Does having large amounts in your bank account get reported by banks?

[Python49]

I had always read that banks report people who have made transactions over 10k... but what about someone whose bank account is constantly growing but all transactions are under 10k? My account is getting biger and the larger it gets the more worried I am that a bank will just report me. I'm a student so I don't have money coming out, just money coming in. What if someone had a bank account where they just had 300,000 sitting in the bank account and none of it being spent... do they get reported? I don't have 300k but just giving an example. That much money just sitting in a bank account certainly gets noticed I assume?

[Bradyams]

I thought that transactions over $1k were reported.

I gather the reason you are concerned is for income tax purposes?

[BigBiceps]

The amount of interest your account earns gets reported to the IRS.

[edfurlong]

If you are trying to avoid taxes a US bank account may not be the way to go. Just a thought.

[XChamp]

Here's an idea: pay your taxes.

That way you don't have to worry about getting caught for the rest of your life and *gasp* you contribute to your town, state, and country at the same time.

[Python49]

I'll be paying taxes, doesn't change the question of this thread though.

[XChamp]

I don't understand why you would care about the answer to this question unless you were evading taxes.

[Python49]

Because I was told that deposits over 10k got reported but im curious to know what happens if you just have a bank account with lots of money in it if that gets reported too. I mean, just because i'm reporting doesnt mean I want to increase my chance of getting audited. I'm only reporting my net anyway because that's what my accountant suggested (yes, i know).

[AngusThermopyle]

They report any interest earned (and from that the IRS can approximate how much is in there).
They do not report transactions ( the $10K reporting limit is for cash transactions ) routinely. If you are under investigation and they have a warrant.
Why would they want to look at your ass-
ets?

[Python49]

Also, soemone who makes deposits their whole life from savings at their waitress job, mowing lawns, birthday money from family, etc... this would all build up into a large bank acount too. This means someone who has been saving money from all this stuff is more likely to get reoprted/audited too?

[benfranklin]

Banks generally do not report balances, they report certain transactions. They are required to report cash transactions over $10,000. They are also required to report suspicious cash transactions, like a series of cash transactions just under $10,000 that appear to be trying to avoid being reported.

They also report any interest paid. So unless you have your money in an account that does not pay interest, the feds are going to be able to tell what your balances are by the amount of interest paid.

[Sniper]

Python,

Banks report any suspicious activity. Having a large balance in a bank account isn't necessarily suspicious.

[Python49]

Ok, I see.

I was wondering about people who have life savings in their bank account just from mowing lawns, tips, presents from other people.. and it was all just in their bank account. Figured those people would be subject to getting audited just like poker players. I don't want to get audited because I am not reporting how they want you to... because I don't have records for the first half of my play and my accountant just suggested reporting the net. If they see that I made a certain amount of interest on the year, but i'm a student, I wonder what are the chances i'm in trouble.

[Art Vandelay]

I'm sorry, I can't answer your post as I find myself just staring at your icon.

[BottlesOf]

$300K is jack-[censored] in the grand scheme of things.

[XChamp]

Whoever told me to mind my business:


Actually it is my business if he is a US citizen. Every dollar he doesn't pay is a dollar more the US tax payers now pick up for him and I am a US tax payer Poker players who evade taxes just make us all look more like societal leaches. I don't like it when people call me a leach because they assume I don't pay taxes.

If every poker player paid taxes on his winnings don't you think the government would be a lot more reasonable when it came to tax issues?

I get pissed off at people who don't pay taxes just like I get pissed off at people who lie/cheat/steal even when it doesn't directly affect me. If everyone was honest can you imagine how much less taxes you would pay? The cut in insurance costs would tremendous. There would be no more frivolous law suits. I could go on.

However, he is paying his taxes, so I don't have a problem.

[FishNChips]

[ QUOTE ]
I had always read that banks report people who have made transactions over 10k... but what about someone whose bank account is constantly growing but all transactions are under 10k? My account is getting biger and the larger it gets the more worried I am that a bank will just report me. I'm a student so I don't have money coming out, just money coming in. What if someone had a bank account where they just had 300,000 sitting in the bank account and none of it being spent... do they get reported? I don't have 300k but just giving an example. That much money just sitting in a bank account certainly gets noticed I assume?

[/ QUOTE ]

OMG OMG OMG... I'm getting "reported" and its going to go on my PERMANENT record! Nooooooo!!!!!!!

Dude .. relax. If you're planning to report earnings and pay taxes on it then you have nothing to worry about. As said above, banks are required to report "suspicious" activity including ANY cash transaction over 10k. They are reported to protect against money laundering and other nefarious activity.

You're not going to be "reported" just because you have a big bank account. I'm not sure why you're so worried about this. You seem to be freaking out over nothing.

On the other hand, I'm not sure I want you to stop posting because having that avatar in 4 different places on my screen is just plain wonderful!

FishNChips

[cokehead]

[ QUOTE ]
Whoever told me to mind my business:

Actually it is my business if he is a US citizen. Every dollar he doesn't pay is a dollar more the US tax payers now pick up for him

[/ QUOTE ]
um no. the IRS doesn't have a quota of how much tax they must collect, so no one else picks it up. the government just gets less money.

[ QUOTE ]
and I am a US tax payer Poker players who evade taxes just make us all look more like societal leaches. I don't like it when people call me a leach because they assume I don't pay taxes.

If every poker player paid taxes on his winnings don't you think the government would be a lot more reasonable when it came to tax issues?


[/ QUOTE ]
um no I don't think so, and I'm not sure why you think so. in the larger scheme of things, the government is much more concerned with other tax revenues. Not really sure why people paying tax on poker income would make the government more 'reasonable' on other tax issues.

[ QUOTE ]


I get pissed off at people who don't pay taxes just like I get pissed off at people who lie/cheat/steal even when it doesn't directly affect me. If everyone was honest can you imagine how much less taxes you would pay? The cut in insurance costs would tremendous. There would be no more frivolous law suits. I could go on.



[/ QUOTE ]
what does paying your taxes have to do with insurance and/or
frivolous law suits?

wow.

[Python49]

[ QUOTE ]
Dude .. relax. If you're planning to report earnings and pay taxes on it then you have nothing to worry about.

[/ QUOTE ]
Well I still could end up getting reported and audited and then fined for not reporting correctly. That's something to worry about I believe. And for the 50% of this forum that doesn't report.... if their money is in their bank account I don't see why they view this as nothing to worry about. Alot of people think the IRS has no way of knowing if PP doesnt report you... but if the bank is reporting your interest made or the bank reports you, seems to me theres some risk involved. I'm not even sure if my account earns interest, it's in my checking account not in my savings account. Guess i'm just a worry wart after hearing about the consequences of being audited.

[Subfallen]

I'm pretty sure you're thinking about cash transactions. It would be somewhat overwhelming and ridiculous for banks to report every >$10k transaction made every day, if you think about it.

[ QUOTE ]
Whoever told me to mind my business:


Actually it is my business if he is a US citizen. Every dollar he doesn't pay is a dollar more the US tax payers now pick up for him and I am a US tax payer Poker players who evade taxes just make us all look more like societal leaches. I don't like it when people call me a leach because they assume I don't pay taxes.

If every poker player paid taxes on his winnings don't you think the government would be a lot more reasonable when it came to tax issues?

I get pissed off at people who don't pay taxes just like I get pissed off at people who lie/cheat/steal even when it doesn't directly affect me. If everyone was honest can you imagine how much less taxes you would pay? The cut in insurance costs would tremendous. There would be no more frivolous law suits. I could go on.

However, he is paying his taxes, so I don't have a problem.

[/ QUOTE ]

The money we all use to play with has been taxed once already when we earned it. Why the government thinks they should get a hand in any moneys that I may win or earn (especially when I never get calls from the IRS saying "Hey, here's $1k back of the $3k you lost in Vegas last weekend") is beyond me.

If we assumed a closed system where each player reports every single cent of his earnings for tax purposes, the government would eventually have every - single - cent of it.

Yeah, real fair. I'm all for most other kinds of taxes in the country, but keep your damn hands off of money that you've already dipped into.

[ QUOTE ]
Well I still could end up getting reported and audited and then fined for not reporting correctly. That's something to worry about I believe.

[/ QUOTE ]
Barry Greenstein once got in trouble with the IRS because he was making bank deposits just under the reporting limit. He wrote about it in his book. The crime is called "structuring."

As long as you're not making repeated deposits at just under $10k, or a series of deposits close together adding up to over $10k, there's nothing you should have to worry about there.

And the correct answer for the reporting is that YOU are responsible for reporting cash payments over $10k. It's form 8300, you can download it from irs.gov.