Anyone ever had or worry about audits for large amounts of cash.. Its all legal but i wonder if it raises red flags to always be taking out alot of cash for our sc hobby?
Yeah im not worried about the outcome.. Obvi its all fine. But the pandoras box it would open up w my wife if i was ever qruestioned by any irs or something.. Once i cashed in a check for over 10G (which lasted me a few years of scing) and they took a bunch of documentation. That had me worried.. Evem tho in the end of course i have nothing to hide from the irs.. I have smthng to hide from my wife!
IRS rules require that large deposits of cash ( over 10,000) be reported to them except for large cash businesses such as grocery stores ect. Large withdraws are not required to be reported although the bank may want extra paperwork to protect themselves. FINRA rules require that any questionable deposits be reported . Multiple deposits of less than 10,000 could be reported if the bank found it questionable.
Dancers depositing large numbers of crumpled singles could be reported especially if covered in white powery dust.
Withdrawing or depositing large amounts (over $10,000) is not illegal, but it may be reported or call attention to you. The IRS is interested in cash income on which taxes are not paid, and the DEA is looking for drug activity. If you're doing nothing illegal, you don't need to be worried about the authorities, right? :)
I believe the old 10K deposit requirement has gone out the window since 9/11. It takes a smaller deposit to trigger notification, particularly in New York.
I think the $10K figure started with drug enforcement at our borders. If I remember correctly, they originally used a Depression area law requiring a declaration before transferring US cash in or out of the country. It is still a legal requirement to report cash over $10K when you enter or leave the US. Unfortunately, law enforcement nationwide has decided that large amounts of cash (even less than $10,000) "has" to be evidence that something illegal is happening.
A few weeks ago the local news reported that police had busted a drug house. As proof, the story panned across the evidence as the reporter identified; the two boxes of ziplock bags, the postal scale, an unregistered 9MM Glock, an ashtray containing suspicious ashes and (the coup de gras') $3,720 in CASH (gasp). No illegal drugs were found, but that cash money seemed (to the local news as well as the police) proof enough that bad things were occurring!
To keep this posting on topic for TUSCL purists, I think one of the people arrested for "suspicion" was a former stripper.
"Once i cashed in a check for over 10G (which lasted me a few years of scing) and they took a bunch of documentation."
Having worked at a bank for 5 years, I can assure you this is normal. They're required by law to do investigations on all deposits of 10k or bigger. They were just doing due diligence.
I hate to burst your bubble but the IRS is beginning to push to monitor ALL cash withdrawals with an eye to tracking it to tax the person receiving the payment. That is why you periodically hear of a bureaucratic push to ban all cash transactions with 'safety' as the excuse.
The truest danger to our way of life is the government.
I get paid in cash sometimes and I use that for day to day expenses instead of depositing it in the bank and using plastic. I don't want lots of cash going in to my account.
I've always believed that cash transactions of $10,000 or more had to be reported to the IRS by the banking institution. When I was spending a lot of money on strippers I raised my ATM limit so I could withdraw up to $2000 per day at any ATM. I never needed more than that.
A few years ago it was the 10,000 dollar rule that nailed former NY Governor Eliot Spitzer. He tried to outsmart the rule by pulling out money in separate transactions but the totals were higher than 10k. That lead to his being nailed for nailing prostitutes. He never actually triggered the limit of 10k, but his bank reported it anyway because it looked fishy.
On top of that Banks keep records of everything, its what they do or they couldn't function at all. All withdrawals all deposits are tracked for their own purposes and those records can be subpenaed or used as evidence. The 10k limit is for active monitoring.
I know you have to fill out a form if you take out more than $10K. I don't know about deposits. I remember when that was a lot of money. It's not so much any more when you consider I always pay cash when I buy a car.
In the 1990s before there were ATMs everywhere I used to regularly bring $5-10K in cash with me on trips out of the country. No more than $10K because of the forms.
But don't worry, the so-called "Patriot" act made it legal (although not Constitutional) for the government to get your bank records any time they want, and the bank is not allowed to let you know.
Is that just cash or foreign transactions? I know they are required to report anything suspicious or if they it's a series trying to sneak in under the $10k threshold.
With the bullshit rates these days, why would anyone keep large amounts of money in banks? All they do is find a reason to charge you for it. Fuck banks!
23 comments
Dancers depositing large numbers of crumpled singles could be reported especially if covered in white powery dust.
A few weeks ago the local news reported that police had busted a drug house. As proof, the story panned across the evidence as the reporter identified; the two boxes of ziplock bags, the postal scale, an unregistered 9MM Glock, an ashtray containing suspicious ashes and (the coup de gras') $3,720 in CASH (gasp). No illegal drugs were found, but that cash money seemed (to the local news as well as the police) proof enough that bad things were occurring!
To keep this posting on topic for TUSCL purists, I think one of the people arrested for "suspicion" was a former stripper.
And I can not even blame 'auto correct' or 'speech to text' or any of them fancy, newfangled dohickies.
Having worked at a bank for 5 years, I can assure you this is normal. They're required by law to do investigations on all deposits of 10k or bigger. They were just doing due diligence.
The truest danger to our way of life is the government.
On top of that Banks keep records of everything, its what they do or they couldn't function at all. All withdrawals all deposits are tracked for their own purposes and those records can be subpenaed or used as evidence. The 10k limit is for active monitoring.
In the 1990s before there were ATMs everywhere I used to regularly bring $5-10K in cash with me on trips out of the country. No more than $10K because of the forms.
But don't worry, the so-called "Patriot" act made it legal (although not Constitutional) for the government to get your bank records any time they want, and the bank is not allowed to let you know.