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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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How much cash can an individual deposit per year or per transaction

Customer Question

How much cash can an individual deposit per year or per transaction without triggering an IRS or bank inspection? I've read that an individual can deposit up to $10,000 before this could happen. My parents and my fiance's grandpa want to gift us around $22,000 in total, and grandpa feels more comfortable with cash. He doesn't like banks apparently. What can you tell me?
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.

Hello and thank you for using Just Answer. To prevent money laundering, any transaction that adds up to $10,000 or more are required to be reported as "significant cash transactions" to the Financial Crimes Enforcement Network (FINCEN). FINCEN can report the suspicious monetary activity to many different government agencies, including the IRS.

 

Whether the IRS will audit you or not is dependent on whether FINCEN reports the transaction to the IRS.