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4 Min. Read

How Much Money Can You Deposit Before it is Reported?

If you deposit more than $10,000 in your bank account, your bank has to report the deposit to the Internal Revenue Service by filing the IRS Form 8300.

The guidelines for large cash transactions for banks and financial institutions are set by the Bank Secrecy Act, also known as the Currency and Foreign Transactions Reporting Act. The goal is to prevent money laundering by criminals using cash deposits to disguise their illegal source of funds.

What this article covers:

What Is the Maximum Amount of Cash You Can Deposit in a Bank?

Millions of people make regular deposits into their savings or checking accounts to pay bills, build up their savings and prepare for their retirement. There is nothing illegal about depositing large sums of cash in the bank account. However, deposits over $10,000 have to be reported to the IRS.

Are Banks Required to Report Large Deposits?

When a cash deposit of $10,000 or more is made, the IRS requires the bank to complete Form 8300. This form reports any transaction or series of related transactions in which the total sum is $10,000 or more. So, two related cash deposits of $5,000 or more also have to be reported.

Related transactions are those that occur in a 24-hour time period between the buyer and the seller. Even when there are 24 hours between transactions, it needs to be reported, if you know that they’re connected transactions.

Withdrawals of $10,000 or more or cash used to buy a negotiable instrument such as a bank draft or a cashier’s check also have to be reported. This rule applies to American dollars as well as foreign currency worth more than $10,000.

Filing Form 8300

The Form 8300 offers valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN). It helps the agencies combat money laundering that is used to facilitate various criminal activities such as drug dealing and terrorist financing.

According to the IRS, here are some things you need to keep in mind while filing Form 8300.

Trades and businesses which receives more than $10,000 in cash in a single transaction or in related transactions have to file IRS/FinCEN Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

Transactions that require Form 8300 include, but are not limited to:

  • Escrow arrangement contributions
  • Pre-existing debt payments
  • Negotiable instrument purchases
  • Reimbursement of expenses
  • Making or repaying a loan
  • Sale 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

The cash can be received as a lump sum, installment payments that cause the total cash

received within one year of the initial payment to total more than $10,000 and previously

unreported payments that cause the total cash received within a 12-month period to total more

than $10,000.

If the cash deposits were made to a joint account, you will have to identify each depositor.

The cash can be in American or foreign currency.

Cash also includes cashier’s checks, money orders, bank drafts less than $10,000 for designated reporting transaction (retail sale of a consumer durable, a collectible and travel or entertainment). If, however, a client uses a negotiable instrument with a face value greater than $10,000, the transaction does not need to be reported.

You have to file the form within 15 days after receiving the cash.

You can file the form electronically or mail it to the IRS.

A copy of this form is sent to the Financial Crimes Enforcement Network (FinCEN). When banks and credit unions fail to report these transactions, IRS can impose severe penalties on them.

How Much Cash Can You Deposit Before It Is Reported to the IRS?

If you deposit less than $10,000 in a specific time period, it does not have to be reported.

However, when a customer makes multiple smaller payments in a 12-month period, the 15 days countdown for reporting to the IRS starts as soon as the total paid exceeds $10,000.

The IRS may also look at suspected “structured” deposits that were made to evade the $10,000-or-above reporting requirements. For example, if you’re consistently depositing $9,800 for two weeks to evade the IRS. In this case, the bank will file a Suspicious Activity Report with the FinCEN. This report is also available to the IRS.

As a small business owner, if you foresee a time when you would be receiving enough funds to exceed $10,000 in deposits in the near future, talk with the bank or credit union. They will let you know the best way to adhere to the rules outlined by the Bank Secrecy Act and the Patriot Act.


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