What amount of money transfer triggers IRS?

Financial institutions must file a Form 104, also known as the Currency Transaction Report (CTR), for each wire transfer exceeding $10,000. This form provides detailed information about the transaction, including the sender and recipient's identities and the amount transferred.

The purpose of these reporting requirements is to enable the government to monitor and investigate potential illegal activities involving large cash transactions. By tracking these transactions, law enforcement agencies can identify patterns of suspicious behavior and take appropriate action.

The Bank Secrecy Act (BSA) of 1970 is a federal law that mandates financial institutions to comply with specific reporting requirements to the Internal Revenue Service (IRS). This legislation aims to prevent money laundering, tax evasion, and other financial crimes.

One of the key provisions of the BSA requires financial institutions to report certain transactions to the IRS. These transactions include wire transfers exceeding $10,000 in value.

In addition to wire transfers, the BSA also requires financial institutions to report other types of transactions, such as cash deposits and withdrawals exceeding certain thresholds. These reporting requirements help to ensure that financial institutions are not being used to facilitate criminal activities.