IRS tracking of deposits/cashouts/withdrawals

[meriwether]

After some searching, I couldn't find an answer to this question.

Does the IRS keep track of incoming and outgoing cash to and from your bank account?

I always thought they did, but only for amounts over $20,000.

I recently heard they will now also track any online ACH over $800 from gaming sites, although this seems ludicrous to me.

Anyone know the answer to this?

[Voltron87]

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Does the IRS keep track of incoming and outgoing cash to and from your bank account?

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if you get audited, they will find everything.

so if you dont report a couple <10K transactions, you will mostly likely get away with it, unless you get audited. and then you will be over a barrel. neteller transactions can be seen too.

pay your taxes. the risk reward ratio of not doing so is bad.

[uncleshady]

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Does the IRS keep track of incoming and outgoing cash to and from your bank account?

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I hope so, because I haven't been!

[Voltron87]

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Does the IRS keep track of incoming and outgoing cash to and from your bank account?

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I hope so, because I haven't been!

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i think banks try to keep track of this stuff. they have records that go back at least a couple months. at least.

[meriwether]

I didn't say anything about evading taxes. I'm just looking for some objective information about the issue.

So you're saying banks keep records, but the IRS doesn't?

[Voltron87]

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I didn't say anything about evading taxes. I'm just looking for some objective information about the issue.

So you're saying banks keep records, but the IRS doesn't?

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my comment about banks was sarcastic.

no, the IRS is not going to keep a record of what you do and tell you how much you owe. if you get audited though, they will find everything. they just dont have the manpower to do it for everyone.

well if you cash a check and never deposit it, i don't think it can be found out if your audited right?

[Guthrie]

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well if you cash a check and never deposit it, i don't think it can be found out if your audited right?

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Can it be found out? Absolutely.
Will it be found out? Maybe.

[Smackdab]

Banks are required to report any transactions that exceed 10K. It doesn't stop there though. They are also required to report "suspicious" activity. So to the poster who asks about cashing a check this is not fail safe if you are trying NOT to report taxes.

For example:
If you cash a check for 2K every week they may deem this suspicious activity and file a report. Even if you are able to skate by this way and somewhere you want to buy that dream house you've been wanting using the cash you've been ratholing as a downpayment you will have no way of showing the mortgage company where this sudden windfall came from.

Try 'splaining that one Lucy.

Pay your taxes like the rest of us patriotic schmucks. Save you alot of headaches in the long run.

[meriwether]

Smack, where'd you hear 10K? Is this listed somewhere?

[WDC]

I am pretty sure that they only have to report cash transactions over 10K. At least it used to be that way.

[Recliner]

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i think banks try to keep track of this stuff. they have records of every transaction that they have EVER processed.

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[Smackdab]

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Smack, where'd you hear 10K? Is this listed somewhere?

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I have to admit I don't know for a fact that is always what I had heard. So take that bit with a grain of salt. The part about reporting of suspicious activity I was told by a banker/friend of mine who was cashing checks for me when I went through a divorce and didn't want my poker winnings to show up in my bank account as my earnings took a turn for the better after Idumped that *ahem* nice lady I was married too.

FWIW....I did deposit the cash after the divorce and pay taxes on them. So I remained patriotic and did my duty while also giving the ex a final tryst by SIIHP. /images/graemlins/grin.gif

[maxpower72]

I know that banks, casinos etc. had to fill out LCT's (Large Cash Transactions) for anything over 10 000. I believe but I am not sure that the number has since been reduced to 5000 now, I am sure one of our members who is currently employed in the casino or banking idustry will be able to give us the new number.

[Jimbo]

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I know that banks, casinos etc. had to fill out LCT's (Large Cash Transactions) for anything over 10 000. I believe but I am not sure that the number has since been reduced to 5000 now, I am sure one of our members who is currently employed in the casino or banking idustry will be able to give us the new number.

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Currency Transaction Report IRS (CTR) (http://www.irs.gov/compliance/enforcement/article/0,,id=112228,00.html)

[BigBaitsim (milo)]

Just pay your taxes and don't worry about it.