Posted on 06/11/2005 4:42:00 PM PDT by mlmr
Do banks collect all infomation from checks cashed if you are a customer? IOW...if one cashes a 15 dollar check, is it put into the same system as one's own checks that are copied and stored?
When I used to work for a bank a million years ago we used to photo every check that went through the place.
They seem to be inputting the check into the computer and attaching it to my account.
Yes. Every transaction is available to the IRS and the FBI, and they have plenty of bank examiners to deal with the info. Where do you suppose all those business majors end up?
I think the bank reports large transactions like 8,000.00 or more deposited or cashed, etc. If you cash or deposit 2 - 4,000.00 amounts in one week, it would not be reported. The number may be larger, like 10,000, but it is somewhere thereabouts.
It has something to do with terrorism. My dad had saved a large amount and he deposited it in his account so he could by stocks with it. The bank can't give you info like that, but he knew to make two deposits like 6,000 each, I beleive. This was a month or two ago.
That's called structuring. It's a federal crime. A single cash deposit for the whole amount would, on the other hand, have been perfectly legal but reported by the bank.
Does it depend on intent?
My brother works for a bank. Any cash deposit over 10 grand must be reported to the IRS, by law.
No, they don't have ANY bank examiners. The FDIC does, the states do, the Fed does. Of course, all of the relevant info finds its way into FINCIN.
So if I go into a bank and cash a 15 dollar check that is written to me either one of the bank's accounts or another bank's account....it is tracable to me by the IRS?
There was a time when I thought about being a Federal bank examiner. GS-5, the position description may not have said Bank Examiner, but it was FBI and it was bank books.
Yes, but the intent is to strucure the transactions so as to stay below the reporting limits. And they are likely to presume intent if things happened that way. If you have a good explanation as to why it happened that way, then you may have a good defense.
From the explanation given above, it sounds like he clearly was trying to avoid the reporting requirements.
Should be, although the name might not be unique, your bank would have your account number. Even though my music career is not full-time pro, I report my music income on the income tax deal even if the employer obviously did not report since they didn't bother to know even my SS number. IRS could track that down, and even though it is not worth their time to do so, I would save them the trouble.
You seem mighty worried over a $15 check...why???
Yeah, maybe so if it was for a single stock transaction. If it happens regularly there could be a problem. If it was the same day, but different stock transactions at different times, it should not be a problem.
A lot of banks now won't cash a check for you if you don't have an account. For example, if I wrote a check to you on my bank, and you took it there to cash it, they would turn you away. You would need to take it to your bank, where they would first make sure you had money in your account to cover it if the check turned out to be bad (and would might put a hold on the money in your account until the check cleared).
If you don't have a bank account, you would have to go to a check cashing business which would charge you a significant fee for assuming the risk.
Banks do not give every transaction to the IRS. These are but a few samples.
Each year they give the customer 1099s for interest income on each account held, which also goes to the IRS.
If you deposit or withdraw "more than $10,000 they file a CTR -Currency Transaction Report with the IRS--but you know they do that as you are asked to sign the form. If the bank "suspects" you are "structuring" lower amount cash transactions, they can report you--without you knowing it.
The IRS can print what they call an "IRP"--Information Return Program, which lists all banks, brokers, house sales, etc etc at any given time.
If the IRS suspects a "taxpayer" is cheating on his taxes big-time by cashing his/her customer/client checks for cash, rather than depositing them in accounts--the IRS can and does supoena the taxpayers' bank records including such undeposited counter cash backs.
If anyone is doing this sort of thing, I know some excellent criminal tax attorneys in Southern California. haha
PS--Cashing out the likes of gift or refund checks draws no attention. Everybody does it...
"They seem to be inputting the check into the computer and attaching it to my account."
Yeah, they do that. My bank also deducts the amount of every check I write from my account. It's scary what they can do.
;^)
That can be downright frightening at times.
Hhhmmm, that explains why so many business establishments in town keep posting my checks on their walls. I thought it was because they were thrilled to have my autograph.....
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