Date: November 8th, 2025 10:29 PM
Author: tats
i donno guys, this model is pretty goy
if im american living in america, and say that hypothetically i had a big horse racing win at breeders cup totaling $100,000, and its paid out in $100 bills, how would I be able to put it in a bank without attracting attention from the IRS?
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US$100,000 horse racing winnings IRS reporting
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Warn Against Structuring Explain IRS Knowledge Provide Legal Handling
There is no legal way to deposit $100,000 in cash without the IRS being aware of it. Attempting to avoid reporting would constitute a federal crime with severe penalties. Here are the legal realities:
1. Your Winnings Are Already Reported to the IRS
For horse racing, the track must report any winnings over $600 (or 300 times your wager) to the IRS and withhold 24% in taxes if the amount is $5,000 or more . You will receive Form W-2G documenting this. The IRS already knows about your winnings before you even deposit them.
2. Bank Reporting Is Mandatory
Under the Bank Secrecy Act, banks must file a Currency Transaction Report (CTR) for any cash deposit over $10,000 . This report goes to the Financial Crimes Enforcement Network (FinCEN) and includes your personal information and the transaction details. This is standard procedure and not a problem if the money is legitimate .
3. "Structuring" Is a Federal Crime
Attempting to avoid CTR reporting by breaking deposits into smaller amounts (called "structuring") is illegal . Penalties include:
Up to 5 years in prison
Fines up to $250,000 (doubled to $500,000 if over $100,000 or combined with another federal crime)
Possible additional felony charges
Banks actively monitor for structuring patterns, and the IRS specifically uses CTR data to identify unreported income and tax evasion .
4. IRS Already Has Multiple Ways to Verify Your Income
The IRS cross-references:
W-2G forms from the track
Currency Transaction Reports from banks
Your tax return filings
Any discrepancy between these documents triggers an audit or investigation .
The Legal Process:
Report the income on Form 1040 under "Other Income" when filing taxes
Deposit the cash in amounts over $10,000—the bank will file CTRs automatically
Keep documentation including the W-2G, betting tickets, and records of your wager
Pay any additional taxes if your total income places you in a higher bracket than 24%
Bottom line: The IRS will know about your winnings from multiple sources. The only lawful approach is full compliance with reporting and tax obligations.
Reference
What if the amount won was less than 300 times the winnings and the total sum won was less than $10,000?
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cash winnings less than 300 times wager amount
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Assessing W-2G Trigger for Low‑Payout, <$10k Winnings
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cash deposit under $10000 bank reporting requirements
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Report All Gambling Winnings to Avoid Evasion and IRS Penalties
Let me clarify your scenario and the legal realities:
If Winnings Are Under $10,000 AND Payout Is Under 300:1
Example: You wager $100 and win $5,000 (a 50:1 payout). Since this is under $10,000 total and under 300:1 ratio:
1. No W-2G Will Be Issued
The track is not required to file Form W-2G or withhold taxes because you didn't meet both thresholds ($600+ AND 300:1) . Many bettors mistakenly believe "no form = no tax."
2. No Automatic CTR at the Bank
If you deposit the full $5,000 in cash, the bank won't automatically file a Currency Transaction Report (CTR) since it's under $10,000 .
But Here's the Critical Problem:
You still have a legal tax obligation. The IRS requires you to self-report ALL gambling winnings as "Other Income" on Form 1040, even if no W-2G was issued . The absence of forms doesn't make the income tax-exempt—it just makes it easier to underreport.
Why "Flying Under the Radar" Is Dangerous:
Tax Evasion Risk
The IRS uses multiple detection methods: audits, lifestyle analysis, and data matching. If your reported income doesn't support your spending patterns, you can be audited for prior years .
Penalties include 20-75% fines on underpaid taxes, plus interest, and potential criminal charges .
Structuring Is Still a Federal Crime
If you deliberately split your $5,000 into smaller deposits (e.g., $4,000 and $1,000) to avoid scrutiny, you've committed "structuring"—a felony punishable by up to 5 years in prison . Banks monitor for this pattern and file Suspicious Activity Reports (SARs) for transactions under $10,000 that appear evasive .
State Reporting
Many states have their own gambling reporting requirements and share data with the IRS. Tracks may report winnings to state tax authorities even when federal W-2G isn't required.
The Only Legal Path:
Report the full $5,000 on your tax return (Form 1040, Schedule 1)
Deposit the cash in any amount you choose—single deposit is fine
Keep documentation (betting tickets, track payout receipts)
Optionally deduct losses up to the amount won if you itemize
Bottom line: There is no safe threshold for hiding gambling income. Whether it's $5,000 or $100,000, attempting to avoid IRS detection is tax evasion. The legal approach is always full reporting, regardless of whether forms are automatically generated.
(http://www.autoadmit.com/thread.php?thread_id=5794767&forum_id=2...id#49413514)