> knowing that the IRS flags everything over 10K

This is false.

Just deposit whenever convenient.

> thus she was sure to leave us the money in two parts instead of one lump sum check.

Presented checks are recorded in bank statements. There is a record of the transaction whether it's a $3000 check or a $8000 check. It doesn't matter whether they are deposited separately or together.

Note: If your bank doesn't allow you to deposit more than a certain amount per day through mobile phone, splitting the checks won't get you into any trouble. Checks aren't physical cash and are recorded regardless of amount.

What do you think happens when you deposit more than 10k in a bank account?

Deposit them both at the same time.

Splitting up deposits to avoid IRS reporting requirements is called structuring and is a felony.

There was no reason for grandma to split this up into two parts.

Grandma wasn't thinking ahead, Grandma was trying to structure.

Is it two checks delivered to you at the same time or two checks delivered to you spaced apart? If the former, deposit them at the same time. If the latter, deposit them when you receive them.

When you make large deposits the IRS just requires that you fill out a form. It is not a punishment. It is a piece of paper. Structuring your deposits to avoid filling out the form is an actual crime. Don't do a crime when the easy alternative is to fill out a form.

Just deposit the money. You can get in trouble for "structuring" if you try to time your deposits in ways that avoid reporting. This is actually against the law. You won't pay any taxes on any of it regardless. At most, the bank will ask where the money came from. You tell them, and it's done.

What form is that? People make 5 and 6 figure deposits routinely without filling out forms.

This isn't a factor. This wouldn't be taxable to the recipient.

Misinformation all around.

As everyone has said, this is silly. The IRS does not flag everything over $10k. Furthermore, if it’s inheritance, no one would owe taxes on such a small amount anyways.

It’s the latter- one month apart. I didn’t know anything about structuring or that you could get in trouble so thank you everyone! Definitely would rather fill out a form than commit a crime lol

If these are checks, you won't even have to fill out a form. $10,000 isn't a lot of money in the grand scheme of things. Bank employees wouldn't have time to do anything else if they had to fill out paperwork for every $10,000 check that got deposited.

The $10,000 reporting requirement only applies to cash transactions.

Yeah, I was unclear, mainly in an attempt to reinforce that trying to outsmart the system is just not worth it. To be more clear, if you deposit $10K or more in cash, form 8300 needs to be filled out (I think maybe the bank will take care of it). And constantly making cash deposits of $9K is considered structuring which is a crime subject to civil and criminal liability (as opposed to a one off deposit of $9K). Depositing a check is in fact different. And also, your state either has inheritance tax or it doesn't (6 do), the # of checks doesn't change what the state will take from you.

Probably not even a form. Presumably the checks will have different issue dates so unless they are literally two checks for $9,999.99 each, I can't imagine anyone will even question it.

I genuinely wouldn’t know as I never have- I make about $3,200 per paycheck and while my bonus is 10% of my income, it’s obviously taxed highly so I’ve never had an amount above $6K hit my bank account at once.

Nothing happens. Deposit the money.

The answer to break the suspense is 'absolutely nothing'. Currency transaction reports, which is what your grandmother was misinformed about, are for cash transactions, and even then it has nothing to do with taxes or audits but money laundering.

Inheritance isn't taxed federally unless you are talking huge dollars. The purpose of informing the IRS on deposits over 10k is to look for patterns that may show tax fraud, not occasional stuff. EDIT: thanks to the comments - I remember now it is cash deposits that have to be reported.

Over the past several years I've been involved with finalizing several family estates and never had a problem with larger transfers of funds.

EDIT:. Just a notion, first if she is writing the checks, it's not inheritance but gifts. Many older people are still under the incorrect understanding you have you can only give 10k a year without gift taxes. The level is now over 11million over her lifetime where reporting is required if over 15k in a single year. Did the checks have dates in two separate calendar years?

It’s automated. The teller checks a box and the form auto populates and the CTR gets filed with FinCEN.

If the bank software or the teller suspects anything suspicious, a second form (SAR) gets filed with FinCEN.

Both forms get electronically sent to the Treasury FinCEN office in Detroit (or wherever the Treasury servers are located). The server files it in a digital filing cabinet where its promptly indexed and ignored.

FinCEN likely has an AI pattern recognition layer that trolls the index for patterns. If one is discovered, software likely alerts an analyst/investigator.

18 or so million CTR’s get filed per year, along with 3 million or so SAR’s. The first 3 layers of review are all gonna be software.

It also matters if it is a personal or business account, and what is normal for your usage. I deposit large amounts of cash fairly regularly for work and I've never once had to do paperwork for it. We manage rentals and some tenants pay cash. I have had days I deposit over $10,000 in a day. And I have had weeks where I deposited multiple deposits less than $10,000 that added up to more than 10,000. It isn't structuring because it is normal course of business.

And yes I know that doesn't apply in this case because this person is depositing into a personal account. I just wanted to make the point that frequent deposits of less than 10,000 in cash is not necessarily structuring.

Per the IRS website: Transactions that require Form 8300 include, but are not limited to: escrow arrangement contributions, per-existing debt payments, negotiable instrument purchases, reimbursement of expenses, making or repaying a loan, sales of goods or services, sale of real property, sale of intangible property, rental of real or personal property, exchange of cash for other cash, custodial trust contributions.

"Who Must File: A "person" who must file From 8300 includes an individual, company, corporation, partnership, association, trust, or estate. You must file Form 8300 with the IRS if any part of the transaction occurs within any of the 50 states, the District of Columbia or a U.S. possession or territory. . ."

You don't have to file it on the spot; it needs to be filed by the 15th day after the cash deposit is made. And the bank will make separate reports of large deposits to the IRS.

Interesting. The IRS has never said a word to us in 20 years. We've probably done 250 or more cash transactions over that time that were over $10,000 or that added up to over $10,000 over the course of a week. Never filled out a form 8300 even once and never heard a word about it.

Your grandmother only died once and left behind one estate. That's what the IRS cares about in terms of the inheritance.

I occasional move 20 times that and nothing happens.