What happens if i deposit a large amount of cash

Not surprisingly, the IRS is a bit circumspect about what happens to filed Currency Transaction Reports -- or what it takes to trigger an investigation. All it says is that the reports go into a database, where law enforcement officials have access to them. These reports create a paper trail that helps the IRS make sure taxes are properly paid and cash isn't used to promote illegal activities.

The law also requires the bank to report multiple transactions that seem related. Really, a bank can report any transaction it thinks is fishy. Plenty of people have legitimate reasons for depositing large sums of cash, and banks can get exemptions for their business customers who regularly do so. Rather than having to fill out a transaction report every day, the bank can obtain an exemption for the theater. Deep Dive Into Cryptocurrency.

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The Institute for Justice is challenging the IRS' use of civil forfeiture, which allows the government to seize assets it suspects have been illegally obtained. It's often local police departments that seize people's cash , but the IRS has also used civil forfeiture law to take money directly from bank accounts, as The New York Times reported this weekend. A person who purposely tries to evade these reporting requirements is guilty of a crime known as " structuring " or " smurfing.

If the IRS even suspects you're guilty of restructuring, it can take your cash. And Carole Hinders, owner of an Iowa restaurant called Mrs. Now, the Institute for Justice is representing Hinders in her efforts to get that money back. Here's how the Institute for Justice summed up her defense :.

In her defense, she will show that she had no intent to evade the reports that banks must file with the U. Rather, she had legitimate business purposes for her banking practices.