[cathy77533]

A friend of mine told me if I take ten thousand dollars or more out of my bank, I have to tell the government why I took it out and what I did with it?

I never heard of such a thing.. I bought a brand new car a year ago, and I took 30,000.00 out of my bank to buy it, my accountant NEVER told me I had to report it to the government.

Please advise.

Thanks so much

[MLSNC]

No, you are not responsible for filing Form 8300. However, if you paid in cash the auto dealer is responsible for reporting the transaction to the IRS.

The IRS reviews these and should they look at that transaction, you would be responsible for showing the IRS where the money came from.

[cathy77533]

Well if you p aid in cash, it's obvious you took the money out of the bank and the taxes on the money's interest was already paid.. My question was, do I have to tell the government everything I buy that cost 10,000.00 or more weather it was in cash, check or debit or credit card? So in other words, I take a 20,000.00 trip on my HARD EARNED money, I'm suppose to tell the IRS I went away? Yes, I know we have to pay taxes on the interest earned.

[MLSNC]

No, individuals do not file the Form 8300. Only businesses are responsible for this.

Any business that receives $10,000 or more in cash in a transaction is responsible for reporting that transaction. If you pull $20,000 out of your bank and use it for various purchases so that no one purchase was over $10,000, there would be no reporting by any of the businesses.

The IRS wishes that every purchase made with cash was made from an offsetting bank withdrawal, but that is not always the case.