9 Things People Try to Do With Cash — But the Law Says No

Cash may feel like the most flexible form of money, but there are actually strict rules about what you can and cannot do with it.

While many people assume that having physical bills gives them total freedom, certain transactions, habits, and loopholes can land you in serious legal trouble without you even realizing it.

From limits on large cash payments to lesser-known restrictions that surprise even seasoned shoppers, the law has more to say about cash use than you might expect.

In this article, we break down 9 things people often try to do with cash — but legally can’t, explaining why these rules exist and how to avoid mistakes that could cost you fines, penalties, or worse.

Whether you’re curious, cautious, or simply want to stay on the right side of the law, this list will open your eyes to what cash really can’t buy.

1. Hiding Cash Income from the IRS

Every dollar you earn needs to be reported to the government, even if someone pays you in crispy bills.

Whether you’re babysitting on weekends, waiting tables for tips, or running a side hustle, the IRS expects you to declare all income.

Keeping cash earnings secret might seem harmless, but it’s actually tax evasion.

Authorities take this crime seriously because it cheats the system everyone else pays into.

Penalties can include massive fines that dwarf the amount you tried to hide.

In extreme cases, people face prison time for deliberately concealing their cash income from tax collectors.

2. Making Large Bank Deposits Without Reporting

Banks must notify federal authorities whenever someone deposits more than ten thousand dollars in cash.

This rule exists to prevent criminals from washing dirty money through the financial system.

Some folks think they can outsmart the system by making several smaller deposits instead of one big one.

This tactic, called structuring or smurfing, is actually its own separate crime.

Financial institutions have sophisticated software that detects these patterns.

Getting caught can trigger investigations, freeze your accounts, and bring serious legal consequences even if your money came from legitimate sources.

3. Paying Workers Under the Table

Business owners sometimes pay employees entirely in cash without creating any official records.

This practice violates tax laws and labor regulations designed to protect workers and ensure fair contribution to public services.

Employees deserve proper documentation for their work history, unemployment benefits, and Social Security credits.

When employers skip this step, they’re stealing future benefits from their workers.

Government agencies actively investigate these situations.

Penalties include back taxes, interest charges, substantial fines, and potential criminal prosecution for both the employer and sometimes the employee who participated knowingly.

4. Buying Property with Unreported Cash

Real estate deals require transparency about where your money comes from.

Showing up with suitcases full of bills to buy a house raises immediate red flags with agents, lawyers, and government officials.

Anti-money laundering laws demand that buyers prove their funds came from legal sources.

Cash purchases need proper documentation showing the money’s origin and path to your possession.

Attempting to bypass these rules can completely derail your property purchase.

Authorities might seize the cash, investigate you for money laundering, and you could face prosecution even if you earned the money legitimately.

5. Crossing Borders Without Declaring Cash

Planning an international trip with more than ten thousand dollars in your luggage?

You absolutely must declare it at customs, whether you’re leaving or entering the country.

Many travelers mistakenly believe they can quietly carry any amount across borders.

Customs agents have the authority to search bags and ask direct questions about the cash you’re carrying.

Failure to report can result in immediate seizure of your entire stash.

You’ll face steep fines, potential criminal charges, and a lengthy legal battle to recover your money, assuming you can prove it came from legal activities.

6. Laundering Money Through Businesses

Criminals often try to disguise illegal earnings by running them through legitimate businesses like restaurants, laundromats, or car washes.

This process, called money laundering, makes dirty money appear clean.

Federal agencies constantly monitor cash-intensive businesses for suspicious patterns.

Unusually high cash deposits compared to actual customer traffic triggers investigations.

The consequences are devastating: asset seizures, business closure, enormous fines, and lengthy prison sentences.

Even business owners who unknowingly participate can face prosecution, so understanding your cash flow patterns matters tremendously for your protection.

7. Bribing Government Officials

Slipping cash to a police officer, building inspector, or any government worker to influence their decisions is absolutely forbidden.

Even small amounts offered as gifts can qualify as bribery under corruption laws.

People sometimes rationalize these payments as tips or tokens of appreciation.

Courts don’t see it that way when the money aims to gain favorable treatment or avoid consequences.

Anti-corruption statutes carry harsh penalties including jail time, permanent criminal records, and loss of professional licenses.

Both the person offering the bribe and the official accepting it face prosecution under these laws.

8. Structuring Deposits to Avoid Bank Reports

Breaking up large sums into smaller deposits might seem clever, but banks and federal agents recognize this pattern instantly.

The practice is illegal regardless of whether your cash came from legal or illegal sources.

Financial institutions file suspicious activity reports when they spot these behaviors.

The act of structuring itself is the crime, separate from any underlying illegal activity.

People have lost their entire life savings to seizure for this violation alone.

Your account gets frozen, you face potential prosecution, and recovering your money requires expensive legal battles even when you’ve done nothing else wrong.

9. Defacing or Destroying Currency

That crisp dollar bill in your pocket belongs to the federal government, technically.

You’re just authorized to use it as legal tender for transactions and debt payment.

Deliberately burning, shredding, or altering currency for non-artistic purposes violates federal law.

The government protects money from destruction to maintain the integrity of the financial system.

While prosecution is rare for small amounts, the law exists and carries fines.

Businesses that stamp or print advertisements on bills can face penalties.

Creating art from currency occupies a legal gray area depending on intent and method.