whether IRS comes after me for keeping cash?

[higginson]

What is the name of your state? Alabama

As part of declaring my assets to get a loan from a company, I submitted a written document under oath that I have approximately $100,000 currency with me, which I really have for the last many years. I withdrew from my bank accounts for some reasons but did not deposit back. I have no bank documents to prove this. Now my friends are warning me that if this company reports this currency matter to IRS, it may come after me. I am scared if IRS really comes after me.

 

[Taxing Matters]

What is the name of your state? Alabama

As part of declaring my assets to get a loan from a company, I submitted a written document under oath that I have approximately $100,000 currency with me, which I really have for the last many years. I withdrew from my bank accounts for some reasons but did not deposit back. I have no bank documents to prove this. Now my friends are warning me that if this company reports this currency matter to IRS, it may come after me. I am scared if IRS really comes after me.

The loan company is very unlikely to report it, so if I were you I'd not worry about that. However, keeping $100,000 currency in your house or wherever is not particularly safe and it certainly isn't a good financial move because that cash isn't earning anything.

 

[adjusterjack]

How many years is "many years"? I suspect, for an administrative fee, that the bank people can dig up your records for you.

 

[higginson]

Its over 5 years and bank has no records either, I just enquired days ago. I kept the cash in a bank safe and approx $1,000 only is in my home, I did this very recently. If, the company informs to IRS, or by any other means if the IRS is aware of this, will IRS comes after me?

I had some issues with that company's manager who is also almost like CEO of that small company, and the company finally rejected my loan. That company didn't give me any guarantee that they will not share my documents with 3rd parties. I made bad decisions.

 

[Zigner]

Who cares if they tell the IRS? There's nothing illegal about holding on to cash.

 

[Taxing Matters]

Again, it's very unlikely the lender will share the loan app info with the IRS. Should the IRS learn of it, the main issue that may arise is that the IRS may think that the cash represents unreported income. If that happens, get a tax professional to assist with that.

 

[higginson]

So many thanks. In US, is it violation of any law if I keep currency than putting it in bank or some other credit company, etc?

 

[LdiJ]

So many thanks. In US, is it violation of any law if I keep currency than putting it in bank or some other credit company, etc?

No, it is not a violation of the law.

 

[higginson]

Please excuse me, I did not phrase my question properly.

In US, is it violation of any law if I keep currency than putting it in bank or some other credit company, etc. and I have no records/receipts on the source of the money?

 

[Taxing Matters]

Please excuse me, I did not phrase my question properly.

In US, is it violation of any law if I keep currency than putting it in bank or some other credit company, etc. and I have no records/receipts on the source of the money?

No. But the lack of evidence as to where the money came from might raise suspicion by the IRS that the money was from unreported income or by law enforcement that the money came from some kind of illegal activity. It is very rare to find someone not hiding income and/or in a criminal enterprise just stuffing $100,000 in cash in a safe deposit box, after all. The difference is that the IRS can assume that the money is income and leave it to you to prove otherwise while law enforcement can't act on mere suspicion alone; they need evidence enough for probable cause to act.

 

[davew9128]

Find new friends who aren't part of a secret organization hiding things.

 

[higginson]

Great, thank you.