Experts! please tell me about CTR report

[TobDog]

Yesterday, I had to take a cash deposit to the bank that totaled over 10K, and they said they needed to fill out a CTR, and got some info, then got all of my personal info including SS#, for those who deal with this, is this (because it will happen on a regular basis) going to affect my possibilities for an audit in the next few years?
I know this sounds petty, but I would prefer not to get onthe side of being investigated on a regular basis, especially if I listed gambling transactions on my taxes, any info would be appreciated if anyone has any experiences/problems/lack of.

Thanks

TobDog

[iluzion]

While I've never had this happen to me, I believe I may be able to answer you. I think it's a one-time thing (what you had to fill out) and I do know a sum of that size going to your bank will cause your bank to file a paper to the IRS. I would think that means your more likely to get audited, but if you report it, why worry?

[Jaquen H'gar]

[ QUOTE ]
Yesterday, I had to take a cash deposit to the bank that totaled over 10K, and they said they needed to fill out a CTR, and got some info, then got all of my personal info including SS#, for those who deal with this, is this (because it will happen on a regular basis) going to affect my possibilities for an audit in the next few years?
I know this sounds petty, but I would prefer not to get onthe side of being investigated on a regular basis, especially if I listed gambling transactions on my taxes, any info would be appreciated if anyone has any experiences/problems/lack of.

Thanks

TobDog

[/ QUOTE ]

CTR is a Cash Transaction Report. It is required by the federal gov't for any cash transaction (withdrawal, deposit, purchase) over $10k within a 24 hour period. This is sent to the Treasury Dept, not the IRS per se (and yes, I realize the IRS is a part of the Treasury Dept). Its purpose is to ferret out money laundering, NOT tax evasion. Usually, these two entities are the converse of each other. Tax evasion is hiding money to avoid taxes. Money laundering is converting illegal hidden money into legal money and paying taxes on it.

The CTR does not automatically go to the IRS. The IRS must come looking for it. That is, Joe Blow's CTRs don't show up on the IRS computer, but if the IRS is doing a pre-audit of Joe Blow, they will request any CTR's. Note, this is all pre-Patriot Act. The Patriot Act cut through a lot of the red tape that was separating the flow of info between gov't orgs so at some point this will likely change and the IRS computer will pull up CTRs on routine filings.

The hassle isn't from the IRS, it will be from the Treasury Dept or some other criminal investigation division. If you are REGULARLY filing CTRs for cash DEPOSITS, these won't be forwarded to the IRS first. First, the T-man will pull your tax returns to determine if there is a legitimate reason for you repeatedly depositing cash (like, do you own a McDonald's?). If there is no clear reason why you should be repeatedly depositing large sums of cash, two words will pop to their mind: drug dealer. If gambling is prominently listed on your return as a major source of income, they will probably think it's 50-50: 50% chance you are a winning gambler, 50% chance you're a dope dealer laundering money as gambling winnings. They will then pull your criminal jacket. If you have one and it lists drugs, you just bought yourself a federal investigation. If no jacket or prior crimes, they can still investigate directly themselves if LARGE amount of money involved or simply send everything to the IRS and tell them to audit you. If your last name is Achmed, I would be expecting the FBI to kick down your door and it's off for a long sunny vacation in Guantanamo.

Incidentally, the CTR is also reviewed in real time or run against a list of wanted criminals apparently. Recently, a wanted suspect who embezzled $80k or so from her employer travelled across the country and was apprehended after a CTR was filed when she paid cash for a $14k mink coat in her new location.

You wrote: [ QUOTE ]
I would prefer not to get onthe side of being investigated on a regular basis

[/ QUOTE ]

You won't be and this I speak from experience. All you have to do is come through the first investigation/audit with flying colors and they won't bother you again for years. IRS agents are rewarded for recovering missed income but only have a limited amount of time. Therefore, they go after the highly likelies. If you've already passed once, you are moved to the low likely list.

[TobDog]

[ QUOTE ]
I would think that means your more likely to get audited, but if you report it, why worry?

[/ QUOTE ]

My concern is that the $ is going into someone elese bank, not mine, not my $, yet they gather all my information, so I have nothing to decalre from that transaction.

[Guthrie]

I used to be in the auction business and deposited millions of dollars in cash over a period of about five years, often shoved into the night box. The largest single cash deposit was over $100,000. I signed a blanket CTR once and never heard another peep. I only got audited once and that was because I missed an interest 1099 for like thirty bucks.

I have also made large cash deposits of other people's money into other people's bank accounts, signed the CTR and never heard anymore about it.

Things have probably tightened up since 9/11, but if you don't have anything to hide, then you probably don't have anything to worry about.

[radek2166]

[ QUOTE ]
While I've never had this happen to me, I believe I may be able to answer you. I think it's a one-time thing (what you had to fill out) and I do know a sum of that size going to your bank will cause your bank to file a paper to the IRS. I would think that means your more likely to get audited, but if you report it, why worry?

[/ QUOTE ]


Sorry to say this. Everytime You have a transaction over 10k you get to fill one out.

[TobDog]

I asked the regional manager about it today, he said he was depositing 25k/day while working in NY a while ago, he said its really a DEA thing, if the business gets looked at, then they will look at who made the deposits.

The employee at B of A said once my info is in their computer, Im in there for furutr, they just get my name(probably look at ID) and select it, no more filling out, so I guess my concern was just that, not a big worry, but I do thank everyone who chimed in here too.

TobDog