RED FLAGS - checks from sportsbooks and BITPAY cards.

[Pinoy-T-X]

Ok, this past weekend a friend of mine had a BBQ at his backyard. And I met a few of his other friends. One who happened to be a bank teller.
After a few beers, I asked about the USA patriot act. Which was started after 9/11 to keep track of money laundering to terrorist and any kind of illegal activities of money laundering in general.
He said that he had to report this customer who was receiving checks from a Canadian bank at least twice a month with different amounts usually around $1-3K
I said to who and what for. He said to the Feds and for suspicious activity.
He said they were trained to report any suspicious activity regarding money laundering.
To make a long story short they found out it came from a sports book and he didn't really know what happened to the customer since the Feds don't really tell them about the investigation.
i just find it weird that the Feds would really care about a $1-3K deposit/withdrawal but at the same time worried because most of us before bitcoin came, deposited checks from sportsbooks.

Furthermore, for us bitpay card users. Remember we gave our SSN to have an account with them. Does that mean the Feds keep track of our transactions too.
Things like this keep me up at night.

[KVB]

The amounts don't seem too bad, but the regular action could trigger the flag. He should use multiple banks.

Sadly, for many such is and has been the life in the US.

[Pinoy-T-X]

I'm guessing since we give a SSN to bitpay card, they can basically track All your transactions

[KVB]

Same with Bitcoin, that early need to verify a bank account is all the Treasury Department needs. They know you cashed in, they know you cashed out. People trade cryptos because they let the people trade them. Period.

Anonymity is likely an illusion.

[Pinoy-T-X]

Same with Bitcoin, that early need to verify a bank account is all the Treasury Department needs. They know you cashed in, they know you cashed out. People trade cryptos because they let the people trade them. Period.

Anonymity is likely an illusion.

Exactly

[Sam Odom]

Stay clean... report your income properly and legally

[Pinoy-T-X]

Stay clean... report your income properly and legally

True.
But how can you report income from offshore books when it's not legal in the US?

[ryanjep]

True.
But how can you report income from offshore books when it's not legal in the US?

Add the income to your earnings from your W2 and pay taxes on it. IRS doesnt care where the money came from if you are paying taxes on it.

[downsouth]

-500 this is bullshit story.

[Pinoy-T-X]

Add the income to your earnings from your W2 and pay taxes on it. IRS doesnt care where the money came from if you are paying taxes on it.

Ok, I don't want to sound like a smart ass. But if drug cartels, hookers, thieves etc. paid their taxes - does that mean they're off the hook?

[Pinoy-T-X]

-500 this is bullshit story.

Have a good day too, bro.

[jjgold]

Anyone using any sort of a check for an Offshore sports book is a jerk off

[lom bylyri]

Add the income to your earnings from your W2 and pay taxes on it. IRS doesnt care where the money came from if you are paying taxes on it.

How do you itemize that income on your filing ? You have to tell on your return where the money came from. And it is an illegal source of income. Otherwise meth-lab Randy Toothless would be able to pay taxes on his income too.

[Pinoy-T-X]

Anyone using any sort of a check for an Offshore sports book is a jerk off

the story was before btc. How did people withdraw prior to btc?

[funnyb25]

LOL...We lose 100000000 a year betting but they are worried about our 1-3k deposits

[Pinoy-T-X]

LOL...We lose 100000000 a year betting but they are worried about our 1-3k deposits

True that

[MaddyMax]

Add the income to your earnings from your W2 and pay taxes on it. IRS doesnt care where the money came from if you are paying taxes on it.

yea and how would you write of your losses if you have a losing year. if reporting gambling money is legal, its most bettors dream because 98% lose money and they can write off all the losses.

[milwaukee mike]

yea and how would you write of your losses if you have a losing year. if reporting gambling money is legal, its most bettors dream because 98% lose money and they can write off all the losses.

you can offset the losses if you itemize deductions, but only up to the winnings

if you are a professional gambler then you can show a loss on schedule C along with expenses (cell phone/internet/mileage/etc) ... but if you were the meth-lab guy, the only expenses allowable for drug dealers is cost of goods sold

[Pinoy-T-X]

yea and how would you write of your losses if you have a losing year. if reporting gambling money is legal, its most bettors dream because 98% lose money and they can write off all the losses.

Per IRS you can write off losses as long as it's not more than your winnings (bummer I know) - I'm talking about legal gambling in the casinos and race tracks. That's why I keep receipts of losing tickets from sports bets in the casinos sportsbook so when I win like a Slot machine jackpot (anything more than $1200 is reported to the IRS by the casino) it evens out.

[Pinoy-T-X]

you can offset the losses if you itemize deductions, but only up to the winnings

if you are a professional gambler then you can show a loss on schedule C along with expenses (cell phone/internet/mileage/etc) ... but if you were the meth-lab guy, the only expenses allowable for drug dealers is cost of goods sold

You're on point.