My wife and her sisters have a joint bank account and want to transfer their shares of it to their personal accounts. Would such transfers be reported to the IRS?

2 Answers 2


I am not an accountant in any way, but I can't imagine needing to report that to the IRS. It's not income and has probably already been taxed when it was earned/received. You're not moving it from an untaxed (Roth) retirement account to a taxed one, or vice versa.

  • I think there might still be issues of gift tax limitations here. If the OP's wife is the only one who puts money into the account, and the value is $100k, then a single sister can't withdraw the full $100k and treat it as hers without triggering gift taxes. The current US amount that would require gift reporting is $14,000 a year I believe, though a $28k gift to a sister could be viewed as a $14k contribution from the OP's wife and another $14k from the OP.
    – davmp
    Commented Aug 31, 2016 at 0:02
  • Correct. I guess I (possibly erroneously) assumed they money was of equal share/contribution to what was being withdrawn by each person. That may very well not be the case.
    – Neal L.
    Commented Aug 31, 2016 at 15:55

Anything over a $10,000 deposit is reported to the IRS. I'm not sure if you need to fill out a form or if the bank does it automatically. As long as it's legit I don't see that there would be any issues. The worst that would happen is somebody would have to talk to the IRS and explain that it was their money and not a gift of some sort.

Edit it is reported to the FinCEN not the IRS


  • Cash transactions of $10k up either direction (deposit or withdrawal) are reported to FinCEN not IRS. And this does not apply to transfers between accounts, which is the question here. Commented Aug 31, 2016 at 23:20
  • You are right about FinCEN but wrong about transfers. The FinCEN mentions cash transfer numerous times. A bank must electronically file a Currency Transaction Report (CTR) for each transaction in currency (deposit, withdrawal, exchange, or other payment or transfer) of more than $10,000 by, through, or to the bank.
    – kweinert
    Commented Sep 2, 2016 at 10:36
  • Can you cite exactly the line from that document that led you to believe this applies to any $10K+ transactions? I understood as Dave does, this is paper cash only. The classic bag or suitcase of cash. Commented Sep 2, 2016 at 10:52
  • @Joe: I've found FinCEN's documents horrible, but his wording matches ffiec.gov/bsa_aml_infobase/pages_manual/OLM_017.htm (the people who enforce this and related regulations) except a footnote (implemented as a tooltip) defining currency as "coin and paper money of the United States or any other country as long as it is customarily accepted as money in the country of issue." +kweinert: So yes transfers from currency are included, along with other currency transactions -- but NOT transfers between accounts, which banks do electronically.without any currency. Commented Sep 8, 2016 at 5:39

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