Coronator t1_iy8c6jz wrote on November 29, 2022 at 2:43 PM

Reply to comment by SkyliteBlueSnake in Received a small inheritance in two parts, how long should I wait between deposits? by otterlyeeg

What form is that? People make 5 and 6 figure deposits routinely without filling out forms.

SkyliteBlueSnake t1_iy8d7cq wrote on November 29, 2022 at 2:51 PM

Yeah, I was unclear, mainly in an attempt to reinforce that trying to outsmart the system is just not worth it. To be more clear, if you deposit $10K or more in cash, form 8300 needs to be filled out (I think maybe the bank will take care of it). And constantly making cash deposits of $9K is considered structuring which is a crime subject to civil and criminal liability (as opposed to a one off deposit of $9K). Depositing a check is in fact different. And also, your state either has inheritance tax or it doesn't (6 do), the # of checks doesn't change what the state will take from you.

Minigoalqueen t1_iy8pg0c wrote on November 29, 2022 at 4:18 PM

It also matters if it is a personal or business account, and what is normal for your usage. I deposit large amounts of cash fairly regularly for work and I've never once had to do paperwork for it. We manage rentals and some tenants pay cash. I have had days I deposit over $10,000 in a day. And I have had weeks where I deposited multiple deposits less than $10,000 that added up to more than 10,000. It isn't structuring because it is normal course of business.

And yes I know that doesn't apply in this case because this person is depositing into a personal account. I just wanted to make the point that frequent deposits of less than 10,000 in cash is not necessarily structuring.

SkyliteBlueSnake t1_iy8rdg1 wrote on November 29, 2022 at 4:31 PM

Per the IRS website: Transactions that require Form 8300 include, but are not limited to: escrow arrangement contributions, per-existing debt payments, negotiable instrument purchases, reimbursement of expenses, making or repaying a loan, sales of goods or services, sale of real property, sale of intangible property, rental of real or personal property, exchange of cash for other cash, custodial trust contributions.

"Who Must File: A "person" who must file From 8300 includes an individual, company, corporation, partnership, association, trust, or estate. You must file Form 8300 with the IRS if any part of the transaction occurs within any of the 50 states, the District of Columbia or a U.S. possession or territory. . ."

You don't have to file it on the spot; it needs to be filed by the 15th day after the cash deposit is made. And the bank will make separate reports of large deposits to the IRS.

Minigoalqueen t1_iy9cnih wrote on November 29, 2022 at 6:50 PM

Interesting. The IRS has never said a word to us in 20 years. We've probably done 250 or more cash transactions over that time that were over $10,000 or that added up to over $10,000 over the course of a week. Never filled out a form 8300 even once and never heard a word about it.

TywinShitsGold t1_iy8od7p wrote on November 29, 2022 at 4:10 PM

It’s automated. The teller checks a box and the form auto populates and the CTR gets filed with FinCEN.

If the bank software or the teller suspects anything suspicious, a second form (SAR) gets filed with FinCEN.

Both forms get electronically sent to the Treasury FinCEN office in Detroit (or wherever the Treasury servers are located). The server files it in a digital filing cabinet where its promptly indexed and ignored.

FinCEN likely has an AI pattern recognition layer that trolls the index for patterns. If one is discovered, software likely alerts an analyst/investigator.

18 or so million CTR’s get filed per year, along with 3 million or so SAR’s. The first 3 layers of review are all gonna be software.