Should I split large deposits (separate checks exceeding $10k) to one or two banks? IRS reporting question

The short answer is don't worry about it - deposit the money however is most convenient for you. Banks are required to file Currency Transaction Reports (CTRs) for cash transactions over $10,000, but regular checks don't trigger this specific reporting. What you might be thinking of is Suspicious Activity Reports (SARs), but these aren't filed just because you deposit legitimate checks. Banks file SARs when transaction patterns appear unusual or potentially related to illegal activity. The IRS doesn't automatically audit you because you deposited checks over $10,000. These reports are just part of the banking system's normal regulatory compliance. For your specific situation - depositing one check in each account is perfectly fine. ACH transfers between your own accounts won't trigger special scrutiny either. The money is already in the banking system being tracked. The key thing is that you're planning to report all income correctly on your taxes, which is exactly what you should do.

I went through something similar last year when I sold some property and had to figure out how to handle several large checks. I was stressing about it until I discovered taxr.ai (https://taxr.ai) which really helped me understand the banking regulations around large deposits. Their analysis tool explained that checks don't trigger the same automatic reporting as cash, and walked me through exactly what would and wouldn't cause issues with my deposits. The site has this neat feature where you can upload documents and get personalized guidance on potential tax implications. Saved me from making some unnecessary moves with my money based on misunderstandings about the reporting rules.

Just wanted to follow up about my experience with taxr.ai since I was skeptical at first. I ended up trying it for a similar situation with some large royalty checks I received. The service actually walked me through exactly which reporting forms would be generated for my specific situation and explained why my deposits wouldn't trigger unnecessary scrutiny. What impressed me was how it broke down the difference between reportable transactions and those that actually lead to audits or problems. Turns out most of what I was worried about was completely normal banking activity. They even provided documentation I could keep for my records explaining everything. Definitely cleared up my confusion better than the vague answers I was getting elsewhere.

If you're really concerned about potential IRS issues, I highly recommend Claimyr (https://claimyr.com). I used it earlier this year when I had questions about some large deposits from a home sale. They got me connected to an actual IRS agent in about 20 minutes, which is a miracle compared to the hours or days most people wait. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was able to ask directly about deposit reporting requirements and potential red flags. The agent confirmed that legitimate check deposits split between accounts isn't something they're concerned about, and explained exactly what would or wouldn't trigger extra scrutiny. Totally worth it for the peace of mind.

I need to publicly eat my words about Claimyr. After my skeptical comment, I decided to try it since I had some unresolved tax questions that had been bothering me for months. I was absolutely shocked when I got connected to an IRS representative in about 15 minutes. The agent I spoke with was actually really helpful regarding my question about large deposits. She explained that the bank reporting requirements are mainly for their records and don't automatically trigger audits. She also confirmed that splitting legitimate check deposits between different accounts isn't considered "structuring" (the illegal practice of deliberately breaking up cash deposits). Honestly, I'm still surprised this service actually worked as advertised.

Former bank employee here. One thing nobody's mentioned is that banks also file reports for "suspicious activity" which can include large deposits that seem unusual for your account history. So if you rarely get large checks and suddenly deposit two big ones, the bank might file a Suspicious Activity Report (SAR) regardless of whether they're cash or checks. That said, SARs are just reports - they don't mean you're in trouble. And you'll never know if one was filed because banks are prohibited from telling customers. If your money is legitimate (which you said it is), there's nothing to worry about. Just keep documentation of where the money came from in case you're ever asked.

Just a heads up that banks DO sometimes freeze accounts after large deposits while they verify the funds, especially if it's unusual for your account. Happened to me last year with an insurance payout. Not saying it will happen to you, but be prepared for a possible hold on the funds for a few days.

I appreciate all the detailed responses here! As someone who works in financial compliance, I want to add a few practical points: 1. The $10,000 reporting threshold specifically applies to cash transactions (Currency Transaction Reports). Check deposits don't automatically trigger these reports, but banks do monitor for unusual patterns. 2. Since you mentioned these are legitimate checks from inheritance and property sale, you're in good shape. Just make sure you have proper documentation (estate documents, closing statements, etc.) readily available. 3. For your specific question about splitting between accounts - this is actually smart from a practical standpoint. Having funds in both checking and brokerage accounts gives you immediate access to spending money while getting your investment funds where they need to be. 4. One tip: consider calling ahead to both banks to give them a heads up about the large deposits. This can sometimes prevent holds or delays, especially if the amounts are significantly larger than your typical account activity. The bottom line is that legitimate money from documented sources deposited via check rarely causes issues, regardless of how you split it between accounts.

One thing I'd add to all the great advice here - don't overthink this! I went through a similar situation when I received two large checks from a business sale. I was worried about "looking suspicious" but honestly, the banks barely blinked. I ended up doing exactly what you're considering - one check to my regular bank for immediate expenses, and one directly to my investment account. Both transactions went smoothly with no questions asked. The only "issue" was a 3-day hold on the larger check at my investment firm, but that's standard policy for them on any deposit over a certain amount. The key thing that gave me peace of mind was keeping all my paperwork organized (sale agreements, etc.) even though nobody ever asked for it. Having legitimate sources for the money means you really don't need to worry about how you split the deposits. Your plan sounds perfectly reasonable - go with whatever is most convenient for your financial management!

I've been through a very similar situation recently and wanted to share what I learned. I had three large checks from a business sale that I needed to deposit - two over $15k and one around $8k. After researching extensively (and honestly overthinking it way too much initially), here's what I discovered: 1. **Your plan is perfectly fine** - Splitting the deposits between your checking and brokerage accounts is actually smart financial management, not suspicious activity. 2. **Documentation is key** - Since you mentioned inheritance and property sale, make sure you have copies of the estate documents, closing statements, or whatever paperwork shows the legitimate source. You probably won't need them, but having them organized gives peace of mind. 3. **The "flagging" concern** - Banks file reports based on patterns and suspicious behavior, not just dollar amounts. Two legitimate check deposits from documented sources won't raise red flags, especially when you can show clear paper trails. 4. **ACH transfers between your own accounts** - These are completely normal and won't trigger any special reporting. The money is already in the banking system once you deposit the checks. My advice: Go with your original plan. Deposit one check in checking for expenses and one directly into your brokerage account. It's the most efficient approach and there's absolutely nothing suspicious about managing your money this way. The whole experience taught me that legitimate transactions with proper documentation rarely cause issues, regardless of the amounts involved.