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#1187580 - 05/20/09 06:24 PM CTR completion question
AuditorK Offline
Platinum Poster
Joined: Feb 2003
Posts: 962
PA
We have to file a CTR for an account held as follows: John Doe and Mary Doe, DBA Doe's Construction. The account was originally opened as a joint owner checking account using John's SSN for reporting, but years later, the DBA was added. I'm not sure if a husband and wife can even legally be joint owners of a sole proprietorship. How would you complete the CTR if Mary conducted the transaction?

I was going to list John, DBA Doe's Construction in Section A (assuming John was the sole proprietor) and list Mary in Section B.

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#1187640 - 05/20/09 07:03 PM Re: CTR completion question AuditorK
Islandgirl Offline
100 Club
Joined: Nov 2005
Posts: 182
Louisiana
I would say that you have to find out for sure how the account should be set up. If it was legally set up as a joint owner sole proprietorship. I believe that some states allow joint owners of a sole propreitorship. If it is joint owners than I would complete Page 1 Section A with Mary Doe dba Doe's Construction and mark conducted on own behalf in Section B. On Page 2 Section A list John Doe dba Doe's Construction and in Section B list Mary's information as conducting the transaction for John.

This is just my opinion.

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#1187650 - 05/20/09 07:10 PM Re: CTR completion question Islandgirl
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
I wouldn't get hung up over trying to figure out how the ownership of the account ought to be, and go with what you've got now. If, based on your deposit contract, John and Mary are co-owners, complete the CTR as if the account is joint -- Check "multiple persons" in item 1, put Mary in Section A on the front, check box (e) in Section B for "conducted on own behalf," and put John in Section A on the back. Go back and plug "Doe's Construction" in item 5 on the front of the form.

You don't know who the owner of the business is, and you shouldn't assume it is John (for what it's worth, I would have done the same).

Get the CTR filed. Then worry about whether the account is set up properly later. You might have a sole proprietorship, but you might also have a de facto partnership. Then you can concern yourself, if necessary, with whether the account can be a NOW account.
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