This is exactly what I would do if I were in your situation. Unfortunately, in your case, it is a large amount. And it really may cause the IRS to send you a letter asking for more information. It's not exciting but you should prepare for it.
The upside is that this is a new program so the IRS is aware that it isn't perfect and that a wide net like this is going to catch a bunch of people using the online systems to move their personal money around. The downside is that you have to be prepared to prove it. So cover all of your bases NOW, while it is fresh, all the documents are readily available and you can remember exactly what you did.
Get digital copies of every transaction that added up to that 170K. Prepare it as though you were going to be explaining to an idiot how you moved that money around. When you show it to someone it should really be obvious. "This is where I deposited $2,000. Then I took one thousand back out. I did that 170 times. Here they all are. See?"
Save it to your hard drive and be ready to print all of it and mail it to the IRS if you get a letter. But most importantly remember that YOU ARE DOING THE RIGHT THING. This reporting requirement is weird. And you don't have any taxable income that comes from moving money you already paid taxes on around.
@kverbeek
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