Why am I not supposed to cash out over 10k?

[Emoney]

not that i'm about to or anything, but for future reference. i remember some stuff on this a little while ago. what happens if you do so?

[Nepa]

Go ahead raise flags with the feds.

[J.R.]

spontaneous combustion.



You might also increase your chances of an audit, and even though you pay your taxes and keep meticulous records /images/graemlins/laugh.gif that is still quite a headache /images/graemlins/tongue.gif.

[Emoney]

is it an automated response? as in withdraw 10k, receive notice from government. or does it take someone noticing and caring?

is it a hard and fast number @ 10k? or would 9k do the same thing? 11,12 or 15?

[J5983]

They do notice if you transfer $9990 multiple times, too.

[Blarg]

You probably want to watch out about giving an appearance of doing anything wrong, too. Being "clever" can backfire severely.

Mafia dudes have long spoken in codes both when they chat at home and over the phone. They've found out that doesn't protect them from conspiracy charges, but actually gives credence to them. People wouldn't be talking in code unless they were conspiring, the logic goes, and juries buy it pretty easily.

Not that the mafia types have much choice but to try to mask their activities, but obvious attempts to do so can be a devastating counter to your claims that "I wasn't doin' nuthin!"

You probably don't want to be lumped in with those guys in the minds of the IRS or law enforcement.

[benfranklin]

Banks in the US are required to report cash transactions of $10,000 or more. I believe they are also required to report any suspicious cash transactions, like if someone deposits $9,000 several times, appearing to be trying to avoid the $10K trigger.

Casinos like Party and bankers like Neteller are not in the US, so they are not subject to US reporting requirements. The question is whether US banks have to report electronic transfers. (Anyone know about reporting requirements?) If nothing else, the transfer to your bank account would be on your bank statements if you ever got audited by the IRS.

[skaboomizzy]

the $10,000 figure is for cash only. If you withdraw or deposit a total of $10K or more in the space of a day, in one single or multiple transactions, the bank is required to fill out a CTR (Currency Transaction Report).

This applies ONLY to cash. Neteller, etc are treated like electronic transfers... much like direct deposit of your paycheck, or a PayPal payment that you transfer to your account. Many banks have customers that transact over $3-4M in checks a day, and as far as I know there's no additional paperwork required.

I think you'd draw the eye of the IRS more with a series of $9900 electronic payments/deposits than you would with a single payout of $45K or something.

[bunky9590]

Any transactions above 10,001 dollars is automatically reported to the IRS.

I'm not sure about foreign sites but as soon as it his a US Bank it is flagged and tagged.

Keep it at 9500 and you'll be good.

[DocMartin]

One of the standard questions now when you cross the border from Canada to the US is "Are you carrying more than $10,000 in cash". The standard answer of course is "I wish!".

[pretender2k]

working in a casino I have some experience. My advice never transfer $10,000 to an account in a banking day. And don't forget anything else that might be coming like automatic deposit of a paycheck. Several deposits that sdd up to $10,000 will hit the requirement. I would personally wait a couple days in between transactions because a $9,000 deposit everyday for 2 or 3 days may set off a suspicious activity form.

[LikesToLose]

I was talking with a co-worker who was taking cash on vacation with him. He was transfering electronically over $10k from one account to another. He misclicked on the website and put it into the wrong account.

The next day, he transfered it again to the correct account, then attempted to cash it out.

It triggered a Federal alert of some sort. Every account that he or his wife had was immediately frozen. I'm sure that his friends and family's accounts were looked at as well.

I know that governments around the world are watching money movements much closer due to terrorism. It took 2 days and a lot of people looking into his business to clear it up.

There is much more than the IRS to worry about