How The Feds Dictate What You Do With Your Money

Thanks @OneEyedDiva I always read and appreciate your financial advice, a wise woman.
OneEyedDiva said:
~You can be charged with criminal activity if you decide to deposit $10,000 in increments even though no criminal act was intended.
It’s called Structuring." If you deposit $10,000 or more, the bank must report the transaction to the Internal Revenue Service, and you’ll need to explain where you got the money. Don’t even think about dividing the cash into smaller amounts to stay below this limit, because the IRS can investigate you for structuring, which is an attempt to prevent the bank from reporting your deposit. Structuring is illegal. Even if you earned the money through legal channels and paid the necessary taxes, the IRS can charge you with criminal activity and take your money."
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When I get cash I don't deposit in the bank, I put it into a safe and use it to pay people in cash. I don't think the IRS would find out about that. Not that I have or receive great quantities of cash. I can only think of paying someone more than $10K in cash once, it was to a contractor. Don't believe I have ever been paid more than $10k at one time.

Coming home from Venezuela once the customs people found something like 100,000 Italian Lira cash on me. I was planning a trip to Italy the next week. They held me until they were able to verify that at the exchange rate it was only worth about $1,000.
 

OneEyedDiva said:
~Limits your monthly transactions from an account.
”The federal rule, also known as Reg D, comes from the Federal Reserve Board and puts a limit of six transactions per month on certain transfers and withdrawals from your savings or money market accounts. If you go over the limit, the bank or credit union can charge you a fee, close your account or convert it into a checking account."
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I think the Fed got rid of that restriction in 2020, tho individual banks might still have limits and impose fees if we exceed them.
 
Harry Le Hermit said:
The auditor/clerk, etc. would be someone with legal standing by law to itemized contents of the safety deposit box.
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Exactly. The IRS would not get involved directly unless there was an ongoing investigation into the deceased. The U.S. bank/financial institution has a fiduciary responsibility to the deceased to attest that the contents of a safety deposit box are logged in at that point in time, to ensure that whoever is removing the contents will be able to show exactly what the contents were, to the heirs of said estate.
 
A lot of these regs are nets to catch illegal activity.
mathjak107 said:
many won’t allow gold not in the form of jewelry or collectibles either
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Wait. Are you saying people can't put gold jewelry or coins in some safety deposit boxes? That's hard to imagine.

Harry Le Hermit said:
Every time I used a safety deposit box, I never once recall someone standing around while I opened it. It was generally done in strict privacy. I do not understand why anyone would think there are actual limitations on items in such a box.
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Exactly my experience.

OneEyedDiva said:
I don't know what the rules are where your friend lives but here in Jersey, once a person dies, their SD box must be audited before their next of kin can go into the box alone. My mother and I encountered that situation after my father died
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My mother and I were both named on a safety deposit box. I accessed it without an issue after she died. No auditor, nor was I locked out.
I was also executor of her trust and estate, but it didn't come up at that point.
 
StarSong said:
A lot of these regs are nets to catch illegal activity.

Wait. Are you saying people can't put gold jewelry or coins in some safety deposit boxes? That's hard to imagine.


Exactly my experience.


My mother and I were both named on a safety deposit box. I accessed it without an issue after she died. No auditor, nor was I locked out.
I was also executor of her trust and estate, but it didn't come up at that point.
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I had to wait for an auditor before I could access my father's SD box. I believe it may have been in both my parents' names. You probably didn't need to wait for an auditor because your name was also on the box Star. Or it may have been the rules are different in your state...OR it could be both of those things.
 
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