I have a question of a CTR. We have two separate businesses owned by the same person with 3 transactors. Each have their own tin. The two businesses share a store, but employees appear to operate only their side of the store. One transactors is in common, but they are a general manager (right hand man of the owner) and it appears in all other aspects the businesses are separate. Separate cash registers, separate payroll... etc. Only one of the businesses had deposits over $10,000.

Our system in generating the CTR for two part ones with both businesses, even though only one was over $10,000.

I understand the Fincen guidance from a few months back, but I am wondering which way is correct in this situation?

To me, it comes down to are they separate or do we need to aggregate. If we need to aggregate the system is correct to have two part ones. If not then we should remove the business with the smaller deposit.

We do not have access to the payroll account information, so I cannot determine if the joint employee is paid by either one of, both, or only one of the business in question.

All the information we have is:

One person who works for the owner of two separate businesses makes a deposit into both businesses.
Only one business is over $10,000 (there are multiple other deposits. 15 in one account and 2 in the other)
Employees are separate and cannot operate each others cash registers.
We believe payroll is separate, but we do not have their payroll accounts.

How do I file?

Generally, my first question would be: The "businesses:" corporations, partnerships, LLC's, sole proprietorships? However, you said:



If so, both transactions are "by the same person" and they are, thus, subject to aggregation without regard to the presence or absence of common ownership.

Assuming the businesses are different legal entities, on the legacy form 104 there would be two separate entries in Section A (one for each entity) and one in Section B for the person conducting the transaction. (Your software is doing it correctly.)

CTR rules require that deposits be aggregated if they are BY or ON BEHALF OF the same person. Did the one individual who made deposits to both business accounts individually bring in more than 10k? If the answer is yes, then you must aggregate. If the answer is no, then you do not.

Example:

Transactor 1 - Deposits $6000 to Business A and $6000 to Business B
Transactor 2 Deposits $3000 to Business A
Transactor 3 Deposits $3000 to Business A

In this example since Transactor 1 brought in $12000, the deposit to Business B is included in the CTR.

Example 2:

Transactor 1 Deposits $3000 to Business A and $3000 to business B
Transactor 2 Deposits $5000 to Business A
Transactor 3 Deposits $4000 to Business A

In this case, no single person brought in more than $10k, but Business A benefited from $12000 so your CTR would only include deposits to Business A.

Example (in chorological order)

Transactor 1 deposits $5000 in A and $4000 in B
Transactor 2 deposits $6000 in A
Transactor 3 deposits $4000 in B
Transactor 1 deposits $1000 in A

We definitly report Transactor 1 & 3, but how about 3? Do we report A & B in section 1?

The "businesses:" corporations, partnerships, LLC's, sole proprietorships?

Ken keeps asking about the form of the businesses because it's an important fact. If the two businesses are both sole proprietorships (SPs) owned by the same individual, then you aggregate all the deposits based on the fact that all the transactions were completed on behalf of one person -- the owner -- in spite of the fact that the businesses appear to be separately operated and each has its own TIN.

If the businesses are not both SPs owned by the same individual, it appears from your scenario that they are separately operated, and their common ownership is irrelevant. They have separate legal existence. In the example transactions you listed in your post number ending in 272, the three deposits totaling $12,000 to business A get aggregated and reported on one CTR if they occurred on the same business day. Transactor 1 deposited a total of $10,000, Transactor 2 deposited $6,000 and Transactor 3 deposited $4,000, so there is no CTR based on common transactor exceeding $10,000 cash. Business B received $8,000 in cash deposits, so no CTR gets filed on B at all.

One corporation and one llc.

Then ignore my first paragraph above. The rest applies.