Specifically, the behavior is called "structuring" which means you routinely make bank deposits that are slightly less than $10,000. When you make deposits of $10,000 or more, banks are required to report that to the Treasury Dept. So making routine deposits of just under $10,000 looks like you are trying to avoid IRS detection.
Does your pottery business behave like this? If not, then don't worry about this.
Is it possible for legitimate small businesses to behave like this by accident? Of course, and it's too bad if this happened to innocent people. This is another reason why it pays to have a good accountant. Hypothetically, if I landed a huge wholesale account that involved a $9,800 order every quarter, I'm confident my accountant would notice it and say "let me explain structuring to you, and why you should renegotiate this order."
- Chris Campbell likes this