Is it true that banks notify the IRS when making a withdrawal of 10K or more for your savings account?
Cash transactions that exceed $10,000 are reported to the IRS data center. The reason for this is a legal requirement of the Bank Secrecy Act. This law is intended to help track drug and terrorist money. The bank will ask you for information when you have an applicable transfer. You'll know what they're doing.
If you are buying or selling a car, as an example, and you are withdrawing or depositing cash in excess of $10,000, that isn't a problem at all. It is your money. Don't expect the IRS to come knocking on your door because of this. If you deposit $11,000 every Monday into your personal account and you say you are unemployed, then you should be worried.
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Cash transactions that exceed $10,000 are reported to the IRS data center. The reason for this is a legal requirement of the Bank Secrecy Act. This law is intended to help track drug and terrorist money. The bank will ask you for information when you have an applicable transfer. You'll know what they're doing.
