Reply
New Visitor
GoldenArm
Posts: 7
Registered: ‎02-21-2012
0

Making $10,000 Payment and IRS?

I'm about to make a $12,000 payment to my American Express and have never done this before. I saw some info about cash and $10k and having to report it to the IRS? Does that apply to CC payments too? This is a once in a lifetime moment for me. I have never had this much cash before and decided to wipe my debts. I sold some furniture and made $6k and had the other half in savings. I'm new here, thank you for helping me out :smileyvery-happy:
New Member
AsianBuildingCredit
Posts: 10
Registered: ‎02-16-2012
0

Re: Making $10,000 Payment and IRS?

Since it's a legitimate payment for a credit card bill, I do not think you will have to report to IRS.


Starting Score: 710
Current Score: 710
Goal Score: 850


Take the FICO Fitness Challenge
New Visitor
GoldenArm
Posts: 7
Registered: ‎02-21-2012
0

Re: Making $10,000 Payment and IRS?

I read about cash transactions $10,000 and higher. So I want to be sure. I can't afford to contact tax people over this. I just use H&R Block to file every year. If anyone knows, thank you. I don't want IRS and legal issues over this $12k payment.
Regular Contributor
cutemarty1
Posts: 213
Registered: ‎02-03-2011
0

Re: Making $10,000 Payment and IRS?

whew! that's a huge tax! You might have made a lot last year :smileyhappy:  The highest due I had was 9k.  This year I got a refund finally after purposely overpaying it. I got traumatized.

My TL : BCE AMEX 24k / Home Depot 16.5 K / CSP 16.5k / Barclays Arrival MC 15k / BoA 123 14k / Discover 13.5k / Citi World 12.8k / CU Visa 11k/ Nordstrom Visa 10K / Freedom 10k / Citi AA 9.1k / Macy's Store 3K / Best buy 2.4K / BBRZ Gold 1.4K / AE 1.4k / Express 1.4K/
Blogger
FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
0

Re: Making $10,000 Payment and IRS?

Are you making this payment from one card to another?

 

The only time I've heard about the 10K rule being applied is when cash is physically brought into a bank or taken out.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

New Visitor
GoldenArm
Posts: 7
Registered: ‎02-21-2012
0

Re: Making $10,000 Payment and IRS?

From checking account. I will make online payment on amex web site. I don't even know if I have to file IRS about this because my checking now has over $10k. I am worried because I can't afford legal fees right now or have IRS fees waiting for me.
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Making $10,000 Payment and IRS?

I've never heard of this and I've made large payments to my credit cards, over $10K.  Now, I'll add the caveat that you can fill a book with things that I've never heard of that are nevertheless true, but I don't think there's an issue with reporting to the IRS when you make a credit card payment.  If you're overly concerned, can't you just split it into two payments?


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
New Visitor
GoldenArm
Posts: 7
Registered: ‎02-21-2012
0

Re: Making $10,000 Payment and IRS?

I checked IRS site, it talks about cash payments that exceed $10k but also it is illegal to circumvent the law by making transactions fall under like $9,999. It says you can get legal issues if you defraud them from proper reporting. I just don't know what to do now and wish I never put over $10k in my bank.
Moderator
pizzadude
Posts: 9,674
Registered: ‎01-28-2010
0

Re: Making $10,000 Payment and IRS?


GoldenArm wrote:
I checked IRS site, it talks about cash payments that exceed $10k but also it is illegal to circumvent the law by making transactions fall under like $9,999. It says you can get legal issues if you defraud them from proper reporting. I just don't know what to do now and wish I never put over $10k in my bank.


You do not have anything to report, as this is not a "cash" transaction ~ "cash" meaning physically depositing dollar bills & coins exceeding $10,000.  

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Moderator Emeritus
Lel
Posts: 5,268
Registered: ‎03-18-2008
0

Re: Making $10,000 Payment and IRS?


GoldenArm wrote:
I'm about to make a $12,000 payment to my American Express and have never done this before. I saw some info about cash and $10k and having to report it to the IRS? Does that apply to CC payments too? This is a once in a lifetime moment for me. I have never had this much cash before and decided to wipe my debts. I sold some furniture and made $6k and had the other half in savings. I'm new here, thank you for helping me out :smileyvery-happy:

I don't think this applies to paying bills to merchants.  I think you have to report a cash transaction of >$10,000 if you receive that amount as part of a business transaction.  But for paying a bill to Amex, this wouldn't apply.

 

Just to be certain, could you post a link to the IRS website that you think might apply to your situation?

 

I've also made some large "cash" payments, both to CC companies and to contractors.  I've never been told that these need to be reported by me to the IRS, but I would assume that the contractors probably had to.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}