Q:

Do banks report large deposits to the IRS?

A:

Banks in the United States are required to report cash deposits in excess of $10,000 to the IRS. The requirement pertains not only to one lump sum cash deposit in excess of $10,000 but also to two or more related deposits that total over $10,000.

Related transactions are those that occur within a 24-hour time period. In addition, if a bank reasonably believes that a series of cash deposits are related, even if they are made outside of the 24-hour time frame, the IRS reporting is triggered. The primary underlying purpose behind this reporting requirement is to combat illegal money laundering and related types of fraudulent conduct.

Sources:

  1. irs.gov

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