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Thread: Cash deposits

  1. #1
    Member Versalia's Avatar
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    Default Cash deposits

    We all know that stripping is mostly cash business. Certain clubs in certain parts of the country do issue you a check but mostly it's just cash. If you work full time(5days a week), you will probably acquire a relatively large cash sum in a span of the month(say 8-10k). The question is: how do you deposit it without your bank filing a "suspicious activity" form to IRS? Is there a safe way to convert that cash into check and deposit it that way? Btw, I have no problem paying taxes from ALL my income. What I do have problem with is the "suspicious activity" because I'm not doing anything suspicious or illegal.

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    Default Re: Cash deposits

    Make a deposit every day. When I was travelling and dancing, I had a bank account with a bank that had branches in all the cities where I danced. Even when I was out of town, I made regular daily deposits. Thus, a big deposit was like $5,000. Usually it was less. But, every day.

    I also deposited it all in the bank. Then I wrote myself a check.

    I had one bank account for stripping. Everything I made, I put in there. I wrote checks or used the stripping debit card to pay my stripping bills. For example, If I was staying in Louisville for a week, the stripping visa check card paid for the motel. If I needed costumes, I paid for them with a stripper account check or my stripper debit card. Since the bank had branches in the cities I frequented, I had lots less trouble with checks. Even if way out of town, visa check cards work.

    HTH
    Z

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    Default Re: Cash deposits

    ^^^ same same for me re a dedicated bank account, a checkbook and debit card tied to that dedicated bank checking account, and frequent / daily deposits. I also 'paid myself' via a weekly inter-account transfer between my dedicated 'business' account and my personal account. All 'business' related expenses got paid out of the dedicated account, and all 'personal' bills got paid out of my personal account.

    All US banks are now under new regulations requiring them to report 'suspicious activity' on the part of depositors. Depending on the particular state, this can mean that the bank teller will start asking questions if A. individual cash deposits exceeding $3000 are made, or B. the teller notices a 'pattern' of repeated smaller cash deposits being made by the same person. Using an ATM for deposits takes the human teller out of the equation ... albeit at the expense of a couple of days delay before the dedicated bank checking account is actually 'credited' with the ATM deposit.

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    Default Re: Cash deposits

    I keep all of my money in a safe and only deposit money in the bank to pay bills
    " I would rather be tired than BROKE"

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    Default Re: Cash deposits

    Thank you for your replies ladies! I appreciate that! However, if I deposit every day wouldn't it be considered as "pattern" of small deposits? Or if I deposit $500 one day, $800 another and $400 another day, it wouldn't be considered a pattern? Also, it is tellers responsibility to notice and file suspicious activity and if I use ATM I can basically avoid this problem?

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    Featured Member Vamp's Avatar
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    Default Re: Cash deposits

    ATMs can also process suspicious activity reports when the transactions are processed. There is alot of people trying to pull different types of fraud with the ATM. It is monitored heavily.

    All the above suggestions are correct.

    This biggest way to help yourself is become friends with the tellers. So many strippers becoming overly defensive when tellers ask them questions. Tellers arent looking to nab strippers. They are looking for people who are money laundering. Money laundering is cash that is made by illegal sources.

    If you are nervous about telling them you are a stripper, tell them you are a waitress. They have to ask everyone questions. Be nice be friendly and answer their questions. Strike up conversations about other things when they dont ask questions. It would surprise people how it can be that simple.
    Nature knows no indecencies; man invents them. ~ Mark Twain


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    Default Re: Cash deposits

    Quote Originally Posted by Versalia View Post
    Thank you for your replies ladies! I appreciate that! However, if I deposit every day wouldn't it be considered as "pattern" of small deposits? Or if I deposit $500 one day, $800 another and $400 another day, it wouldn't be considered a pattern?
    Then every legit business in America would be generating suspicious activity reports. The fact of the matter is, businesses that do a large cash trade make regular deposits. Businesses that take checks, make deposits every day the receive a check. Businesses put their money to work for them. So should you. By making daily deposits, what you are really doing is establishing a pattern of non-suspicious activity.

    HTH
    Z

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    Default Re: Cash deposits

    ^^^ that's indeed true ... IF the dedicated account receiving the large cash deposits is in the name of a registered business. You and I have obviously made the effort to set things up that way, but the OP may not have ! Making a lot of large cash deposits into an account 'owned' by an individual ( using the individual's SS# ) is guaranteed to receive more scrutiny than an account 'owned' by a registered business ( using the business' EI# ).

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    Member Versalia's Avatar
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    Default Re: Cash deposits

    Thank you for your input once again! I actually did set up an S corporation and obtained EIN. I also set up a bank account for this s corporation. I work every day, so I guess whatever I make, I'll just deposit every day then

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    Default Re: Cash deposits

    ^^^ it sounds like you're good to go ^^^

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    Default Re: Cash deposits

    This might be a stupid question, but if you are going to pay taxes on it eventually (every tax year) then why would you worry about suspicious activity? I was under the impression that only those people who do not intend on reporting those deposits as income, and paying taxes on them, would have to worry.

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    Default Re: Cash deposits

    If you're paying taxes (quarterly is best) you have nothing to worry about.
    Admire her if you will, but imitate her never, said the parents to the enamored children.

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    Default Re: Cash deposits

    ^^^ if banks wind up filing 'suspicious activity' reports based on an individual ( as opposed to a business ) making large and / or frequent cash deposits, this may increase the chances of an IRS audit. And even if you are making quarterly estimated tax payments and filing annual individual tax returns with schedule c for your unincorporated business, unless you have 3rd party documentation available to prove how much money you did ... and more importantly did NOT . .. earn, you run a potential risk that the IRS may deem your self-reported earnings to be a 'work of fiction'. If that were to happen, you may receive a bill for a higher amount of taxes due, based on an IRS 'estimate' that you actually earned more money than is listed on your tax return.

    Not keeping business banking separate from personal banking, not keeping 'professional' business books, not making quarterly estimated tax payments, etc. only increase the probability of the IRS regarding the amount of business income you actually reported on your tax return as a 'work of fiction'.

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    Default Re: Cash deposits

    You do want to avoid suspicious activity. There was a lawyer in Raleigh who paid his taxes on some large cash fees, but still ended up afoul of the IRS for money laundering. Of course, he was money laundering, the taxes were just a "cost of doing business." If you pay the taxes on an illegal activity, you don't immediately get a pass. It just takes tax evasion off the table when it comes time to prosecute.

    HTH
    Z

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