Hello,
I made cash deposits throughout 2019 that totaled to about $12,000 into my checking account. My understanding is the Bank reports these deposits if over $10,000 to the IRS. If so, does this mean that I am flagged for an audit? I am an individual. Don't own any trade or businesses.
Appreciate the clarity. thank you!
I think it is if only one deposit is over 10,000. Not the total for the year.
May I ask why you are depositing cash? Are you getting paid in cash? That may be self employment income and you will need to file as a self employment business on schedule C in your individual tax return.
Thank you for both answers. I did think as well that it was for 1 deposit that is 10K or more but wanted to confirm.
They were deposits from gifts and/or cash deposit from my line of credit account for cash being immediately available in my checking account.
So if deposits in one cash transaction is 10K or more than I assume IRS will need to ensure thats reported as income and pay tax on it?
Thank you