$10,000 or more banks must report to IRS?

[kanicbird]

So the reporting really only aplies to cash and normally would not be reported when someone just deposits a check for over $10,000?

[samclem]

*Originally posted by kanicbird *
**So the reporting really only aplies to cash and normally would not be reported when someone just deposits a check for over $10,000? **

Right. You can deposit a million dollar check from the lottery, and no one has to fill out a form. There is a paper trail there if the IRS ever wants to audit you.

But you have to report 10K in cash, money orders, etc. Things which are negotiable, but don’t leave a paper trail.

[Declan]

*Originally posted by kanicbird *
**So the reporting really only aplies to cash and normally would not be reported when someone just deposits a check for over $10,000? **

I think someone already mentioned it upstream , but all transactions are recorded , just cash seems to be flagged right off as suspicious.

So if you wanted to launder a certain amount of coin , then go to nevada (casinos), hand it in to them, and have them give you a money order in return.

Declan

[samclem]

So if you wanted to launder a certain amount of coin , then go to nevada (casinos), hand it in to them, and have them give you a money order in return.

If the Money Order was !0K or over, WHAT would you do with it. It’s just like cash, and reportable.

[Nvme77]

Even if you brought coin and try to cash it in small amounts at a time, there is no way. The machines have mostly reverted to giving out paper slips when cashing out- and Nevada takes info down on winnings over $1200 for IRS purposes.

Also, its recorded for each machine, fills and payouts so there is always a papertrail. Thats one way the casino knows whats paying out and how much. Also cameras everywhere.

[Declan]

*Originally posted by samclem *
**If the Money Order was !0K or over, WHAT would you do with it. It’s just like cash, and reportable. **

Yes but then the money order would be clean. Reporting the cash is what starts the paper trail thats always there with cheques and money orders , drafts and any other form of promisary currency.

In the US , someone correct me if I am wrong ,but it was a tactic in the war on drugs ,cause the dealers would always have cash money coming in from street sales. In non american countrys , its a tactic for keeping capital flight from happening.

If I was to win a lottery in Canada , for a large amount of Money , the first thing I want to do , is get it out of Canada , and convert it first into American money ,and then un-reportable to REVCAN so that I wont be taxed on it.

Declan

[Declan]

*Originally posted by Nvme77 *
**Even if you brought coin and try to cash it in small amounts at a time, there is no way. The machines have mostly reverted to giving out paper slips when cashing out- and Nevada takes info down on winnings over $1200 for IRS purposes.

Actually the idea would be to take in increments of several thousand dollars in cash , convert it into chips , stay in the casino for say a half hour ,and then cash out, requesting the money order instead of the cash.

You might play a table , or pull the slot arm a few times , but just enough to keep from looking suspicious. Same formula spread over the other casinos on the same day ,and you should be able to launder a signifigant portion of money.

But thats for entertainment purposes only

Declan

[amarone]

*Originally posted by Declan *
**Actually the idea would be to take in increments of several thousand dollars in cash , convert it into chips , stay in the casino for say a half hour ,and then cash out, requesting the money order instead of the cash.
**

But as has already been pointed out, a money order has to be reported in the same way as cash. From IRS form 8300:

Definitions
Cash. The term cash means the following:

• U.S. and foreign coin and currency received in
  any transaction.
• A cashier’s check, money order, bank draft, or
  traveler’s check having a face amount of
  $10,000 or less that is received in a designated
  reporting transaction (defined below), or that is
  received in any transaction in which the recipient
  knows that the instrument is being used in an
  attempt to avoid the reporting of the transaction
  under either section 6050I or 31 U.S.C. 5331.

So I don’t see how it helps that you have a money order rather than cash.