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!

I completely understand your anxiety - receiving such a large sum when you're not used to it can definitely feel overwhelming! But everyone here is giving you solid advice. I went through something similar when I received a $55k gift from my aunt two years ago. The anticipation and worry was honestly worse than the actual process. Here's what made me feel better: 1. I called my bank ahead of time and explained I'd be depositing a large gift check. They noted it in my account and told me exactly what to expect (5-day hold, routine questions, etc.) 2. I brought a simple gift letter that my aunt had written and signed - just one paragraph stating it was a gift with no strings attached 3. The bank teller asked about the source, I said "gift from family," showed the letter, and that was it 4. Never heard a peep from the IRS about it The hardest part was honestly just getting over the mental hurdle of "this feels too good to be true" or "surely I'm missing something." But legitimate gifts with proper documentation are incredibly common and the system is set up to handle them smoothly. Your CPA is right - you have nothing to declare and nothing to worry about. The paper trail is there if anyone ever asks (which they probably won't), and the giver is handling their end properly. You're all set!

I completely understand your anxiety about this! I went through something very similar when I received a $65k gift from my grandfather last year. The anticipation was honestly the worst part - I was convinced something would go wrong or the IRS would come knocking. Here's what actually happened: I deposited the cashier's check, the bank asked a few routine questions about the source (I just said "gift from family"), they put a standard hold on the funds for about a week, and that was literally it. No IRS contact, no audit, no problems whatsoever. A few practical tips that helped me: - I kept a copy of the gift letter and the check stub in a folder just in case, but never needed them - Called my bank the day before to let them know I'd be making a large deposit - they appreciated the heads up - Reminded myself that gifts are incredibly common and the system handles them routinely Your CPA is absolutely right - you have zero tax obligations on money you receive as a gift. The giver handles all the paperwork on their end. You're overthinking this (which is totally understandable!), but you're going to be fine. The paper trail is solid and everything is legitimate. Take a deep breath - this is much more routine than it feels when you're going through it for the first time!

I totally get the nervousness! I went through this exact situation about 8 months ago with a $70k gift from my parents. The whole thing felt so surreal - like there had to be some catch I wasn't seeing. What really helped me was realizing that large gifts are actually pretty common. People inherit money, receive wedding gifts, get help with down payments, etc. The banking and tax systems are completely set up to handle these transactions routinely. Here's what made the process smooth for me: - Called my bank 2 days before the deposit and simply said "I'll be depositing a large gift check on Friday, around $70k" - They made a note on my account and told me exactly what to expect - Brought a simple gift letter (just one paragraph my parents wrote stating it was a gift with no repayment expected) - The whole deposit took maybe 10 minutes with standard questions The bank put a 7-day hold on the funds, which they explained was standard for any check over $50k regardless of source. Never heard anything from the IRS - not even a letter. Your instinct to ask questions shows you're being responsible, but your CPA gave you the right advice. Gift recipients have zero tax obligations, and with proper documentation from the giver, you're completely covered. The hardest part is just getting past that mental hurdle of "this seems too easy" - but it really is that straightforward when everything is legitimate!

I went through something very similar last year with a $55k gift from my uncle. I was absolutely terrified it would trigger some kind of investigation, but it was completely uneventful! Here's what I learned that might help ease your mind: **For the bank deposit:** - Call ahead like others suggested - it really does make a difference - The teller will ask about the source, just say "gift from [relationship]" - Bring a simple gift letter if you have one, but don't stress if you don't - Expect a hold period (mine was 5 business days) **For IRS concerns:** - Gifts to recipients are NEVER taxable income to you - The IRS doesn't audit people for receiving documented legitimate gifts - Since your giver is filing the lifetime exclusion form, everything is properly handled **What actually happened:** - Smooth deposit process with routine questions - Funds available after the hold period - Zero contact from IRS (it's been over a year now) - No issues whatsoever The anxiety beforehand was honestly 100x worse than the actual experience. Your CPA is absolutely right - you have nothing to worry about. This is a normal transaction that happens thousands of times every day across the country. Congratulations on your gift, and try to enjoy it rather than stress about it!

I just wanted to add my experience from depositing a $62k gift last month - your situation sounds almost identical to mine! The anticipation was definitely the worst part. I spent weeks worrying about potential red flags, audits, account freezes, you name it. But the actual process was incredibly straightforward. Here's what worked for me: - Called my bank 3 days ahead and simply said "I'll be depositing a large gift check this week" - They made a note and explained their standard hold policy for large amounts - Brought a one-page gift letter (the giver wrote it without me even asking) - Deposit took about 15 minutes with basic questions about the source - 6-day hold period, then funds were fully available - Absolutely zero contact from the IRS (and it's been 2 months now) Your CPA is spot-on - recipients of gifts have no tax obligations. The giver handles everything on their end with the lifetime exclusion form, just like in your case. One thing that really helped my peace of mind was keeping digital copies of the gift letter and check in a cloud folder, just in case I ever needed them. But honestly, based on everyone's experiences here, it seems like the IRS rarely if ever follows up on properly documented gifts. Try to relax and enjoy this generous gift! The financial system handles these transactions every single day - you're going to be just fine.