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OT- Is depositing certain amounts of cash in business checking a possible issue ?

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Milacron

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Sold a late Bridgeport mill for $10,500 recently and the guy drove all the way from Indiana and paid in cash. I didn't demand cash, that's just what he wanted to do. He mentioned something about having to fill out a form at his bank to say what the money was for.... which gets me to wondering if me depositing his cash in our business checking might put me on an IRS hit list or whatever ? Wondering if $10K is the trigger point for that....
 
Sold a late Bridgeport mill for $10,500 recently and the guy drove all the way from Indiana and paid in cash. I didn't demand cash, that's just what he wanted to do. He mentioned something about having to fill out a form at his bank to say what the money was for.... which gets me to wondering if me depositing his cash in our business checking might put me on an IRS hit list or whatever ? Wondering if $10K is the trigger point for that....
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there are known cases where a person got arrested for just having more than $10,000 in cash on them and money was confiscated and it took many months and paying for a lawyer to get the money back. apparently the government assumes large quantities of cash and something illegal must be going on.
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banks are required to report all bank account changes that add up to more than $10,000. in a month i believe. so even 2 smaller payments adding past a limit get reported to the government. you could always ask your bank
 
Without going into detail, I can tell you that the amount that can get reported is a whole lot less than 10K. Due to confidentiality restrictions I can't go into detail.

Do a little googling on the subject. I'm pretty sure the information is out there.

Also, just because it gets reported doesn't mean that guys in black coats will show up at your door. I have deposited cash in the 2 to 7K range and not had a problem. As long as it is legit you shouldn't have a problem. If you are dealing drugs and have no explanation of where it legitimately came from, you will have problems.
 
As far as I know, $10K was the trigger for the Feds to suspect money laundering. Now, I think it's even lower. I don't think a deposit is as much of a problem as a withdrawal, you can hang onto the cash and make two deposits a couple of weeks apart and I don't think it will raise any eyebrows.

It's getting ridiculous.

My boss went to Las Vegas a year ago and took well over $10K in cash with him on the plane--or at least he tried. He spent a long time explaining to TSA and everybody else why he had so much cash. I never found out if he was allowed on the plane or if he had to leave some behind or turn it over to the Feds.
 
As far as I know, $10K was the trigger for the Feds to suspect money laundering. Now, I think it's even lower. I don't think a deposit is as much of a problem as a withdrawal, you can hang onto the cash and make two deposits a couple of weeks apart and I don't think it will raise any eyebrows.

It's getting ridiculous.

My boss went to Las Vegas a year ago and took well over $10K in cash with him on the plane--or at least he tried. He spent a long time explaining to TSA and everybody else why he had so much cash. I never found out if he was allowed on the plane or if he had to leave some behind or turn it over to the Feds.
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there was a news story of a local business depositing tip money every week and cause it was over $10,000. in a month and it was reported to the government and the bank account was frozen until he talked to the government and from what i hear he had to prove it was legal and taxes were being paid on it.
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obviously the business owner was pissed at the bank. he was under the assumption if individual deposits were under $10,000 he was ok. he was later informed it is the total per month over $10,000 that gets reported
 
Sold a late Bridgeport mill for $10,500 recently and the guy drove all the way from Indiana and paid in cash. I didn't demand cash, that's just what he wanted to do. He mentioned something about having to fill out a form at his bank to say what the money was for.... which gets me to wondering if me depositing his cash in our business checking might put me on an IRS hit list or whatever ? Wondering if $10K is the trigger point for that....

I can tell you from personal knowledge that many banks are setting their own limits at $4,999.99. And yes, that is coming and going. They, and their governmental counterparts have gotten a LOT more intrusive.
 
Strange. I've made cash deposits in the $20K range and don't remember anything odd about it at several different banks.
 
Play their game. Open many different business and personal accounts in as many different banks, setup dummy corporations, run it through the Caman Islands. It will drive them nuts thinking they have a big time case.

Tom
 
If you deposit the entire 10.5K at once it will be reported. Chances are nothing will come of it. I am a landlord and despite asking tenants to pay me by check or money order, some of them can't seem to do that. I'm pretty sure some of my deposits have been reported but I have signed leases and report the money as income so there isn't much to worry about. There are also reporting requirements if the financial institution thinks that a person is making multiple deposits to stay below a certain threshold.

Bottom line is that if you can prove that it is legit, you have no problem.
 
I don't think a deposit is as much of a problem as a withdrawal, you can hang onto the cash and make two deposits a couple of weeks apart and I don't think it will raise any eyebrows.

That is the last thing you should do.

a) you still have to fill out the form 8300 because you received >10k
b) structuring a transaction to get around the 10k reporting limit is illegal. There is nothing illegal about depositing >10k, the bank fills out a currency transaction report, and you're good to go. Splitting your transaction to get around that is illegal.

I've heard from some bank manager friends that you're actually better off making a $10001 deposit than a $9999 deposit. For the 10k deposit, they fill out the currency transaction report and that's it. For the 9999 deposit, they fill out a suspicious activity report because it looks like you're trying to avoid the $10k requirement.
 
Say you own a large very successful restaurant. You will likely deposit large sums of cash on a regular basis. The people who track that kind of thing know that you own a restaurant.

Same goes for someone who deals in machinery or any number of things.

But if you don't own a business or have any other obvious form of legitimate income but are depositing large sums of cash, those same people might just pay you a visit and ask where you are getting all the cash from. You better have a good answer.
 
I've read that banks are supposed to report all wire transfers above $10 000 US within US and also outgoing to other countries. What actually happens who knows? I've sent more than that as many others have and never once was interviewed about it by any government agent of any kind but as many have suggested that doesn't mean they don't monitor me (nobody really knows). For cash same thing. I think it's a control and surveillance thing and it's followed by the banking controls and some government agencies. Together they can at will make your life more difficult or monitor you more closely.
 
I can tell you from personal knowledge that many banks are setting their own limits at $4,999.99. And yes, that is coming and going. They, and their governmental counterparts have gotten a LOT more intrusive.

Back in 2004 I filled out paperwork because I took out $3,000 in cash to make a downpayment on my truck. I had a checking account but refused to pay their ridiculous ~$50 for my next set of checks. So I did stuff electronically or via cash. Might've been the policy of that bank and not the Feds, right, but just saying... some really, really, REALLY cover their ass, apparently.
 
Strange. I've made cash deposits in the $20K range and don't remember anything odd about it at several different banks.

There is no requirement to tell you that the notice, letter, or paperwork has been filed and in fact in many cases it is actually dissuaded. I am not asking you to believe me. Do some research about it. This is actually just shy of common knowledge these days. They simply do not advertise it.
 
Have none of you not heard of Dennis Hastert????

That is what his problem was all about and his trying to get around the problem.

Lee (the saw guy)
 
That is the last thing you should do.

a) you still have to fill out the form 8300 because you received >10k
b) structuring a transaction to get around the 10k reporting limit is illegal. There is nothing illegal about depositing >10k, the bank fills out a currency transaction report, and you're good to go. Splitting your transaction to get around that is illegal.

I've heard from some bank manager friends that you're actually better off making a $10001 deposit than a $9999 deposit. For the 10k deposit, they fill out the currency transaction report and that's it. For the 9999 deposit, they fill out a suspicious activity report because it looks like you're trying to avoid the $10k requirement.

Interesting. Thanks for the input!
 
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