Imagine opening up your door one morning to two agents of the IRS. They tell you that they have seized your checking account and the $33,000 in it, just because you made a “suspicious” cash deposit under $10,000. Not a good start to a day.
That’s just what happened last year to Carole Hinders, who runs a cash-only Mexican restaurant in Iowa. She wasn’t charged with any crime or even accused of anything. Hinders lost her money because of the size of her deposits.
Drug traffickers, money launderers, and even terrorists often keep deposits under $10,000 to avoid a regulation designed to sniff out illegal transactions. It just so happens that many legitimate businesses also deposit cash in large amounts less than $10,000.