Bank transactions

[Jackal2k6]

What is the name of your state? IL

Ok, I'd like to know how this works. Let's say somebody transfers less than $10K to your checking account. Does bank report this money to IRS? Do you have to pay tax for this money? If so, how much? Can money be transferred to two accounts at the same bank if the total is more than $10K (i.e. $6K to one account and $7K to another account but at the same bank). Is there a limit how many transactions you can do of less than $10K per transation? Thank you.

[anteater]

Originally Posted by Jackal2k6

What is the name of your state? IL

Ok, I'd like to know how this works. Let's say somebody transfers less than $10K to your checking account. Does bank report this money to IRS? Do you have to pay tax for this money? If so, how much? Can money be transferred to two accounts at the same bank if the total is more than $10K (i.e. $6K to one account and $7K to another account but at the same bank). Is there a limit how many transactions you can do of less than $10K per transation? Thank you.

And what do these transfers represent? Gifts? Payment for services? Laundering drug money?

[Jackal2k6]

Laundering drug money??? Are you kidding me?

Does anyone know how this works, or should I go to the bank and ask them?

[anteater]

Originally Posted by Jackal2k6

What is the name of your state? IL

Do you have to pay tax for this money?

Well, this question can't be answered without knowing what the "transfers" are all about.

And, since you are reluctant to answer that, the rest of your questions have the odor of illegal activity hanging about them. Maybe someone will answer.... maybe not....

[efflandt]

The bank may file a Suspicious Activity Report (SAR) for transactions aggregating $5000 or more if they suspect that the money is from illegal activities or that you are trying to disguise or hide assets. In fact there is a vague catchall if The transaction has no business or apparent lawful purpose or is not the sort in which the particular customer would normally be expected to engage, and the institution knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction.

So even a series of smaller transactions may be reported to the federal government. But if it is all perfectly legal, you have nothing to worry about.