Asset structuring and the IRS: we have to be careful

[Zero]

Apparently it is illegal to make several deposits (each less than $10,000) at one or multiple banks that add up to $10,000 or more on any one day.

Bank Deposits, Structuring, and Asset Forfeitures

I currently don't have this problem, but I could see how a serious CRH who had searched 23 boxes might make this mistake.

The law was put into place to fight drug trafficking, but apparently ensnares some innocent people.

I don't keep a large account balance, but the IRS can seize the account if you are found to be "structuring" your deposits.

I don't mean to scare anyone. I had heard that CRH could put you on a watch list for odd banking behavior, but I didn't know what activity they were targeting.

I hope that they know enough about CRH to say, "oh they are just looking for silver in half dollar boxes", but the IRS seems to lack common sense.

Keep on rolling.

 

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[Iamrussell]

Thats why i always cash out my dumps and never deposit them

 

[MIhunter]

There is a lot of confusion about this issue, a lot of false statements online and elsewhere!

1) It is NOT illegal to deposit, carry or cashed out, ANY amount of money.

2) However, if you are apart of a cash transaction of greater than or equal to $10,000 than you must declare it to the IRS.

3) There is no problem with bringing 23 boxes of halves to be deposited, since that is more than $10,000, but you will have to declare it (IRS form 8300)

4) A problem can occur if you frequently make deposits/transactions between $5000-$9999. These deposits could be construed to be attempts to structure your deposits to avoid having to declare (form 8300) and thus raise a red flag to the bank. They are require to report to the Feds suspicious activity.

5) Withdrawing the cash every time won't help you. If your bank has told the Feds that your are making frequent transactions just below the $10,000 threshold. You could become a target of investigation (colonoscopy!).

 

[Omega]

Yes, I've always been strategic when making deposits. As far as the IRS coming after me, bring it on lol. All my moneys in tangible assets and cash, and I'm not doing anything illegal. I had a friend run over 1.5 million through his account in 2012, but in reality he only had 5k cash he was cycling.

 

[Zero]

There is a lot of confusion about this issue, a lot of false statements online and elsewhere!

1) It is NOT illegal to deposit, carry or cashed out, ANY amount of money.

2) However, if you are apart of a cash transaction of greater than or equal to $10,000 than you must declare it to the IRS.

3) There is no problem with bringing 23 boxes of halves to be deposited, since that is more than $10,000, but you will have to declare it (IRS form 8300)

4) A problem can occur if you frequently make deposits/transactions between $5000-$9999. These deposits could be construed to be attempts to structure your deposits to avoid having to declare (form 8300) and thus raise a red flag to the bank. They are require to report to the Feds suspicious activity.

5) Withdrawing the cash every time won't help you. If your bank has told the Feds that your are making frequent transactions just below the $10,000 threshold. You could become a target of investigation (colonoscopy!).

Great points.

I shouldn't have said it was illegal to make a series of deposits less than $10,000 that add up to more than $10,000 on a single day.

It's illegal to intentionally do this to avoid the reporting as you pointed out.

The problem is that they could seize your account and then ask for an explanation which would take time and resources.

Thanks for the detailed reply.

 

[Zero]

Yes, I've always been strategic when making deposits. As far as the IRS coming after me, bring it on lol. All my moneys in tangible assets and cash, and I'm not doing anything illegal. I had a friend run over 1.5 million through his account in 2012, but in reality he only had 5k cash he was cycling.

Yeah...we appear to have a lot more money since most people don't withdraw money and then turn around and deposit it again like we do.

CRHers spend money like millionaires.

 

[MIhunter]

The part that's unfair, is that a law is made with a threshold of $10,000 for reporting.
Then the Feds decided that frequent activity between $5000-$9999 is suspicious.

Since there is no rule, many people didn't to know what not to do.
Most of us know about this from the media reports of honest businessmen caught up in civil forfeiture unfairly.

You gotta love a government with secret rules!

 

[TheMastermind]

The part that's unfair, is that a law is made with a threshold of $10,000 for reporting.
Then the Feds decided that frequent activity between $5000-$9999 is suspicious.

Since there is no rule, many people didn't to know what not to do.
Most of us know about this from the media reports of honest businessmen caught up in civil forfeiture unfairly.

You gotta love a government with secret rules!

... of the people, by the people, for the people... Am I right?

 

[fistfulladirt]

Not only that, the banks can file a report when you make a withdrawal​ from your account for $10k or more. It's your money. They want it.

 

[nighteagle]

And thats why I don't have a bank account anywhere. Its my money, the government has no buisness keeping track of it. I pay my taxes and thats all they need to know.