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Home >> Checks/Money Orders >> Checks You Received
Many Check Deposits: IRS OK with That?
I have a small business and have a DBA checking account. We coach basketball to kids. How much in checks can I deposit before the IRS is notified or flagged? We have about $100K in checks and do not want to open a business account because we spend 95% of the money.
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 Banks have to report transactions in currency that exceed $10,000 in a business day. That's the law, and banks would love dearly to be able to cut back on the numbers of reports they file. They certainly don't have any desire to report other transactions, so lest there be any mistake, "transactions in currency" means only transactions that are conducted in currency and coin, not checks, wire transfers, money orders, cashier's checks.
Whether or not you can continue to operate your business through a personal account is between you and your bank. Many banks have policies requiring their customers to keep business transactions out of their personal accounts, so don't be surprised if your bank, once it realizes what's going on in your account, asks you to open a business account, and for whatever it's worth, banks don't report transactions in business accounts to the IRS unless, of course, they are currency transactions exceeding $10,000 in a given business day.
Take a look at a brochure produced by the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN). Contact an accountant to discuss the proper way to report your business income and expenses on your personal tax returns.
Published on BankingQuestions.com 4/13/09
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