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Cash deposit or withdrawl & reporting to IRS

 
 
sale-365187030@craigslist.org
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      07-05-2007, 03:44 AM
I know that Bank of America or Washington Mutual automatically report to
IRS if cash deposit is at least $10,000. How about withdrawl?
If u withdrawl more than $10,000 at one time, will it get reported to
IRS? Does it matter what city or state you're in? I want to buy a used
car & this guy wants all cash in amount of $14,000. How about if I were
to write a personal check in that amount? Coincedentally that's exactly
what I have in my check account, $14,000.
Is there a limit on how much I can withdrawl at one time either by cash
or personal check from my personal checking account if I had for example
$100,000 without being reported to IRS?

Thanks in advance.

 
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Paul Thomas, CPA
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      07-05-2007, 01:07 PM

<(E-Mail Removed)> wrote
>I know that Bank of America or Washington Mutual automatically report to
> IRS if cash deposit is at least $10,000. How about withdrawl?



Yes. Any cash transaction, or series of cash transactions, gets reported.



> If u withdrawl more than $10,000 at one time, will it get reported to
> IRS?



Yes.




> Does it matter what city or state you're in?



Since it's one of the items requested on the form, then it matters.




> I want to buy a used car & this guy wants all cash in amount
> of $14,000. How about if I were to write a personal check
> in that amount?




Checks aren't cash.




> Coincedentally that's exactly what I have in my check account, $14,000.
> Is there a limit on how much I can withdrawl at one time either by cash
> or personal check from my personal checking account if I had for example
> $100,000 without being reported to IRS?





$10,000 in cash, either deposited or withdrawn, gets reported. You can't
break the amount into smaller amounts and slip under the radar, as the
teller would pick up on the total of two $7000 cash withdrawals and the
report would be prepared and filed.




--
Paul A. Thomas, CPA
Athens, Georgia












 
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sale-365187030@craigslist.org
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      07-05-2007, 02:14 PM
Thanks Paul. Just to confirm, if I write a personal check from my personal
checking account(Bofa or Wamu) in the amount of $14,000 to the seller, IRS
won't know about it or bank won't report to IRS? Just for curiosity, what if
the personal check amount is much more than $14,000? Does it make any
difference in the amount?

Thanks again


"Paul Thomas, CPA" wrote:

> <(E-Mail Removed)> wrote
> >I know that Bank of America or Washington Mutual automatically report to
> > IRS if cash deposit is at least $10,000. How about withdrawl?

>
> Yes. Any cash transaction, or series of cash transactions, gets reported.
>
> > If u withdrawl more than $10,000 at one time, will it get reported to
> > IRS?

>
> Yes.
>
> > Does it matter what city or state you're in?

>
> Since it's one of the items requested on the form, then it matters.
>
> > I want to buy a used car & this guy wants all cash in amount
> > of $14,000. How about if I were to write a personal check
> > in that amount?

>
> Checks aren't cash.
>
> > Coincedentally that's exactly what I have in my check account, $14,000.
> > Is there a limit on how much I can withdrawl at one time either by cash
> > or personal check from my personal checking account if I had for example
> > $100,000 without being reported to IRS?

>
> $10,000 in cash, either deposited or withdrawn, gets reported. You can't
> break the amount into smaller amounts and slip under the radar, as the
> teller would pick up on the total of two $7000 cash withdrawals and the
> report would be prepared and filed.
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia


 
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Paul Thomas, CPA
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      07-05-2007, 02:53 PM

<(E-Mail Removed)> wrote
> Thanks Paul. Just to confirm, if I write a personal check from my
> personal
> checking account(Bofa or Wamu) in the amount of $14,000 to the seller, IRS
> won't know about it or bank won't report to IRS?




Checks are not cash......only cash gets reported.



> Just for curiosity, what if the personal check amount is
> much more than $14,000? Does it make any
> difference in the amount?





The amount of the check doesn't matter.




--
Paul A. Thomas, CPA
Athens, Georgia



 
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      01-08-2009, 02:55 PM
what if the cash deposits were done in smaller amounts, over a longer time period. are they reported?

I sell antiques and other items items from home, and routinely make cash deposits of under 3k to my checking account; never more than once a week, and usually every couple weeks. Coincidentally, I also write checks out routinely to purchase other items, so theres never a balance in the account of more than 1-2k....never even close to a balance of 10k. would this trigger a flag for reporting to the IRS?

I just want to make sure that I'm not reporting inaccurate on my taxes.
 

Last edited by al660105; 01-08-2009 at 03:01 PM..
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Junior Member
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      07-25-2011, 04:17 AM
If any bank such as fifth third bank place holds on 10,000 dollar check deposited in your account will it still be available within a few days in your account?
 
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      07-25-2011, 10:10 PM
A little more on this: if you break up the transaction to avoid the bank reporting it, that is a crime under the anti-money laudering laws. So don't do that!
 
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