[ChalkyDog]

CD , have you ever been audited by IRS for any reason ?

Once, when I was real young, because I was claiming my own business. But it worked out.

[BranchDavidian]

How does the IRS even know you have a bank account, much less whether or not a $5000 wire went into it ( pre-audit)? And anywho, now you seem to be lowering that deposit from a $5000 wire to a $3000 check?

[Sam Odom]

CD , true story as a kid in college i got a summer job in a glass factory, pay was good and i could work doubles 2-3x a week. It was hot as a MFer tho... Back then the trick was to claim 10 dependents so NO FED taxes were taken out. That summer passed and i forgot about the 'trick'

Shit caught up with me 4yrs later when I had a real job - IRS were vicious! Back pay + interest + fines

[ChalkyDog]

Lol, mine was running a "chess school" - had some extra cash coming in, blamed it on that. They fukked with me a lot, but my dad is an accountant, and figured that shit out. Got real lucky I suppose.

The IRS terrifies me to shit, and I admittingly am not up with the code for shit.

I do know that I will never claim anything under 10K.

[Smoke]

You're going to jail

[lakerboy]

Never get more than 4k wired or its a red flag.

[ChalkyDog]

Never get more than 4k wired or its a red flag.

Is this fact? I have never had anything wired - but this is information you'd want going forward.

[itchypickle]

Guantanamo is nice this time of year. See you in around 13 years once they finally get to your case and decide it wasn't terror related and release you back into freedom.

[chilidog]

LOL at all the misinformation in this thread.

[ttrace35]

This is why I don't have a job.

[Smoke]

I hope Tyrone is your cellmate

No worries... He'll take good care you

[Monitor-Tan]

Show that you lost more then 5k or just pay the tax.

Remember the tax burden is on you.

The IRS does not have to prove that you won more then you lost.

YOU have to prove that you lost more then you won.

If I were you, pay the tax. If they ask why, just tell them you never got a 1099 form and forgot about it because it happened so long ago.

You will just have to pay the tax on that and a small fee possibly.

Don't make them dig around more on you then it needs to.

I'm actualyl surprised you got audited over such small amount

[Username9999]

It isn't illegal to gamble online. As someone else said, just say you lost a lot more than you won.

Think again. USA FEDERAL law is not prohibiting online gambling. Yet any incoming wires, has to be claimed in your taxes. If that isn't done. It's called INCOME TAX EVASION. People do go to jail for that.

[Justin7]

I've never heard of the IRS contacting someone about a wire. I'd lay -300 that this story is bogus.

[SpreadSniper]

fukk 'em...what could possibly go wrong?

This is my personal favorite....

[str]

I've never heard of the IRS contacting someone about a wire. I'd lay -300 that this story is bogus.

Absolutely.

[seaborneq]

Cheese, stop being a punk and tell the IRS to stay out of your accounts and business.

[alling]

If you declared the income and itemized the losses wtf are you crying about?

[Koldazzice]

You're fuked.

Sandusky is gonna eat your cheese.

this made me laugh

[Blacke]

The IRS is concerned that you didn't pay taxes on the 5k and any legal trouble you may or may not get into will be for not reporting your income properly on your tax returns...that is what the IRS is concerned with and what they can get you in trouble for and something that you can easily remedy by paying the taxes on the 5k and whatever penalties they charge you for the mistake.

Online gambling is not technically illegal, but they have no idea if you sold a jet ski to a guy in the Bahamas, run a prostitution ring in Guatemala, or place a few bets online...the IRS just knows/believes that you failed to properly report your income on your taxes...since the money isn't from being a waiter or by some other transaction that cannot be traced they can point to you the discrepancy between your actual income and reported income as the 5k wire because a record of it exists.

Meaning your problem is not HOW you obtained the 5k but that your failed to report the 5k.

If it were me I would try to minimize the IRS looking into my fiances any more than they already have, apologize for the accidental oversight and ask how I can fix the problem as quickly as possible. If that wouldn't satisfy them and make them go away I would then talk to a tax expert and use them as a resource to find the easiest/least painful way to make them go away. I would never offer to the IRS that the 5k was gambling related or offer any explanation as to how you obtained it and instead focus on it being an accident, and oversight, or a regrettable mistake that you want to make right.

[Blacke]

I've never heard of the IRS contacting someone about a wire. I'd lay -300 that this story is bogus.

Banks are required to report the 5k wire...most likely the bank reported the 5k being credited to their account then debited to his account and a red flag went up when the bank's paperwork says they put 5k into his account and his paperwork fails to mention the 5k at all.

[philswin]

bank must have filed a SAR (suspicious activity report) with the Govt

[Blacke]

or the IRS was looking for something else in the bank's paperwork and found this...assuming this tale is true it is highly unlikely that the IRS just found this based on his tax returns alone...but however they found he should be able to make them go away by paying the restitution because at the end of the day it is just 5k for an organization that grosses an average of about $7 billion per day and both looking for and chasing all of the 5k-ish mistakes people make on their tax returns is not cost effective, efficient, or even necessarily beneficial to them.

[Extra Innings]

The IRS samples ("audits") randomly, especially when your income changes drastically. They can look back a couple of years. It is quite possible your return was selected (especially if the wire was EXACTLY for $5,000), a big red flag in my opinion.

[Extra Innings]

The IRS samples ("audits") randomly, especially when your income changes drastically. They can look back a couple of years. It is quite possible your return was selected (especially if the wire was EXACTLY for $5,000), a big red flag in my opinion.

To support my opinion.

• Incomplete or sloppy returns — Math errors and missing information prompt scrutiny, as you’d expect. If the IRS computer can’t make sense of what you’ve filed, a human has to check to find the mistake. This is one reason to file electronically: computers help to catch bonehead errors.
• Unreported income — This is a no-brainer. If you file a return but fail to report income received, you’re heading for trouble. All of your interest, dividends, and miscellaneous incomemust be reported. Remember: everyone who sends you a 1099 is also sending one to the IRS.
• Suspiciously low income — If you’re making much less than others in the same profession, that raises a flag.
• Having a high income — Though fewer than one-percent of taxpayers are audited each year, those making over $100,000 are five times more likely to come under scrutiny.
• Drastic changes in income — Unexplained fluctuations in income can indicate that something was underreported somewhere. Most people don’t have income that swings wildly up-and-down, and the IRS knows it.
• Round numbers — It’s unlikely that your investment returns were exactly $500, or that your mortgage interest deduction was $10,000. Too many round numbers on a return are a symptom that something fishy may be going on.
• Too many charitable contributions — Charity is good, but too much charity can raise a red flag. If the average person in your income bracket donates about $1000 to charity and you claim you donated $5000, you’re going to increase the odds of an audit. Be sure to save your receipts!
• Participating in tax scams — The IRS is trained to deal with common evasion attempts.
• High itemized deductions — Again, anything too far from the averages is likely to bring your return to the attention of the IRS. There’s nothing wrong with claiming all of the deductions to which you are entitled, but be aware that if you have a lot of itemizations, you’re more likely to be audited.
• Disagreements between state and Federal returns — This is another example of how sloppiness can hurt you. Be sure that your information matches on both your state and Federal returns.

http://www.getrichslowly.org/blog/20...to-irs-audits/



Refers to the actual return but these are applicable for wire transfers as well

[Extra Innings]

bank must have filed a SAR (suspicious activity report) with the Govt

I heard many wires are handled by "processors" or intermediaries in the United States. Simply put, in my opinion once one is nailed I assure you they will follow up on all the other transactions handled by the firm, especially when the officers are facing long jail terms.

[Blacke]

He could have been chosen and audited randomly, but that is very highly unlikely and for them to even discover the 5k wire into his bank account the red flag had to be on his tax return because that is what they would use to even check his bank accounts. No red flag on his tax return would have kept the IRS from even seeing the wire transaction UNLESS they found the 5k wire checking red flags on something else at the bank and saw the 5k wire and through due diligence then checked his tax return.

[Blacke]

To support my opinion.

• Round numbers — It’s unlikely that your investment returns were exactly $500, or that your mortgage interest deduction was $10,000. Too many round numbers on a return are a symptom that something fishy may be going on.

The 5k wasn't reported if I understand the situation correctly so the round number on his tax return doesn't exist, the absence of the round number is what exists. Not having a 5k overseas wire transfer on your tax return is not a red flag.

[Extra Innings]

The 5k wasn't reported if I understand the situation correctly so the round number on his tax return doesn't exist, the absence of the round number is what exists. Not having a 5k overseas wire transfer on your tax return is not a red flag.

Yes, but I think from an anti-terrorist perspective a wire like 4944.11 would be less suspicious than one for 5000.00. If I was a gambling man receiving a transfer, either through a wire or "person to person", I would avoid the use of whole numbers, just looks out of the ordinary.

[downsouth]

-1000 this story is BS.

[Blacke]

Yes, but I think from an anti-terrorist perspective a wire like 4944.11 would be less suspicious than one for 5000.00. If I was a gambling man receiving a transfer, either through a wire or "person to person", I would avoid the use of whole numbers, just looks out of the ordinary.

If homeland security requires the IRS to automatically flag international wire transfers over a certaint amount the IRS would then look into his tax returns to explain/determine the money isn't part of a national security threat. Not being able to prove the 5k is not a threat to national security may now shift the burden of proof to the individual, making the only resolution to his potential threat on the nation is by demonstrating its providence and also paying the taxes and fees.

[Extra Innings]

If homeland security requires the IRS to automatically flag international wire transfers over a certaint amount the IRS would then look into his tax returns to explain/determine the money isn't part of a national security threat. Not being able to prove the 5k is not a threat to national security may now shift the burden of proof to the individual, making the only resolution to his potential threat on the nation is by demonstrating its providence and also paying the taxes and fees.

Sound Advice.

[Username9999]

-1000 this story is BS.

Do you even have the 1k to put up? Why do we have so many negative people on forums. Everything to them is B.S. yet when they create a thread. We are suppose to believe them. The reality is things like this REALLY DO HAPPEN. Income tax evasion is a crime. Perhaps you have never received a wire transfer before. Only because your a constant sportsbook LOSER.

[Shaudius]

He could have been chosen and audited randomly, but that is very highly unlikely and for them to even discover the 5k wire into his bank account the red flag had to be on his tax return because that is what they would use to even check his bank accounts. No red flag on his tax return would have kept the IRS from even seeing the wire transaction UNLESS they found the 5k wire checking red flags on something else at the bank and saw the 5k wire and through due diligence then checked his tax return.

As I understand it, when someone is audited, they ask you for your bank account information, or they ask you to sign a waiver for them to be able to look at it. This doesn't seem to be the case in the OP, so it is unlikely that this knowledge on the part of the IRS occurred as a result of an audit. What is more likely is what you said in your next post which is the the homeland security angle where the IRS found out about the 5k deposit because of banks reporting requirements regarding international wire transfers.

[InTheDrink]

Sick humblebrag op

You douche