Making $10,000 Payment and IRS?

[GregB]

CASH is the important word here. You are not paying in a pile of $100 bills, you are writing a check or doing an EFT transfer.

The requirement is for actual CASH transactions with US currency, as in green bills or a BIG pile of coins.

[webhopper]

The IRS Doesn't typically step in unless you make a large deposit with cash... They just don't do it... As long as this payment is coming from your checking account you should be fine.... The only time the IRS is notified is when you make over $10k in cash deposits to a checking account... they just want to be sure you aren't laundering or running a cash business without paying tax on your net business income.  This year I've made about 6k in cash deposits (selling items from a business desolution).  I plan to claim these on my Schedule C as income, So I read up on the rules as far as banking and cash etc.....   

Since some of this cash was going to be assisting me with buying a house..  The mortgage company wanted a Profit / Loss Statement for dissolving my business, but other than that I've had no issues. As long as this money is legit, and you've got a legititmate reason for having it, there shouldn't be any red flags or tape for you to wade through.

[Anonymous]

Thank you everyone. I'm sorry, I was worried if I was involved in IRS fraud if I didn't file a report to them. Like I say, I really didn't want legal issues or fraud charges against me because I didn't know. So the payment is fine, I thought the payment was cash too since it is bank money. So will I have IRS troubles in my bank unless I report it? I got $6k from PayPal sale I did and the rest was basically my own savings and money. So I must report my bank to IRS? I understand I don't report my CC payment but what of my bank? Is PayPal consider cash deposit? Sorry I am just confused about this. I never had so much money before so I am now worried of IRS.

[Anonymous]

Hey Lel moderator, the link is http://www.irs.gov/businesses/small/article/0,,id=148821,00.html Thank you.

[Lel]

"Cash" can be defined a little more broadly to include things like cashier's checks, money orders, or traveler's checks, depending on the context in which they are used. 

[Lel]

IMO, this wouldn't apply to you.  Your proceeds from the sale of your furniture is <$10,000.  With regard to the payment to Amex, this form doesn't apply since you're making the payment, not receiving it.

Good job on paying down your debt!

[Anonymous]

Typically, it only applies to "cash" though, not checks.

Even though money orders and treasurer's checks CAN be considered cash, there's a paper trail that can be followed if need be.

Not with cash. Which is why I asked him if this was to be a "cash" payment, but I failed to read who it was paying for.

It's from one account to another, I doubt he has anything to worry about.

The 10K rule seems to only apply in banks when doing a withdrawal/deposit/exchange of "cash"  for anything over 10K and 1 penny (10K is actually fine, but a penny over that, and a report is being made. And if you start structuring, you are liable to have a SARs reported, but that's a whole other issue and nothing to do with this.

[Anonymous]

Thank you everyone. I feel good now and will make this great payment to American Express. I can't believe it, finally paid $0 balance to my last debt. Thank you to everyone for your help Time to pay off.

[jumpinjax]

What your referring to is IRS Form 8300 - generally if you bring cash to a bank or as a business you collect more than $10k, then this form must be filled out and sent to the IRS.  However, this form is mundane and should pose no worry to you since the Treasury receives countless forms 8300 per day.  Plus they usually look for evaders from the perspective of reporting requirements.

As for your payment, I recognize your concern, but I'm sure your deducting this ACH from your account to the CCC.  In this case, no reporting is done.  So no worries, if that is what your asking for.  Go ahead, make the payment, and relax!!!

Good Luck!

[veracious]

As others have stated, if you paid for a $10K wedding or a $10K honeymoon vacation would you have to report it to

the IRS?  I don't think so, but I've been wrong before.