What will happen if my avg bank balance is about 500, and then i make a 9,500 cash deposit? will irs audit me?If they do, can I say I receive as gift? Will they ask me who I receive it from? If I give them a name, will they audit on that person? Also what FinCEN is going to do with the bank ctr reports? |
Nope, I have deposited larger amounts & never been audited but they (the IRS) eventually would find out I had the cash when I would file my tax returns since the cash from from a home sale or life insurance policy. Though there were never any questions asked.
Mary in Camden, MI.
The only thing you need to worry about is if the person/company that gave you the money issued a 1099 and you never paid taxes on it. If you know that no 1099 was issued or will be, you've got nothing to worry about. The IRS does not scan bank accounts.
For the most part, the IRS audits people on two items. Large deductible donations. And large appraisls. BTW, how did you get $9,500.
no, they will not audit you. The IRS does not sit around looking at the millions of bank accounts.
If you do a CASH transaction of $10,000 you have to fill out a form, but not $9,500.
No, they will not be audited, and you do not have to give them your name. You don't have to fill out a CTR until it is 10,000.01.
If you came by the money honestly there will be no problem. If not shame on you!
