Are you new to Zacks? Start here. Keep me logged in What does Remember Me do? Cashiers must report certain transactions to the federal government. If you withdraw large amounts of cash from savings, the Internal Revenue Service doesn't particularly care. You can do whatever you want with your money, as long as you pay taxes for it, and as long as what you do isn't illegal.
While the IRS does not monitor your transactions, U.S. federal law requires your bank to report to the Financial Crimes Compliance Network if you participate in certain transactions, even if you don't intend to harm anyone, due to terrorist concerns and money laundering issues. Even the federal government understands that some companies carry out large cash transactions naturally. If banks were to report every such transaction for these commercial companies, they would be buried in the paperwork and it would be blatantly unfair to their customers.
FinCEN exempts some commercial and retail accounts from reporting requirements. If you are the owner of such a business and are not sure if you qualify for the exemption, check with your bank or lawyer to find out where you stand. Beverly Bird has been writing professionally for more than 30 years. She specializes in personal finance and bankruptcy, and writes as a tax expert for The Balance.
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