Banking… how things have changed

[MossRoad]

I just had someone pay me cash for a trailer I sold.
So if I deposit the cash, is my bank going to report me and am I potentially going to be labeled a “criminal”?

By law, banks are required by the IRS to report any transactions of $10,000 or more.

By law, any person or business that receives any payment of $10,000 or more also has to report it.

Understand how to report large cash transactions | Internal Revenue Service

FS-2021-03, February 2021 — Although many cash transactions are legitimate, the government can often trace illegal activities through payments reported on complete, accurate Forms 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Here are facts on who must file the...

www.irs.gov

 

[Torvy]

By law, banks are required by the IRS to report any transactions of $10,000 or more.

By law, any person or business that receives any payment of $10,000 or more also has to report it.

Understand how to report large cash transactions | Internal Revenue Service

FS-2021-03, February 2021 — Although many cash transactions are legitimate, the government can often trace illegal activities through payments reported on complete, accurate Forms 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Here are facts on who must file the...

www.irs.gov

Banks must also report any 'suspicious' activity. A SAR must be filled out for any number of transactions that may be recommended by the FEDs as important to combat money laundering or other illegal activity. There is no magic number for deposit amounts or frequency. We had to have semi-annual training to spot or identify 'suspicious ' activity. Also, were subject to oversight by something like 5 different federal agencies that audit and slap the bank if they fail to report. This leads to over reporting as most big banks would rather have customers leave than be fined or shut down by regulators.

 

[ultrarunner]

When I bought I needed $5500 and change to close escrow...

All checks have rather lengthy Title company holds so I said I will just go to bank and get cash...

Escrow officer said cash is not acceptable.

After getting a hard no I learned Wire Transfer was the only way to close on time since cash not accepted.

Wire transfer came with fees on both sides... but really had no other choice.

 

[kenmac]

Last week, I transferred 44K from one credit union to another to purchase a vehicle. Money was there in 24 hrs just like they said. No questions asked !

 

[two_bit_score]

I thought if I ever found a suitcase full of cash (No Country for Old Men style) I would just use it to live off of and for upgrades to my house.

Just be sure to go through it first and take the tracking device out.

 

[two_bit_score]

When I bought I needed $5500 and change to close escrow...

All checks have rather lengthy Title company holds so I said I will just go to bank and get cash...

Escrow officer said cash is not acceptable.

After getting a hard no I learned Wire Transfer was the only way to close on time since cash not accepted.

Wire transfer came with fees on both sides... but really had no other choice.

They love to get you coming and going. Especially when you have no choice.

 

[2manyrocks]

A Nashville title company wired funds to a thief after falling for an email telling them that the wire instructions had changed. Standard malpractice insurance wouldn't cover the loss unless they had a specific endorsement for computer related fraud or something to that effect. The local title insurance companies started including computer fraud in their annual title insurance underwriting seminars.

 

[two_bit_score]

A Nashville title company wired funds to a thief after falling for an email telling them that the wire instructions had changed. Standard malpractice insurance wouldn't cover the loss unless they had a specific endorsement for computer related fraud or something to that effect. The local title insurance companies started including computer fraud in their annual title insurance underwriting seminars.

Kind of satisfying to see a title company get stung on a coverage gap when they are so known for nit-picky exclusions.

 

[ultrarunner]

At one time I bought a home built in 1922 from the original owner widow which I still have... she was newly married at 18 with her husband 40 in 1922.

New price $2500 with $20 US Gold as the down payment and a 10 year mortgage through the builder.

The Depression came along and no matter what they were not going to lose the house... Vegetable garden, taking in laundry and a boarder, etc...

Very different than modern times where it's just a business move to walk away...

My then next door neighbor bought in the Depression... the bank had a list of home offerings at the entrance to the bank... he and his then girlfriend had been seeing each other for sometime... she proposed 3 years into the Depression and he said I guess we should look for a place and she said you have $2000 to buy a house... he said I have been saving every penny I've earned... she got so mad saying we could have already been married if I had known you had money!!!

Anyway they went to the bank and the bank officer started saying they would need a large down payment, excellent credit and employment...

Albert said we like this one and pulled out $2000 cash and bought it on the spot.

He worked at a company then called Victor Talking Machine...

For years after the bank gave them the VIP treatment...

2 bedroom 1 bath 1000 square feet bungalow on 4800 square feet city lot.

I can't even imagine what would happen pulling out cash to buy a home in 2023...

 

[dmccarty]

...

Anyway they went to the bank and the bank officer started saying they would need a large down payment, excellent credit and employment...

Albert said we like this one and pulled out $2000 cash and bought it on the spot.

...

I can't even imagine what would happen pulling out cash to buy a home in 2023...

In some jurisdictions, SWAT would show up and the cash seized since it is obviously from a criminal enterprise....