? asked in Business & FinanceTaxesUnited States · 1 decade ago

If I deposit several small checks that add up over 15,000, will irs still be informed?

All the checks are from the same person, out of personal debt. I rented my cousin an apartment and agreed to receive payment when she was able to. She gave me 4 checks totaling that amount. 1 per day (dated for next week). Thanks !

5 Answers

  • Favorite Answer

    Check deposits are not reported as cash transactions regardless of the amount. The CTR filing requirement of $10k for cash transactions (including aggregate transactions over a short period of time -- that's what tripped up Eliot Spitzer) applies to the green (or pink or yellow these days) folding stuff, not to check payments.

    On the other hand, transactions of ANY amount that depart from what is "normal" for your banking activities can be reported on a SAR or Suspicious Activity Report. And while you may be made aware of a CTR if one is filed, you generally will NOT be notified of a SAR if one is filed.

    Most banks use sophisticated software to flag activity as "suspicious." Normally those are reviewed by a human before a SAR is generated. I used to work in the banking industry and we'd see SAR flags for things as innocuous as children making small cash deposits from a lemonade stand at 2 or 3 different branches. We didn't generate a SAR in those cases. On the other hand, the elderly gentleman who decided to supplement his retirement income by kiting checks (while wearing some VERY good disguises) and depositing the profits in his account DID trigger a SAR even though none of the amounts was more than a few hundred at one time. Prior to that point all of his deposits were ACH from Social Security and a monthly check from his son. The sudden infusion of a couple thousand in cash every month was suspicious and ultimately lead to his arrest.

    BTW, while the reports are made to the Treasury Department, the IRS is the lead agency for Treasury on collection of CTR and SAR data. They routinely share this information with other law enforcement agencies AND use it for income verification at times.

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  • 3 years ago

    concurs with the IRS, with the financial employer, no. i'm seeing posts throughout Yahoo solutions and facebook from human beings bemoaning that their refunds are being despatched lower back to the IRS in view that they had them deposited into the female chum's/boyfriend's/uncle's/brother... etc. debts. and financial employer of usa's call comes up in lots of cases in that context. you would be clever to call and ask first extremely than experience sorry approximately later while you're waiting the three to six weeks for a paper verify to reach. i do no longer have confidence all people who has spoke back your question so far is qualified to assert with any actuality what financial employer of usa's present day rules state.

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  • garyg7
    Lv 7
    1 decade ago

    The IRS doesn't get informed. It's a different part of the US Treasury Department.

    If you try to stay under the $10,000 daily limit, the bank may still have to inform the Office of Foreign Asset Control (OFAC). Intentionally avoiding the $10,000 limit is illegal. (It's referred to as "structuring.")

    If the money is repayment of a loan, you should hold onto anything that proves you loaned money to your cousin.

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  • 1 decade ago

    They will, but since this is all reflected on your income tax return they won't do anything at all.

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  • 1 decade ago

    if deposited all at once im sure you will need to inform them.

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