Do banks have to report all deposits of $10,000 or more to the IRS or is it only if it's a cash deposit?
Banks are required by law to report cash transactions greater than $10,000. While these are processed through the IRS, it isn't a matter of the IRS looking for tax evading customers. These reports are used to detect illegal activities such as those laundering drug money and terrorist financing. A person selling a car and depositing $12,000 in cash or withdrawing that $12,000 to buy a car, should have no worries.
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Banks are required by law to report cash transactions greater than $10,000. While these are processed through the IRS, it isn't a matter of the IRS looking for tax evading customers. These reports are used to detect illegal activities such as those laundering drug money and terrorist financing. A person selling a car and depositing $12,000 in cash or withdrawing that $12,000 to buy a car, should have no worries.
