Legal Question in Banking Law in New York

The Bank Secrecy Act- received a large sum cash amount for money owed to me (no legal agreement/contract) when someone recently passed away, not received from inheritance or estate. If I deposit the lump sum, it would trigger the bank notifying the IRS. I shouldn't worry but do. What is the process and should I be worried? Is there something I should be doing instead?


Asked on 9/06/21, 9:06 am

1 Answer from Attorneys
Locksley Wade Law Office of Locksley O. Wade

A common misconception is that a bank notifies the IRS when there is a large cash deposition made to an account. It is the Secret Service, an arm of the U.S. Treasury Dept. that gets the notification through a filing a currency transaction report. (Note: the actual reporting agency may have changed but it is still under the U.S. Treasury). The Secret Service does more than guard the President of the U.S. The IRS gets notified of the interest that is paid on the account just as they do for all accounts. There is no need to worry unless you are laundering money in to the banking system.

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Answered on 9/06/21, 9:19 am


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