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Thread: Making a very large deposit into my checking account

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    Veteran Member HoolaTwister's Avatar
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    Crossfingers Making a very large deposit into my checking account

    OK, I'm going to sound very dumb right now but hopefully someone could help me. What would happen if my friend weird a very substantial amount of money into my checking account. Over ten thousand. Will the bank report it to the IRS? Ahhhhgdhdj. It's nothing illegal or anything, I'm just getting a large present

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    God/dess laurielegs's Avatar
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    Default Re: Making a very large deposit into my checking account

    From what I understand, yes it gets reported if over 10k.


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    Veteran Member HoolaTwister's Avatar
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    Default Re: Making a very large deposit into my checking account

    So even if it is wired directly from his bank account to mine? Ugh.

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    Featured Member Aurora14's Avatar
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    Default Re: Making a very large deposit into my checking account

    10k triggers automatic filing requirements. It is nothing to worry about if the money is clean. As long as it can be shown that the giver earned it legally and you are receiving it legally you'll be fine. Just make sure you report it when you file your taxes next year.

    Could the gift giver split it in multiple smaller payments that could be done over time? Say 2 or three deposits over the time of a month?

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    Default Re: Making a very large deposit into my checking account

    If domestic probably not.

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    Default Re: Making a very large deposit into my checking account

    actually, the DOJ and FDIC have recently lowered the federal 'cash transaction' reporting requirement for banks to $5k.

    However, there is some ambiguity regarding the definition of 'cash'. Put another way, funds which are wire transferred from a US bank to another US bank are less likely to attract attention than walking up to the bank teller with actual 'cash', a personal check, etc.

    I should also point out that, under existing IRS precedent, unless the person making a 'gift' to an adult entertainment industry worker is a family member or a documentable 'philanthropist', the IRS will interpret this money transfer as 'payment for services rendered' ... which is fully taxable !!!

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    Default Re: Making a very large deposit into my checking account

    Quote Originally Posted by Melonie View Post
    actually, the DOJ and FDIC have recently lowered the federal 'cash transaction' reporting requirement for banks to $5k.

    However, there is some ambiguity regarding the definition of 'cash'. Put another way, funds which are wire transferred from a US bank to another US bank are less likely to attract attention than walking up to the bank teller with actual 'cash', a personal check, etc.

    I should also point out that, under existing IRS precedent, unless the person making a 'gift' to an adult entertainment industry worker is a family member or a documentable 'philanthropist', the IRS will interpret this money transfer as 'payment for services rendered' ... which is fully taxable !!!
    Thanks for replying!!

    What if the wire transfer was not, say, "payment for services rendered" by moi, a adult entertainer, but if it was my "boyfriend" giving me money?

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    Banned Melonie's Avatar
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    Default Re: Making a very large deposit into my checking account

    ^^^ my guess is that, with ~$5,000 worth of additional tax money at stake, the IRS is not likely to simply take your 'word' for it. And that is especially likely to be the case if the IRS already has past tax documents showing your connection to the adult entertainment industry. Pure conjecture, but I would suspect that for the IRS to go away satisfied that the payment was in fact a non-taxable gift from your 'boyfriend', there would need to be a paper trail of shared e-mails, a paper trail of co-habitation, etc.

    Then again, with a bank to bank wire transfer ... or better yet several small transfers spread over a period of weeks or months ... IRS attention may never be attracted.

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    God/dess Zofia's Avatar
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    Default Re: Making a very large deposit into my checking account

    A wire transfer would only trigger a cash transaction report if it included a pay on specified identification clause. If it's just a wire transfer into your account, no report. Why? There's already a paper trail. So money laundering is not an issue. The deposit at the other end might trigger a cash transaction report if the deposit was in cash. But the report would be for the depositor, not you. The withdrawl, if in cash would trigger the report on you though because you took the money out in cash. But, if you write a check, no report. Again, there's already a paper trail.

    HTH
    Z

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    Newbie REIGuy's Avatar
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    Default Re: Making a very large deposit into my checking account

    My experience has been that the receipt of standard (domestic.......inside the USA) bank wires do not trigger any reporting, unless there seems to be something that might alert the banker of illegal activity (somewhat rare).

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    Default Re: Making a very large deposit into my checking account

    The gift tax has another exception, helping someone with medical bills. Better keep all your receipts tho.

    Maybe the guy can send travelers checks instead of wiring into a monitored account. My credit union does not charge me if I purchase those thru them. In any case he should not send the thing as one lump sum any way it is transferred.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Making a very large deposit into my checking account

    Quote Originally Posted by threlayer View Post
    The gift tax has another exception, helping someone with medical bills. Better keep all your receipts tho.

    Maybe the guy can send travelers checks instead of wiring into a monitored account. My credit union does not charge me if I purchase those thru them. In any case he should not send the thing as one lump sum any way it is transferred.
    This - domestic wires are 100 times less likely to trigger issues than a cash deposit. The reporting rules are all about cash, not domestic wires.

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    Default Re: Making a very large deposit into my checking account

    So travelers checks (or other demand instruments) are considered cash....
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Making a very large deposit into my checking account

    ^^^ not exactly. However, the purchase of 'demand instruments' i.e. traveler's checks, money orders, pre-loaded debit cards, etc. is considered to be a 'cash' transaction. More importantly, the sellers of such instruments now collect personal data from the ( otherwise anonymous ) buyer when certain threshold amounts are exceeded ... for the purpose of filing reports. The US Post Office has set a $1500 limit. Corporate sellers have a $1000 limit. Debit card sellers have a $500 limit, etc. ( in NY at least ).

    The arguable reason for the personal data collection and reporting at the point of sale is the recent popularity of such 'demand' instruments as a medium for 'anonymous' same-as-cash payments between distant parties via snail mail.

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    Default Re: Making a very large deposit into my checking account

    Yes, anything over 10k triggers a CTR or Currency Transaction Report, whether it's a deposit at the bank or purchase at a store. It's nothing you need to worry about. There are literally hundreds of thousands of CTR reports filed to the IRS every month.

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    Default Re: Making a very large deposit into my checking account

    ^^^ again the DOJ and financial regulators have recently reduced the reporting threshold to $5000. But, as you point out, with hundreds of thousands of CTR's being issued every month ... a number that will now increase with the lowered reporting threshold ... the existence of a CTR isn't likely to draw any particular attention in and of itself. CTR's can become important, though, if the IRS is prompted to start 'poking around' for other reasons, with CTR's being turned up during an IRS computer search then potentially adding to IRS 'suspicions'.

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    Default Re: Making a very large deposit into my checking account

    I wouldn't do it. Have him send you money orders in $1500 increments and deposit them at different times. Screw alerting anyone with large amounts of money being wired, screw any taxes for income or gifts. BE SAFE. Don't bring attention to yourself or anyone else.

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    Default Structuring

    Making repeated deposits of just under $10,000 can get you surveilled.

    http://dailysignal.com/2015/05/14/fe...e-store-owner/
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Making a very large deposit into my checking account

    That case is NOT new. We have discussed similar type cases in this very forum.

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    Default Re: Making a very large deposit into my checking account

    Quote Originally Posted by Zofia View Post
    A wire transfer would only trigger a cash transaction report if it included a pay on specified identification clause. If it's just a wire transfer into your account, no report. Why? There's already a paper trail. So money laundering is not an issue. The deposit at the other end might trigger a cash transaction report if the deposit was in cash. But the report would be for the depositor, not you. The withdrawl, if in cash would trigger the report on you though because you took the money out in cash. But, if you write a check, no report. Again, there's already a paper trail.

    HTH
    Z
    This. Wires from one bank account to another are not included in CTR reporting requirements.

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    Default Re: Making a very large deposit into my checking account

    ^^^ That's true for wire transfers between two US domestic banks. However, wire transfers from 'offshore' banks to US domestic banks receive a fair amount of scrutiny as a result of terrorist anti-money laundering laws / treaties.

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    Default Re: Making a very large deposit into my checking account

    ^^^Yes and no. They still do not result in CTR reporting as wires are not covered under the CTR requirements. SAR monitoring covers wires, but the amount of scrutiny depends largely upon the source country. Wires from cooperative countries, which are those that are deemed to have strong anti-money laundering requirements, are scrutinized far less than those from non-cooperative jurisdictions. Most European countries, by way of one example, are considered cooperative.

    Keep in mind that the number of wires transmitted in a given day among banks, foreign and domestic, is simply staggering. Most money movements nowadays are done by Fedwire and ACH, so it takes a lot to move the needle for automated SAR reporting. A one-off wire of $10k or so, sent from another domestic bank or even from a bank in another industrialized country, is not realistically going to result in a reporting issue. Sure 10k may seem like a lot from a personal standpoint, but it is a very small amount compared to many of the wire transactions that occur between banks in a given day.

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    Default Re: Making a very large deposit into my checking account

    Quote Originally Posted by TiffTiff View Post
    I wouldn't do it. Have him send you money orders in $1500 increments and deposit them at different times. Screw alerting anyone with large amounts of money being wired, screw any taxes for income or gifts. BE SAFE. Don't bring attention to yourself or anyone else.
    And this is exactly what I was talking about in another thread when I said that worrying about this stuff could very well do more harm than good. There is nothing illegal about taking a large personal gift, the wire transfer is not subject to CTR reporting and is extremely unlikely to ever get tagged by SAR monitoring unless it is part of a routine pattern or comes from a non-cooperative country.

    But in order to avoid a problem that doesn't really exist, one member would convert the payment from one that is not subject to CTR, and is highly unlikely to ever being reported anywhere, to negotiable instruments that ARE subject to CTR. She would then engage in illegal structuring activities that could be caught, especially if she does what she suggested and makes several equal amount deposits of money orders (frequent equal amount deposits and the use of money orders both draw scrutiny because they rarely happen naturally), all to avoid a boogeyman reporting issue that never existed in the first place.

    Like I said in the last thread and I will say in this one, the odds that these requirements will ever create a serious problem for the overwhelming majority of strippers are extremely low. You are at far greater risk of having a problem by over-thinking your cash and wire deposits than by simply acting naturally and putting in your earnings as you collect them, whether by cash or by wire.

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    Default Re: Making a very large deposit into my checking account

    Everybody always says that but I get large deposits (between 25-35k) a few times a year and nobody has ever done anything to me about it.

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    Default Re: Making a very large deposit into my checking account

    Quote Originally Posted by Melonie View Post
    actually, the DOJ and FDIC have recently lowered the federal 'cash transaction' reporting requirement for banks to $5k.
    How recent was this? I need to know lol.
    "Rather have my feet hurting than my pockets."

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