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

Python49 · #1 10-19-2005, 04:44 PM

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 · #2 10-19-2005, 04:46 PM

I thought that transactions over $1k were reported.

#3 10-19-2005, 04:47 PM

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

BigBiceps · #4 10-19-2005, 04:47 PM

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

edfurlong · #5 10-19-2005, 04:49 PM

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

XChamp · #6 10-19-2005, 04:49 PM

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 · #7 10-19-2005, 05:03 PM

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

XChamp · #8 10-19-2005, 05:08 PM

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

Python49 · #9 10-19-2005, 05:15 PM

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 · #10 10-19-2005, 05:16 PM

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?