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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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If more than $10,000 in cash is deposited to business account,

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If more than $10,000 in cash is deposited to business account, the bank report must file a CTR to IRS. Dose this reporting cause any issue on business tax return? And which industry type can be exempt from CTR report?

LEV :

Hi and welcome to Just Answer!


Any persons - not just banks - who receive more than $10,000 in one transaction or a series of related transactions, while conducting their trade or business, must file CTR report.


That report may be filed electronically.
If such report is filled - the business must notify its customer, in writing, by January 31 of the subsequent calendar year.


The fact of reporting doesn't affect income tax return filing - income tax returns are filed as usual and doesn't have any indication of such reporting.
The purpose of reporting large cash deposits is to target persons who evade taxes and those who profit from the drug trade and other criminal activities.
See details in this publication - http://www.irs.gov/pub/irs-pdf/p1544.pdf
There are some exceptions to Definition of Cash when reporting is not needed.
There is no industry type exceptions.

Customer:

okay, if our business deposits more than 10,000 to business checking account, the bank file CTR. Dose this CTR to irs affect our business tax return ? thanks

LEV :

The fact of filing CTR report does NOT affect your business income tax return - you will report your business income and qualified deductions as usual - no changes.

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