# News, If You Deposit a Lot of Cash, Does Your Bank Report It to the Government?



## Robert59 (Jan 16, 2020)

DEPOSITING A BIG AMOUNT of cash that is $10,000 or more means your bank or credit union will report it to the federal government. The $10,000 threshold was created as part of the Bank Secrecy Act, passed by Congress in 1970, and adjusted with the Patriot Act in 2002. 

https://money.usnews.com/banking/ar...sh-does-your-bank-report-it-to-the-government


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## C'est Moi (Jan 17, 2020)

Yes, of course they do.   You have to account for where it came from so they can make you pay taxes if you owe them.


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## OneEyedDiva (Jan 17, 2020)

Also note that if there's suspicion that an individual sought to avoid having funds reported to the IRS by splitting up a deposit of $10,000 or more, that might be considered fraud. That is explained in this article under Structuring.
https://pocketsense.com/there-limit-amount-money-can-deposited-once-11146.html


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## toffee (Jan 17, 2020)

not our banks over here - the more you put in the more they become your friends …...….lol
and no they dont report the account unless--- there was a big problem !


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## Camper6 (Jan 17, 2020)

It's a watch on money laundering.

There's a sign at our casino that doesn't say that but it says large deposits will be disclosed.


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## squatting dog (Jan 17, 2020)

Well, there's one problem I'll never have.  Large amounts of cash that is.


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## applecruncher (Jan 17, 2020)

Aside from the tax issue, large amounts of cash can raise suspicion of illegal activity (drugs, etc.).


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## StarSong (Jan 17, 2020)

People awash in cash spend a lot of time and money working out how to launder it to avoid government attention.      

Can't imagine many legitimate reasons for having deposits of $10K+ in cash on a regular basis.


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## Aunt Bea (Jan 17, 2020)

I don't mind the tracking/reporting of cash transactions but it does bother me when people who hold and use cash are immediately suspected of criminal activity.


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## retiredtraveler (Jan 17, 2020)

Aunt Bea said:


> I don't mind the tracking/reporting of cash transactions but it does bother me when people who hold and use cash are immediately suspected of criminal activity.


I see the point, but as has been discussed on another thread, cash is not only going away for so many people, some stores won't even accept it. So, large amounts of cash in an 'electronic age' is suspicious. I, for one,  use more cash in a year going to a local barber for haircuts than everything else combined.


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## jujube (Jan 17, 2020)

Well, a couple of years go I had the devil of a time depositing $121 in $1 bills at the bank.  They wanted me to show my drivers license, which I had unfortunately left at home and the fact that I had my checks, my voters registration, several charge cards, with me.  Finally I found my passport in my purse and it was OK.

They explained that they had to make sure it wasn't drug money.  Drug money?  $1 bills? What did they think I was doing......dealing baby aspirin down at the day care center?


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## StarSong (Jan 17, 2020)

retiredtraveler said:


> I see the point, but as has been discussed on another thread, cash is not only going away for so many people, some stores won't even accept it. So, large amounts of cash in an 'electronic age' is suspicious. I, for one,  use more cash in a year going to a local barber for haircuts than everything else combined.


I've yet to shop in a store that doesn't accept cash.  Not saying they don't exist, just saying they're rare.


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## Liberty (Jan 17, 2020)

StarSong said:


> People awash in cash spend a lot of time and money working out how to launder it to avoid government attention.
> 
> Can't imagine many legitimate reasons for having deposits of $10K+ in cash on a regular basis.


Maryjane states really do have issues. Store owners have been beaten and robbed.  They are seeking to come up with alternatives to the large daily cash transactions:

https://www.mcclatchydc.com/news/nation-world/national/article198941964.html


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## C'est Moi (Jan 17, 2020)

toffee said:


> not our banks over here - the more you put in the more they become your friends …...….lol
> and no they dont report the account unless--- there was a big problem !


Apparently not.   https://www.thisismoney.co.uk/money/saving/article-2551823/Why-banks-wont-let-pay-cash-account.html


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## CarolfromTX (Jan 17, 2020)

DH used to travel on business, sometimes for as long as 3 weeks in Asia or Europe. His expense reports occasionally resulted in getting checks for over $10,000. We had to establish a "personal relationship" with our banker. DH just had to explain where the money was coming from and why and after that he didn't have a problem.


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## Lethe200 (Jan 17, 2020)

As this rule has been in effect in the USA for 50 yrs it shouldn't be a surprise to anyone. 

Unfortunately the rise in digital currencies, which are unregulated by any country, have become the payment medium of choice for the illegal drug industry and cartels.


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## gennie (Jan 17, 2020)

jujube said:


> Well, a couple of years go I had the devil of a time depositing $121 in $1 bills at the bank.  They wanted me to show my drivers license, which I had unfortunately left at home and the fact that I had my checks, my voters registration, several charge cards, with me.  Finally I found my passport in my purse and it was OK.
> 
> They explained that they had to make sure it wasn't drug money.  Drug money?  $1 bills? What did they think I was doing......dealing baby aspirin down at the day care center?



I apologize in advance.  My  mind is quirky today.  

The only reason I can think of for having that many one dollar bills to deposit is ....................  it's g-string money after a good night at the strip bar..


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## jujube (Jan 17, 2020)

gennie said:


> I apologize in advance.  My  mind is quirky today.
> 
> The only reason I can think of for having that many one dollar bills to deposit is ....................  it's g-string money after a good night at the strip bar..
> [/QUOT
> The only way I'd make that kind of money in a strip bar is if I charged everyone a dollar for me to put my clothes back ON again...…..  The shape I'm in, they'd be hard put to even _find _my G-string. I'm not even sure you'd call it a G-string. It would be more like an XXXL-string.


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## applecruncher (Jan 17, 2020)

Actually, drug dealers don't deposit money into a checking or savings account. But they 'might' put big neat stacks into large safety deposit boxes.  Remember in Breaking Bad the Feds caught a guy doing exactly that?


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## Butterfly (Jan 17, 2020)

Lethe200 said:


> As this rule has been in effect in the USA for 50 yrs it shouldn't be a surprise to anyone.
> 
> Unfortunately the rise in digital currencies, which are unregulated by any country, have become the payment medium of choice for the illegal drug industry and cartels.



Yup -- the rule has been around forever.


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## Gardenlover (Jan 17, 2020)

Give $9999 as often as possible...






To me!  

I have glorious plans.


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## Ladybj (Jan 17, 2020)

toffee said:


> not our banks over here - the more you put in the more they become your friends …...….lol
> and no they dont report the account unless--- there was a big problem !


If I ever come into a Large amount of money.. I am moving to your State
lol..


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## Ladybj (Jan 17, 2020)

jujube said:


> Well, a couple of years go I had the devil of a time depositing $121 in $1 bills at the bank.  They wanted me to show my drivers license, which I had unfortunately left at home and the fact that I had my checks, my voters registration, several charge cards, with me.  Finally I found my passport in my purse and it was OK.
> 
> They explained that they had to make sure it wasn't drug money.  Drug money?  $1 bills? What did they think I was doing......dealing baby aspirin down at the day care center?


Dealing baby aspirin... ROFL..


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## Lakeland living (Jan 18, 2020)

Up here the bank reports anything above $4000.oo. That is going in and coming out.


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## Ken N Tx (Jan 18, 2020)

Gardenlover said:


> Give $9999 as often as possible...
> 
> 
> 
> ...


Banks report individuals who deposit $10,000 or more in cash. And if an individual makes cash deposits over several days that are less than, but still add up to, $10,000, that person will be reported


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## Gardenlover (Jan 18, 2020)

And it will be on their permanent record.


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## Gardenlover (Jan 18, 2020)

So, what actually happens when they report the transaction?


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## Liberty (Jan 19, 2020)

Gardenlover said:


> So, what actually happens when they report the transaction?


We had a medical equipment business in the 80's an 90's and sometimes were  paid in cash for equipment so we had to bone up on this.  Seems its the "multiple" deposits that is often tracked...whether its 5 grand or 10 grand or whatever.  The bank reports it to the Feds and the Feds want to follow it and determine where it went.  

https://www.businessinsider.com/the-irs-can-seize-your-cash-through-forfeiture-2014-10


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## IrisSenior (Jan 19, 2020)

So happy I don't have to report my over $10,000 in my bank. My financial manager will decide what needs to be reported. I also have tax free savings account (TFSA) and I don't report it to the government. Really, I can't imagine having my money tracked. Now that I think of it; of course, when I do my taxes online the $$ I received from the gov't automatically gets declared (saves me worrying about it).


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## Gardenlover (Jan 19, 2020)

Liberty said:


> We had a medical equipment business in the 80's an 90's and sometimes were  paid in cash for equipment so we had to bone up on this.  Seems its the "multiple" deposits that is often tracked...whether its 5 grand or 10 grand or whatever.  The bank reports it to the Feds and the Feds want to follow it and determine where it went.
> 
> https://www.businessinsider.com/the-irs-can-seize-your-cash-through-forfeiture-2014-10


Thanks for the link.


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