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Last week, i did wire transfer for amount >20K. Bank told me that they need to report this transaction to IRS and it might trigger some kind of IRS audit process. I googled it and found that bank has to report any transaction excess of $10K to IRS. Wish i knew about it earlier. <img src="i/expressions/face-icon-small-mad.gif" border=0>
Do anybody here has such experience? What kind of documents they usually ask for? I read that millions of americans are reported to IRS every year as any transactions above 10K (that may include cashiers check that may be used for house down payment, money order or even school fee).

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Heard of Patriot Act buddy! Welcome to America!

sandy05 said: [Q]Last week, i did wire transfer for amount >20K. Bank told me that they need to report this transaction to IRS and it might trigger some kind of IRS audit process. I googled it and found that bank has to report any transaction excess of $10K to IRS. Wish i knew about it earlier. <img src="i/expressions/face-icon-small-mad.gif" border=0>
Do anybody here has such experience? What kind of documents they usually ask for? I read that millions of americans are reported to IRS every year as any transactions above 10K (that may include cashiers check that may be used for house down payment, money order or even school fee).

And what exactly are you worried about and is there cause for you to worry? I'm pretty sure my Bank had to report me to the IRS for the multiple 10k, 20k, 100k transactions between the bank and my online savings account, but since I'm legit It doesn't bother me...

If you can explain where the $ came from and its not income that the IRS would want to tax, you have no need to worry.

dhl said: [Q]And what exactly are you worried about and is there cause for you to worry? I'm pretty sure my Bank had to report me to the IRS for the multiple 10k, 20k, 100k transactions between the bank and my online savings account, but since I'm legit It doesn't bother me...
Its all good and legit (I have only one job and it was part of my year's savings). Just want to make sure if they ask for some documents. Thats why i asked if anybody has such experience.

missiondeal said: [Q]Heard of Patriot Act buddy! Welcome to America!These reporting requirements pre-date the PATRIOT Act by about 20 years.

missiondeal said: [Q]Heard of Patriot Act buddy! Welcome to America!As has already been mentioned, this has nothing to do with the PATRIOT Act. IRS Form 8300 has been a requirement for decades. Interesting how opponents to the PATRIOT Act seem to have no idea what that piece of legislation says.

I also find it interesting that the IRS does not consider a personal check as "cash". Currency, wire transfers, and cashiers checks do, but personal checks do not. If you buy a car from a dealer using $10,000 in cash, they have to fill out a Form 8300, but if you write a personal check for $10,000, they don't have to do anything.

As for what kind of information they ask for, just look at the Form yourself. The bank has to report your name, address, tax payer id, identification used for the transaction, the amount of cash, and the type of transaction. That's it. You really don't have anything to be worried about.

I have to wire transfer $42k to a friend in Taiwan.

Kinda stuck in the same situation. A bit worried and upset my friend would ask for such a favor.

Should I do it? Seems like red flags all over the place since it's Taiwan.


Conambo said: [Q]I have to wire transfer $42k to a friend in Taiwan.

Kinda stuck in the same situation. A bit worried and upset my friend would ask for such a favor.

Should I do it? Seems like red flags all over the place since it's Taiwan.Why not? These banking laws are not meant to scare people from conducting legitimate business.

cheezedawg said: [Q]Conambo said: [Q]I have to wire transfer $42k to a friend in Taiwan.

Kinda stuck in the same situation. A bit worried and upset my friend would ask for such a favor.

Should I do it? Seems like red flags all over the place since it's Taiwan.Why not? These banking laws are not meant to scare people from conducting legitimate business.

wire 4 tradnsfer of 9999 and 1 of 2004, but seriously if its legt reasons you should worry at all unless there is urgency to have the money arrive

davef139 said: [Q]wire 4 tradnsfer of 9999 and 1 of 2004, but seriouslyU seem to be joking, but that would definitely raise more eyebrows than just doing the full 42k at once. And since its a crime to plan wires as described above, you would have a heck of a explaining why you chose to conduct the 4 transactions in this manner.

workindev said: [Q]missiondeal said: [Q]Heard of Patriot Act buddy! Welcome to America!As has already been mentioned, this has nothing to do with the PATRIOT Act. IRS Form 8300 has been a requirement for decades. Interesting how opponents to the PATRIOT Act seem to have no idea what that piece of legislation says.

I also find it interesting that the IRS does not consider a personal check as "cash". Currency, wire transfers, and cashiers checks do, but personal checks do not. If you buy a car from a dealer using $10,000 in cash, they have to fill out a Form 8300, but if you write a personal check for $10,000, they don't have to do anything.

As for what kind of information they ask for, just look at the Form yourself. The bank has to report your name, address, tax payer id, identification used for the transaction, the amount of cash, and the type of transaction. That's it. You really don't have anything to be worried about.
When you looked at the Form, did you notice on page 3 of the instructions where it says:
Exceptions. Cash is not required to be
reported if it is received:
* By a financial institution required to file
Form 104, Currency Transaction Report.


Banks do not file Form 8300. They file Form 104 which has a different definition of what constitutes a reportable transaction. And in any case, Form 8300 is filed by the receiver of the cash, not the sender.

The reason that they do not consider personal checks "cash" is because they can be traced to a specific person's account. Money orders, cashiers checks, etc can be bought anonymously.

missiondeal said: [Q]Heard of Patriot Act buddy! Welcome to America!

You're confusing your wars. The $10k wire transfer rule is an artifact of the "war on drugs," not the "war on terror."

Conambo said: [Q]I have to wire transfer $42k to a friend in Taiwan.

Need any more friends?

xoneinax said: [Q]davef139 said: [Q]wire 4 tradnsfer of 9999 and 1 of 2004, but seriouslyU seem to be joking, but that would definitely raise more eyebrows than just doing the full 42k at once. And since its a crime to plan wires as described above, you would have a heck of a explaining why you chose to conduct the 4 transactions in this manner.

Why is it a crime?

[Q]By far the most common reason for filing a SAR in the US is when a financial institution suspects its customer is trying to structure his transactions in a way so as to avoid a Currency transaction report being filed upon him. A CTR is required under the Bank Secrecy Act for any cash transaction or transactions greater than $10,000.

http://en.wikipedia.org/wiki/Suspicious_activity_report



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