I had a housewife deposit $40,000 in cash to her savings account. The cash was all in $100 bills. When asked about the source of funds, she said it was an inheritance. No similar transactions have been made to her account. I know I can file based on the transaction not being consistent with the expected customer activity, but I would like to know what others think. Thanks.

Why would she get it all in cash though? If she really got an inheritance I would think she would get a check and then the question becomes why did she go to the bank it was drawn off of to cash it and then come to deposit the cash instead of just depositing the check. I would report it.

can you also provide her name and phone number???

I would file for the reason that you stated - inconsistent activity...

perform some edd and check the obituaries

Let me add some details. I am in an area where many older people have nest eggs of cash burried in their backyards. The customer said that her 88 year-old mother sat her down with her sister and said she had some money she wanted to give them as an inheritance in life. The bills were older series numbers and the CTR was filed. Branch staff believes the customer who has banked with us for over ten years. Apparently the family has a very prosperous business that was started almost 70 years ago. The money is probably income that the deceased father never reported, but the daughter is reporting it now.

Was it a cash intensive business? If yes and you can prove they did have a business that would generate that amount of money then i would document and monitor. if she suddenly withdraws/wire/debits the amount then i would file.

Final note. I obtained an affadavit from the customer evidencing the source of the funds. What luck.

It's a gift, not an inheritance. Regardless of whether Dad paid income taxes on the money, it is not taxable to the daughter. However, Mom is required to file a gift tax return, Form 709 . A copy of that should eliminate future discussion.

Thanks, Ken.

Sorry I didn't state it earlier, but I am in Puerto Rico and federal tax law does not apply to us. Our local estate law refers to a legal figure that I describe as an in life advance on inhertance. Here we have statutory heirs and any donation to them made in life is considered an advance.