Depositing a large sum of money in the bank, will I go to jail?
Three months ago my grandmother passed away. This weekend while cleaning out her closets I found a large duffle bag stuffed full of money. $147,000 in cash actually. I am currently a 30 year old student who is getting financial aid. I do not have a job. My question is: how do i put the money in the bank without the IRS arresting me. I've heard that anything over $10,000 gets flagged and reported to the IRS. Plus this is a LOT of cash, I do not feel safe (I have two roommates) leaving this money at home and not put away somewhere secure like my checking account. Please help as to what will happen if I deposit this much money in the bank. Also, I would like to purchase a car (the cost is about $40,000) with some of the money. If I walk in the dealership and just say I want to purchase the car with all cash, will they call the police to have me arrested?
How do I deposit a large amount of cash without getting in trouble?
If this is the first time you have credited a large cash amount (and I mean US$/ GB£ Notes) in to your account, particularly if your transactions in the past have been small, be prepared for questions, not initially by the cashier, but later when the voucher processing stage.The bank will take the money over the counter purely for safety sake (walking around with a lot of hard cash is very dangerous) may not place it in you account, but in a special suspense account for inspection. If it is electronic funds transfer, such as a Telegraphic Transfer or CHAPS payment, which has an audit trail, there are unlikely to be questions.When my late father passed on, I received a significant (for me) legacy, I notified my bank that the money was coming in from a solicitor and it was as a result of my father’s legacy. Further that there were going to be a lot of high value out-bound transactions.:To pay off my mortgage and second Charge over my houseTo buy a carPay a series of large debts (average £10K each)That gave them notice that the unusual transactions were known about and were not suspicious, particularly given that they were going to happen within about 10 days of the money coming in to the account, to be sent out again. It indicates to the bank that there is no money laundering.The safest way of depositing a large sum is by:CHAPS/BACS/ Wired Funds Transfer (TT); with the exception of BACS “real time”.Bankers Draft, payable to you, or marked “Bearer”. That is a “cheque” drawn on the bank of issue from their reserves, so in effect a guaranteed payment. The term bearer means that whoever holds that draft is entitled to the money and can demand payment in an alternative form, whether that is Gold, Precious materials including commodities, like oil, precious stones etc. and of course currency notes. Again the last one far from safe.
Will depositing $400 every 2 weeks in a bank account raise flags?
The money you receive from your parent may not be subject to income tax for you, but it could trigger a need to file a gift tax return depending on the total for the year. See the IRS website, under "gift tax".
If I deposit large amounts of cash every few weeks will my bank raise questions?
I have a lot of cash saved up in a home safe and not much in the bank, after talking with family members I have decided to transfer the cash to my bank to earn interest, not be burned in a house fire, stolen in a potential robbery etc. I also have expensive music equipment I am beginning to sell for cash that is adding to the amount every few weeks. If I start making large cash deposits, say maybe 4k-5k every few weeks will it cause me any problems because that will be more than my reported income is at from my current job or because I'm making cash deposits every so often when I have not done that in the past? I already paid taxes on most of the cash as it was earned from a previous job but I haven't saved the pay stubs to "prove" where the money came from and the place is closed now so I can't really obtain proof plus I haven't paid any tax on the proceeds of the equipment and still have most of it to sell yet over the next few months. I know it's not like I'm walking in with a million dollars every day or anything but I don't know much about how this works and want to avoid any problems or red flags from the eyes of the bank/IRS/gov or whomever watches for these kinds of things. Thanks in advance for your professional comments and answers.
Question about the IRS and depositing over $10,000 into a bank account?
My family and I sold a house that was inherited in TX (im in CA) and the money is being split up between us leaving me about $14000. Taxes are being taken out along with closings costs and Im going to open up a bank account with Wells Fargo within the next week or two. I was reading that because the amount that will be deposited is over $10k that the IRS will be notified. Does this mean Im going to be taxed on this money again? That doesn't really seem fair being that the money stemmed from a property that was inherited and was not actually earned. Or do I have this all wrong? Can someone please help me understand?
How much can I deposit into my bannk account without raising eyebrows from employees?
Anything more than $10,000 in cash gets reported to the government, or if a series of transactions look suspicious. For example, someone with no previous history of large cash deposits starts depositing $5,000 - $8,000 every couple of days for a year. You need an excuse for the large cash deposits, such as a business to launder it through. Another option is to open accounts at many different banks. Then deposit a few grand every couple of weeks into each account. You can then write checks from those accounts to another account which you use to create an investment account so you will be earning some income off your drug money instead of having it sit in a duffel in your closet.
If I deposit 20,000 cash in my checking account, will I be red flagged from IRS?
Oh my, no. Plus, I never heard of”red flagging”. Sounds like a race for bulls.All we do, and its harmless, is fill out a CTR (currency transaction report) after the first $10,000. We would report the whole transaction, listing all that is known about it. These are sent to the government, where they sit. Most never get seen again. End of story.We never ever talk to the IRS, by the way. They talk thru attorneys, any way. We have no direct line to the IRS, for example. That is just a misconception.So, deposit the money. HELP the bank complete the CTr accurately. It is in your interest to do so.DO NOT break it up into chunks to evade the reporting requirement; THAT is illegal (structuring to evade) and even has a nickname; “smurfing”.Know that we do have solid obligations and methods to total the deposits for a day and issue the report, whether you want us to or not. We are obligated to by federal law.Its your $20k. If you earned it legally (whether taxes are owed on it is 100% irrelevant), you should WANT us to fill out the CTR. Please do not fear it. Doing so protects you MORE than any repercussions this natural, but unfounded, fear causes you to imagine.
Can I get investigated by the IRS or a bank if I deposit too much money?
Reena is incorrect. When you deposit that much cash, the teller is required to complete a currency transaction report and file it with the federal government. A currency transaction report (CTR) is a report that U.S. financial institutions are required to file for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through, or to the financial institution which involves a transaction in currency of more than $10,000 You could deposit half the amount in one bank and the other half in another bank. But don't leave the money lying around. It could be stolen or lost in a fire.
Several thousand dollars in cash from graduation gifts, how do I deposit it into my bank account without looking suspicious?
I am going away to college. Currently unemployed and have only a few bucks in my checking and savings account. I will deposit small amounts of cash every now and again, but I'm wondering how do I go about and do this. I'd imagine one giant sum of several thousand dollars would look suspicious, but so would smaller, frequent deposits every month right? If I were to do around $400 every month or so, would that be okay? Thank you!