customs, and then I put it in the bank the next day, I got pretty lucky since no one ever called me to ask about it.

(it was from the sale of my wife's old car and the rent from an apartment we own abroad)

It's not like that. No one is going to ring you and ask about what you did while at the bank last month ... if you gave the bank teller $20K in cash they should have filled out a CTR, probably an electronic one nowadays.

Here's what a paper version looks like (may not be current) --- it also has instructions on how to fill it out (this is all for the bank teller, but for those in the audience who are paranoid you'll be interested as well.)

[www.fincen.gov]
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Re: Curious on cash deposit rule over $10,000.00
Posted by: cbelt3
Date: January 10, 2009 03:04PM
space, you're actually VERY lucky you just didn't get the money confiscated when you entered the country. Happens to a lot of people. Legal larceny- ain't law grand !
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Re: Curious on cash deposit rule over $10,000.00
Posted by: deckeda
Date: January 10, 2009 03:18PM
Quote
cbelt3
Happens to a lot of people.

Aw, c'mon now.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: AlphaDog
Date: January 10, 2009 03:57PM
Frankly I don't see what anybody has to worry about if they're not up to no good. If they are up to no good, then let's pass along erroneous information so they get caught. smiling smiley
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Re: Curious on cash deposit rule over $10,000.00
Posted by: Racer X
Date: January 10, 2009 08:07PM
I routinely deposit checks into my business account well over 10K, and have never had to fill out any paperwork.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: macphanatic
Date: January 10, 2009 08:30PM
Checks don't require paperwork as the flow of money is traceable. The issue is cash deposits. The $10,000 rule applies not only to deposits, but also purchases. My MIL was going to buy a $20k car with cash. The dealer told her that if she paid in cash, they would have to fill out paperwork and she would have to wait 3 days to pick up the car. He suggested that she go to the bank and have them issue a check.

The whole point of the law was to try to limit money laundering and also create a mechanism that forced people in businesses that dealt in cash to more accurately report their income. Makes it a bit tougher for drug dealers, etc to buy homes and cars.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: Bill in NC
Date: January 11, 2009 06:38AM
Yes, $10,000 is the upper limit to require a CTR, but you can be forced to fill out a CTR at whatever limit the financial institution determines.

The below is also why the $100 bill is the maximum denomination circulating (given inflation we should at least have $500 bills in circulation - 500 Euro notes do circulate)

Quote
macphanatic
The whole point of the law was to try to limit money laundering and also create a mechanism that forced people in businesses that dealt in cash to more accurately report their income. Makes it a bit tougher for drug dealers, etc to buy homes and cars.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: jepinto
Date: January 11, 2009 08:17AM
Once managed a bar. One good (make that VERY GOOD) weekend-reggae party IIRC-took my cracker box of sorted, paper clipped, all bills facing same direction, cash, dropped it off at local bank, went back to work. Got call to come back to fill out a CTR because even though the cracker box was not over 10K, the cumulative cash deposit for the weekend was. The night drop box deposits posted on Monday also.

Separate deposit slips, dates corresponding to actual date night deposit made.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: deckeda
Date: January 11, 2009 11:45AM
Quote
Bill in NC
Yes, $10,000 is the upper limit to require a CTR, but you can be forced to fill out a CTR at whatever limit the financial institution determines.

$10,000 doesn't require a CTR. $10.000.01 or more does. Maybe that's what you meant?

Quote
Bill in NC
... you can be forced to fill out a CTR at whatever limit the financial institution determines. ...

That doesn't make sense. The limit, or trigger, is set by federal banking law. It's not a discretionary thing unless the teller suspects structuring is happening, and even then it's not terribly hard to spot.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: macphanatic
Date: January 11, 2009 07:59PM
If you make multiple deposits within a few days of each other that are each less than $10k, but the total is above the limit the bank can make you fill out the paperwork.

My neighbor went through this during the first few months of starting his own business. Many clients paid him in cash. He was depositing between $5-7K per day. The bank manager "suggested" that he stagger his deposits a bit with smaller amounts until his business got established. Supposedly that once a business makes larger deposits on a regular basis, it's less of an issue. Don't know if it's true or not. Neighbor never had a issue with the IRS though.
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Re: Curious on cash deposit rule over $10,000.00
Posted by: Speedy
Date: January 11, 2009 11:43PM
Everyones accounts are monitored by Homeland Security. For all transactions.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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