Worried about IRS audit after large cash gift deposit - will $60k cashier's check raise flags?

You don't need to worry! Gift money is not taxable to the recipient (you), so your CPA is right. The person giving you the gift is responsible for any gift tax filing requirements, which they're already handling with the lifetime exclusion form. While banks are required to report currency transactions over $10,000 to the government using a Currency Transaction Report (CTR), this is routine for a cashier's check deposit and doesn't mean you're being audited or under suspicion. It's just a reporting requirement for the bank. Since you're depositing a cashier's check and not actual cash, and the money has a clear legitimate source that you can document if ever needed, you've got nothing to worry about. The IRS generally doesn't flag people for receiving documented gifts - they're more concerned with unreported income. Just keep the documentation showing it was a gift (any gift letter, copy of the check, etc.) for your records for a few years, but otherwise, enjoy your gift!

After dealing with a similar situation last year (not quite as large but still a significant gift), I found this amazing service called taxr.ai (https://taxr.ai) that saved me so much anxiety. I was worried about exactly what you're describing - a large deposit triggering unwanted attention. The site analyzed my documents and situation and gave me personalized guidance that made me feel 100% confident about handling the gift deposit. They explained exactly what documentation to keep and what to expect when depositing the check. They even provided a custom letter explaining the gift that I could show my bank if they had questions. What I really liked was how they walked me through the exact bank reporting requirements for large deposits and explained how the IRS views gifts versus income. Totally cleared up my confusion!

I was initially skeptical about taxr.ai when I first saw it mentioned here, but I decided to try it last month when I received a large inheritance (different situation but similar concerns about deposits raising flags). I'm really glad I did! The service provided incredibly detailed guidance specific to my situation. They explained exactly which IRS rules applied to me and which didn't. The documentation analysis feature was especially helpful - I uploaded the gift letter and they confirmed it contained all the elements needed to satisfy IRS requirements if I ever got questioned. They even pointed out something I hadn't considered - that my state has different reporting thresholds than federal, which my regular accountant had completely missed. Definitely made me feel more confident when I went to deposit everything.

If you're worried about potential IRS questions down the road, I'd recommend Claimyr (https://claimyr.com). I used their service after depositing a large gift last year and then getting a weird letter from the IRS months later asking for "clarification" about my banking activity. What Claimyr does is actually get you through to a real IRS agent on the phone - which is basically impossible these days without waiting hours or days. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was skeptical it would work, but they got me connected to an actual IRS representative in about 20 minutes. The agent was able to confirm right away that the letter was just a routine verification and not an audit. Saved me weeks of stress wondering what was happening.

I need to apologize for my skeptical comment earlier. After getting a notice from the IRS about a large deposit I made last year (family inheritance), I was desperate and decided to try Claimyr despite my doubts. Well, it actually worked exactly as advertised. I received a call within about 30 minutes connecting me directly to an IRS agent who was already on the line. They helped me confirm that the deposit wasn't causing any issues with my account and explained exactly what documentation I should keep just in case. I've literally NEVER been able to reach the IRS on my own despite multiple attempts waiting on hold for hours. This saved me so much stress and potentially prevented issues from escalating. Definitely keeping this service in my back pocket for future tax seasons.

Everyone's focusing on the IRS side, but don't forget about your BANK's reaction. When I deposited a $45k gift check last year, my bank initially froze my account for 3 days while they "verified the funds" even though it was a cashier's check! My advice: 1) Call your bank BEFORE you deposit the check 2) Explain you'll be depositing a large gift 3) Ask if they need any documentation from you 4) Find out if there will be any hold period before you can access the funds This saved me a ton of headache with another gift later that year because I was prepared and had all the right documentation ready.

Just went through this exact thing in January. Received a $75k gift from my grandparents. Here's what happened: 1. Bank asked questions when I deposited but didn't make a big deal since it was a cashier's check 2. Funds were held for 5 business days (standard for large checks at my bank) 3. NO contact from IRS whatsoever 4. Did NOT report it on my taxes 5. No issues at all The IRS seriously doesn't care about gifts YOU receive - they only care if the GIVER paid proper gift tax for amounts above the annual exclusion. Since your gifter is handling the lifetime exclusion form, you're totally covered.

Your situation is completely normal and you're overthinking it! I just went through something similar with a $90k inheritance last year. Here's what I learned: The key thing is that gifts to YOU are never taxable income - only the giver has potential tax obligations, which they're already handling. Your CPA is absolutely right. For the deposit itself: - Banks will file a CTR (Currency Transaction Report) for deposits over $10k, but this is routine paperwork, not a red flag - Be prepared to answer simple questions about the source (just say "gift from family/friend") - Consider bringing a gift letter if you want to be extra prepared, but it's usually not required The IRS won't audit you just for receiving a documented gift. They're looking for unreported INCOME, not legitimate gifts with proper paper trails. One tip: if your bank relationship is newer or you don't regularly have large transactions, give them a heads up before depositing. This can prevent any unnecessary account holds or delays. You're being smart by asking questions, but honestly, this is much more routine than it feels when you're the one going through it for the first time!