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If you deposit more than 10k the IRS simply gets automatically notified. No one calls you to ask where you got the money. The IRS actually expects you to repo

If you deposit more than 10k the IRS simply gets automatically notified. No one calls you to ask where you got the money. The IRS actually expects you to report income earned from illegal activities, they _explicitly_ state this in Publication 17.

dawnerd 2y ago
And even then you don’t have to tell them it’s illegal. Just what you earned. Frankly they don’t care where it came from as long as you report and pay.
- thaumasiotes 2y ago
  No, you have to specify where it came from. You don't have to say what crime you committed, but you'd list the income under "income from illegal activities".
  - dawnerd 2y ago
    It’s very loose. You can just say cash and that’s fine.
    - thaumasiotes 2y ago
      > You can just say cash and that’s fine. Cash isn't income. It's an asset. You don't even report assets. You report income, and you have to specify where it came from.
      - dawnerd 2y ago
        If cash is your income yes you do. Source, I have.
- oytis 2y ago
  TIL. How do they check that the sum you specified is correct though?
  - AnthonyMouse 2y ago
    Suppose you knit mittens and sell them for cash out of your garage. The IRS expects you to report and pay taxes on the income. How do they check that the sum you specified is correct?
    - oytis 2y ago
      Not sure how it works in the US. In Germany you are supposed to have a cash register or issue an invoice on each purchase, and sometimes (though really rarely given lack of personnel) they can randomly check of your reported numbers make sense together.
      - AnthonyMouse 2y ago
        It's not clear how that sort of thing would even help, it seems like just a trap for the unwary. If you're an honest person selling your mittens and paying your taxes without knowing you're supposed to have a cash register, you could get unlucky and get in trouble for innocuous behavior. If you're a drug dealer then you get a cash register and ring up all your drug sales as mitten sales. Or, if someone wanted to report less income, they would have a cash register and then use it to ring up less than all of the sales. Whether or not you have the cash register can't distinguish these and is correspondingly pointless.
arcticbull 2y ago
A SAR or CTR gets filed with FinCEN

dawnerd 2y ago

And even then you don’t have to tell them it’s illegal. Just what you earned. Frankly they don’t care where it came from as long as you report and pay.

thaumasiotes 2y ago
No, you have to specify where it came from. You don't have to say what crime you committed, but you'd list the income under "income from illegal activities".
- dawnerd 2y ago
  It’s very loose. You can just say cash and that’s fine.
  - thaumasiotes 2y ago
    > You can just say cash and that’s fine. Cash isn't income. It's an asset. You don't even report assets. You report income, and you have to specify where it came from.
    - dawnerd 2y ago
      If cash is your income yes you do. Source, I have.
oytis 2y ago
TIL. How do they check that the sum you specified is correct though?
- AnthonyMouse 2y ago
  Suppose you knit mittens and sell them for cash out of your garage. The IRS expects you to report and pay taxes on the income. How do they check that the sum you specified is correct?
  - oytis 2y ago
    Not sure how it works in the US. In Germany you are supposed to have a cash register or issue an invoice on each purchase, and sometimes (though really rarely given lack of personnel) they can randomly check of your reported numbers make sense together.
    - AnthonyMouse 2y ago
      It's not clear how that sort of thing would even help, it seems like just a trap for the unwary. If you're an honest person selling your mittens and paying your taxes without knowing you're supposed to have a cash register, you could get unlucky and get in trouble for innocuous behavior. If you're a drug dealer then you get a cash register and ring up all your drug sales as mitten sales. Or, if someone wanted to report less income, they would have a cash register and then use it to ring up less than all of the sales. Whether or not you have the cash register can't distinguish these and is correspondingly pointless.

arcticbull 2y ago

A SAR or CTR gets filed with FinCEN