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Received a wire of over 10k - What will the IRS be sending me? (1 Viewer)

skycriesmary

skycriesmary

Climbing up the Walls
I understand that the IRS is automatically notified of any wire transfer of 10k or more. Any idea what communication I'll receive from them in regards to this? Or what form I'll have to fill out? The 8300?  I've googled, but didn't find a concise answer.

The owner of the company I worked for wired back pay to me, without going through ADP, so no taxes were taken out. I'm assuming I'll have to put this on my schedule C as additional income, and be taxed accordingly? 

TIA...

 
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skycriesmary said:
I understand that the IRS is automatically notified of any wire transfer of 10k or more. Any idea what communication I'll receive from them in regards to this? Or what form I'll have to fill out? The 8300?  I've googled, but didn't find a concise answer.

The owner of the company I worked for wired back pay to me, without going through ADP, so no taxes were taken out. I'm assuming I'll have to put this on my schedule C as additional income, and be taxed accordingly? 

TIA...
Click to expand...
as a bank employee, i do not believe you receive anything.  banks are required to complete CTRs on any wire over 3k and any transaction over 10k.  the CTR is electronically sent to the FinCen.  FinCen won’t send you anything.  They will simply note who you are, bug your phones and surveil you and your love ones until they can extort you.

 
Chemical X said:
as a bank employee, i do not believe you receive anything.  banks are required to complete CTRs on any wire over 3k and any transaction over 10k.  the CTR is electronically sent to the FinCen.  FinCen won’t send you anything.  They will simply note who you are, bug your phones and surveil you and your love ones until they can extort you.
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Wonderful. I'm not trying to getaway with anything, just trying to  figure it out if the amount doesn't end up on my W2, how I claim it correctly. i.e. which hoops I jump through. 

 
skycriesmary said:
Wonderful. I'm not trying to getaway with anything, just trying to  figure it out if the amount doesn't end up on my W2, how I claim it correctly. i.e. which hoops I jump through. 
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you may be asking a different question.  is this compensation?  seems like a cash transaction, not reportable imo.  doesn’t mean you are not being surveilled.

 
Chemical X said:
you may be asking a different question.  is this compensation?  seems like a cash transaction, not reportable imo.  doesn’t mean you are not being surveilled.
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Yes, it's compensation, which is normally reported through ADP. We however are not using ADP any longer. Sloppy accounting, to say the least. So, you're implying FinCen won't ask me for anything, but maybe see if I report it on my own? Probably not in your wheelhouse to know the answer to that. Thanks for your feedback so far.

 
1099 is what you should receive and yes, just show it on schedule C or simply as misc income depending on what exactly it was for. 

 
Creating a thread on a public forum asking how to properly be taxed is a shrewd move.  That way they see you were trying to make it right and later "just forgot".

 
The IRS won't send you anything.  It will be noted, but that's about it.  For this to get impacted by tax laws, your employer would have to send you a 1099

 
Chemical X said:
you may be asking a different question.  is this compensation?  seems like a cash transaction, not reportable imo.  doesn’t mean you are not being surveilled.
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This.  There are 2 separate issues.  The first is your income you need to report for taxes.  The bank has nothing to do with what the IRS sees or needs to know.  The second is just a financial industry (banks and credit unions) transaction processing issue.  All cash transactions over $10k in a single day are reported and then as mentioned above other transactions are also reported.  These are tracked for monitoring for money laundering, terrorism, and other issues.

 
The issue I'd be concerned about is that this didn't go through "payroll", which means not only were your income taxes not withheld, but the employer's portion was also not taken out (FICA specifically).  You may be liable for that, so I'd talk to your old company to see why it was done this way.

 
There are some helpful but potentially sloppy answers in here, from a tax perspective.

1) as @dino259 and @Chemical X have indicated, the bank will file a CTR.  You won't receive anything from the IRS as a result of this, but the transfer will have been generally flagged and tracked, essentially, due to the CTR.  This is for money laundering, terrorism, etc. tracking. 

2) the question of how you will be taxed on this and what the company will provide to you is wholly unrelated to the CTR.  Some people above have indicated that your employer will issue you a 1099.  While the spirit of this is correct, the wording is not.  The question is whether you are an employee or an independent contractor.  If you are an employee, the company cannot pay you on a 1099; they need to pay you on a W-2.  Paying you on a 1099 and not withholding payroll taxes is, simply put, illegal.  The IRS will not care if they changed payroll providers and whatnot - if you are an employee, you are an employee and get all of the standard protections of being an employee, full stop.  If you are an independent contractor, they can issue you a 1099 and you are liable for the tax plus, presumably, self-employment tax.  Impossible to answer this question given the information you've provided.

 
Keerock said:
The issue I'd be concerned about is that this didn't go through "payroll", which means not only were your income taxes not withheld, but the employer's portion was also not taken out (FICA specifically).  You may be liable for that, so I'd talk to your old company to see why it was done this way.
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This your not only on the hook for fed and state income taxes (depending where you live) but Fica and Medicare taxes as well and the employer portion as well.  That's 15.3% alone in Fica and Med taxes combined with federal and state you're looking in the neighborhood of 4K taxes.  If I were you I'd reach out to that owner and get this fixed.

 
Steve Tasker said:
There are some helpful but potentially sloppy answers in here, from a tax perspective.

1) as @dino259 and @Chemical X have indicated, the bank will file a CTR.  You won't receive anything from the IRS as a result of this, but the transfer will have been generally flagged and tracked, essentially, due to the CTR.  This is for money laundering, terrorism, etc. tracking. 

2) the question of how you will be taxed on this and what the company will provide to you is wholly unrelated to the CTR.  Some people above have indicated that your employer will issue you a 1099.  While the spirit of this is correct, the wording is not.  The question is whether you are an employee or an independent contractor.  If you are an employee, the company cannot pay you on a 1099; they need to pay you on a W-2.  Paying you on a 1099 and not withholding payroll taxes is, simply put, illegal.  The IRS will not care if they changed payroll providers and whatnot - if you are an employee, you are an employee and get all of the standard protections of being an employee, full stop.  If you are an independent contractor, they can issue you a 1099 and you are liable for the tax plus, presumably, self-employment tax.  Impossible to answer this question given the information you've provided.
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While it's illegal companies do this all the time and the OP will be on the hook for double the fica.   Not saying it's right but the OP needs to make sure taxes were withheld and that it's W-2 wages.  He needs to be aggressive with getting this fixed or he's screwed at tax time.

 
Did he just send you a check, or is there a paystub with it?  I think I'd ask him to do the accounting properly if he didn't bother and re-send your payment.

 
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Pipes said:
While it's illegal companies do this all the time and the OP will be on the hook for double the fica.   Not saying it's right but the OP needs to make sure taxes were withheld and that it's W-2 wages.  He needs to be aggressive with getting this fixed or he's screwed at tax time.
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Has OP confirmed if he's an employee or independent contractor for this company?

Has he received taxed wages before from them (employee) or just pay?

Is this a company he still works for?

Quite a bit was unclear...

 
eoMMan said:
Has OP confirmed if he's an employee or independent contractor for this company?

Has he received taxed wages before from them (employee) or just pay?

Is this a company he still works for?

Quite a bit was unclear...
Click to expand...
He said he was paid through ADP in the past so I assume he was an employee.

 
Pipes said:
While it's illegal companies do this all the time and the OP will be on the hook for double the fica.   Not saying it's right but the OP needs to make sure taxes were withheld and that it's W-2 wages.  He needs to be aggressive with getting this fixed or he's screwed at tax time.
Click to expand...
Correct, assuming he's an employee.

 
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