Question of the Week

Failure to report certain transactions to the IRS is a prohibited practice under the Uniform Securities Act. Which of the following transactions would require such notification?

a) Withdrawal of $5,000 in cash
b) Withdrawal of $12,000 in cash
c) Deposit of $15,000 of bonds
d) Deposit of $5,000 in cash


Answer:

The correct answer is b.

Any deposits or withdrawals of amounts over $10,000 must be reported. However, only cash amounts have this requirement, not securities.