Bank Secrecy Act Compliance - The $10, 000 Rule
The Rule states that any person who receives more than $10,000 in a single cash transaction, or a series of cash transactions, must report the exchange to the IRS. This includes businesses as well as individuals who engage in a transaction that results in the transfer of cash so long as the payment:
- Is over $10,000
- Received as:
- A lump some over $10k
- Two or more related payments in excess of 10K (combined)
- Payments received as part of a single transaction (or two or more related transactions) that exceed 10K in a 12-month period.
- Received in the course of trade or business
- From the same person (payer)
- Received in a single transaction or two or more related transactions.
