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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 Smiley Very Happy
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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.


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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.
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Re: Making $10,000 Payment and IRS?

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

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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.

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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.
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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?


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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.
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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.  

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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 Smiley Very 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.

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