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Simple English definitions for legal terms
cash-transaction report
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A quick definition of cash-transaction report:
Term: Cash-Transaction Report
Definition: A cash-transaction report is a form that banks and other financial institutions have to fill out and send to the IRS when they handle cash transactions above a certain amount. This helps the government keep track of large cash transactions and prevent illegal activities like money laundering.
A more thorough explanation:
A cash-transaction report is a form that banks and other financial institutions have to fill out and submit to the IRS. This form is also known as IRS Form 4789. It requires them to report any cash transactions that exceed a certain amount.
For example, if someone deposits $10,000 in cash into their bank account, the bank has to report this transaction to the IRS using the cash-transaction report. Similarly, if someone withdraws $15,000 in cash from their account, the bank has to report this as well.
The purpose of this report is to help the IRS keep track of large cash transactions and prevent money laundering and other illegal activities. By requiring financial institutions to report these transactions, the IRS can better monitor and investigate any suspicious activity.