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Old 01-28-2011, 12:01 AM
 
Location: SW Missouri
14,851 posts, read 17,990,785 times
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Does anyone here know at what point a bank deposit must be reported to the IRS? I tried to get my friendly neighborhood banker to tell me but they refused to do so.

I heard on the radio that as long as it is below $5,000 you are ok, but I was wondering if anyone would tell me the exact figure.

Thanks.

20yrsinBranson
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Old 01-28-2011, 12:44 AM
 
1,846 posts, read 1,010,244 times
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I have read/heard that $10K is the amount. But, banks may report suspicious behavior, such as several deposits of $9900. Or sequential deposits of even $5K, if it looks like someone may be trying to circumvent the rules. Or many large deposits followed by corresponding withdraws.
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Old 01-28-2011, 12:55 AM
 
16,448 posts, read 10,785,861 times
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In this day of widespread government surveillance (in violation of the Constitution), I would assume all movement of funds to be monitored. I'm fairly confident this post is also monitored.
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Old 01-28-2011, 02:31 PM
 
Location: South Carolina - The Palmetto State
899 posts, read 876,159 times
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Quote:
Originally Posted by 20yrsinBranson View Post
Does anyone here know at what point a bank deposit must be reported to the IRS? I tried to get my friendly neighborhood banker to tell me but they refused to do so.

I heard on the radio that as long as it is below $5,000 you are ok, but I was wondering if anyone would tell me the exact figure.

Thanks.

20yrsinBranson
The two forms you are thinking of are the CTR (Currency Transaction Report) and the SAR (Suspicious Activity Report) - Google either one and you get all the info and what the forms look like - basically, the CTR happens when there is a cash deposit(s) of 10,000 or greater and the SAR starts at 3,000. Most of this is done automatically through whatever software the institution uses.

If you depositing a check over those amounts, it wouldn't apply. It's only for cash deposits.

For why the bank wouldn't discuss it with you in general terms - that is because it is against regulation for them to do so and to prevent the customer from trying to "structure" their deposits to try to avoid those reports (like depositing 9,900 instead of 10,000 or doing smaller deposits adding up to 10,000+ at different branches).

Hopefully that sheds some light on the subject!
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Old 01-28-2011, 04:45 PM
 
Location: SW Missouri
14,851 posts, read 17,990,785 times
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Quote:
Originally Posted by cougfan View Post
The two forms you are thinking of are the CTR (Currency Transaction Report) and the SAR (Suspicious Activity Report) - Google either one and you get all the info and what the forms look like - basically, the CTR happens when there is a cash deposit(s) of 10,000 or greater and the SAR starts at 3,000. Most of this is done automatically through whatever software the institution uses.

If you depositing a check over those amounts, it wouldn't apply. It's only for cash deposits.

For why the bank wouldn't discuss it with you in general terms - that is because it is against regulation for them to do so and to prevent the customer from trying to "structure" their deposits to try to avoid those reports (like depositing 9,900 instead of 10,000 or doing smaller deposits adding up to 10,000+ at different branches).

Hopefully that sheds some light on the subject!
That is very interesting. Since you are so knowledgeable, I have another question.

What about purchasing a prepaid debit card for a large amount of money (thinking specifically Western Union). Do you know if the are they required to report also?

20yrsinBranson
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Old 01-28-2011, 05:31 PM
 
Location: South Carolina - The Palmetto State
899 posts, read 876,159 times
Reputation: 866
Quote:
Originally Posted by 20yrsinBranson View Post
That is very interesting. Since you are so knowledgeable, I have another question.

What about purchasing a prepaid debit card for a large amount of money (thinking specifically Western Union). Do you know if the are they required to report also?

20yrsinBranson
Thank for for the compliment - but I am going on memory - so if anyone sees anything in error I wrote, please correct me.

10,000+ definitely yes for the CTR - no if, ands, or buts.

For the SAR - I don't think that they "have" to do it.

My best guess would be they may do one - I did work at a place where we did Western Union and if you were sending more than 3000.00, we generally did a SAR (to cover our *sses for the State Auditor). In the end the decision was ours to do the SAR over 3000.00 - generally our WU customers were regulars, so if suddenly someone out of the blue showed up with 4,5,or 6000 dollars in bills to send to someone, the SAR would be filled out after the transaction was done.

I know we did Pre-paid cards, but I don't remember any that would hold that high a balance so I can't comment there.

Too many regulations to keep in order!
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Old 01-28-2011, 05:59 PM
 
Location: Syracuse IS Central New York.
8,265 posts, read 2,225,872 times
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Former banker here. Been out of the business over a decade, but the following is what I recall. I think sometimes you're better off just doing the CTR and get it over with with. So many of these go into the government every day, it's just one among many. It's better than drawing attention to yourself by deliberately trying to avoid the reporting requirements.

For a Currency Transaction Report to be generated the threshold is $10,000 in actual hard currency. However, in the age of computers if you deposit or withdraw smaller amounts in the course of a business day and the aggregate is $10,000 then a CTR will still be required.

The Suspicious Activity Report (SAR) was used for any transaction involving actual hard currency over the amount of $3,000. The purpose of this regulation was to prevent a type of money laundering known as "smurfing", moving amounts under the $10,000. I don't if this is still the case, but the SAR is not filed externally anyway, it just remains on file at the bank branch. Sort of a CYA move by the bank.

A lot of people don't realize this but bank personnel MAY opt to document any transaction involving cash that seems suspicious by completing a CTR or SAR. While a customer is aware when a CTR is done because of ID requirements and the fact you need to know what the customer does for a living. I've had CTR's returned for clarification of that information. A SAR can be recorded without that information and as a matter of fact the customer may not even be aware that one was completed.

Also certain businesses that are predominantly cash businesses can request exemption from CTR. As I recall there was a cash limit, if it was exceeded you still had to fill out the CTR.

There was always a lot of confusion concerning CTR's from customers. If there is NO cash involved, and only checks, no CTR. It's called a Currency Transaction Report for a reason.
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Old 01-30-2011, 12:03 PM
 
Location: Tennessee
22,974 posts, read 17,936,384 times
Reputation: 32495
Quote:
Originally Posted by 20yrsinBranson View Post
Does anyone here know at what point a bank deposit must be reported to the IRS? I tried to get my friendly neighborhood banker to tell me but they refused to do so.

I heard on the radio that as long as it is below $5,000 you are ok, but I was wondering if anyone would tell me the exact figure.

Thanks.

20yrsinBranson
All the way back in 1970 when I was a bank teller it was $10,000 so it has to be at least that amount or more now.
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Old 01-30-2011, 12:12 PM
 
Location: Neither here nor there
14,811 posts, read 8,117,275 times
Reputation: 32728
Quote:
Originally Posted by Bideshi View Post
In this day of widespread government surveillance (in violation of the Constitution), I would assume all movement of funds to be monitored. I'm fairly confident this post is also monitored.
There is very little on the Internet that isn't monitored by someone and that includes every single forum. Some forums, such as gun and survivalist forums, likely get extra scrutiny. Assume that everything you post to the Internet will be viewed by a government employee somewhere and, if found to be worthy of followup, you will be placed on some kind of watch list.

As for cash deposits, I believe the law still is that deposits of $10,000 and over must be reported but that banks are encouraged to report any deposit of $3000 to $10,000, as well as suspicious activity, which has already been mentioned.
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Old 01-30-2011, 02:16 PM
 
Location: Inland Empire
2,445 posts, read 2,077,771 times
Reputation: 1869
I move amounts larger than $10K around from account to account and ban to bank frequently and never report anything to anybody.
The bank does keep watch on amounts over $10 k, but you will never hear from anyone unless the activity looks suspisious. If your unemployed and are depositing over $10 k frequently, then you will get some questions asked. Otherwise, if your legit, don't worry about it..
I can prove where the money came from is anyone wants to know. That is the bottom line.
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