Bank Cash Deposits
Mar 25, 2015, 6:03 pm
#16
Join Date: Aug 2011
Posts: 866
Just to add some clarity. You have nothing to worry about if they file this form. If you structure your activities to avoid them filling out the form (for example by making two $5000 deposits) you could have issues. The odds make this unlikely but the smart move is to do the $10k deposit and not worry about the form.
Mar 25, 2015, 7:02 pm
#17
Join Date: Oct 2014
Location: LAC
Programs: Regal Crown Club
Posts: 488
Wasn't there a rule that you get some kind of 1099 form at the end of the (tax)year if you deposited more than $20k AND had more than 200 deposit transactions at one single institution? I keep my deposits split up between 2 banks so neither of them receives more than $20k a year. Although it probably wouldn't even matter since I make a lot less than 200 deposits...
Mar 25, 2015, 7:34 pm
#18
Join Date: Jul 2009
Programs: HH Gold, Marriott Gold
Posts: 263
Wasn't there a rule that you get some kind of 1099 form at the end of the (tax)year if you deposited more than $20k AND had more than 200 deposit transactions at one single institution? I keep my deposits split up between 2 banks so neither of them receives more than $20k a year. Although it probably wouldn't even matter since I make a lot less than 200 deposits...
Mar 26, 2015, 7:48 am
#19
Join Date: May 2014
Posts: 466
Just to add some clarity. You have nothing to worry about if they file this form. If you structure your activities to avoid them filling out the form (for example by making two $5000 deposits) you could have issues. The odds make this unlikely but the smart move is to do the $10k deposit and not worry about the form.
Mar 26, 2015, 8:11 am
#20
Join Date: Oct 2010
Location: BOS
Posts: 814
I split up my deposits because AFT only lets me withdraw a certain amount per day, and I'm not going to hold onto the cash for several days just to make a deposit of >$10k. I deposit it at the first convenient bank where I have an account. Depending on where I withdraw, it might be different banks.
Unlawful structuring is when you get $25,000 in cash from selling something but to avoid reporting you deposit $9,500 / $9,500 / $6,000 as separate transactions vs. just depositing $25,000 at once.
Mar 26, 2015, 2:54 pm
#21
Join Date: Jun 2014
Posts: 106
No such thing as unlawful structuring. What he is doing isn't structuring. However, depending on the circumstances it could appear to be structuring.
Mar 26, 2015, 3:11 pm
#22
Join Date: Feb 2012
Location: LAX
Programs: AA, TY, UR, UA, US, WN, MR, SPG
Posts: 1,453
Just a sidenote. I closed my business account at First Interstate in Montana and moved to Glacier Bank due to First Interstate actually charging a fee for each $100 in cash deposits for handling the cash!!! My new bank was happy to take my cash without any fees. I had never heard of such a thing!!
BTW, another business owner friend kept making $9500 cash deposits at their bank, and they had a knock on the door by 2 men with badges wanting to know why..... They told them that they did not think it was fair to have to fill out paperwork for each large deposit.
Cheers!
JudyJFLA
BTW, another business owner friend kept making $9500 cash deposits at their bank, and they had a knock on the door by 2 men with badges wanting to know why..... They told them that they did not think it was fair to have to fill out paperwork for each large deposit.
Cheers!
JudyJFLA
2) It is absolutely fair to fill out a CTR when depositing >$10K cash. Banks are responsible for the accounts they open and bank employees are responsible for the transactions they process. If it's "inconvenient" to deposit loads of cash as a business owner, then sign up for Square. And if you structure said deposits long-term, you better expect the tellers/managers are heavily flagging your account with SARs, so don't be shocked when those IRS agents come knocking.
Mar 26, 2015, 3:49 pm
#23
Join Date: Aug 2011
Posts: 866
Quote:
Originally Posted by Father-of-3
Just to add some clarity. You have nothing to worry about if they file this form. If you structure your activities to avoid them filling out the form (for example by making two $5000 deposits) you could have issues. The odds make this unlikely but the smart move is to do the $10k deposit and not worry about the form.
I split up my deposits because AFT only lets me withdraw a certain amount per day, and I'm not going to hold onto the cash for several days just to make a deposit of >$10k. I deposit it at the first convenient bank where I have an account. Depending on where I withdraw, it might be different banks.
Originally Posted by Father-of-3
Just to add some clarity. You have nothing to worry about if they file this form. If you structure your activities to avoid them filling out the form (for example by making two $5000 deposits) you could have issues. The odds make this unlikely but the smart move is to do the $10k deposit and not worry about the form.
I split up my deposits because AFT only lets me withdraw a certain amount per day, and I'm not going to hold onto the cash for several days just to make a deposit of >$10k. I deposit it at the first convenient bank where I have an account. Depending on where I withdraw, it might be different banks.
I'm not a lawyer but I think you are fine. You never actually have $10k in cash, and saving up to exceed seems silly. Now if you got cash all month and then spread your $25k around you would be inviting trouble.