If I do a wire withdrawal from an offshore sportsbook, will my bank report it? If so, can I keep the withdrawal under $10,000 to avoid it being reported? Thanks.
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keep it under $10k u will be okComment -
As an electronic method of deposit there is no IRS reporting (because there is already a paper trail through the banks with a wire). You could get a $100,000,000 wire and it won't get reported independently to the IRS. Because if the IRS ever has any question about that wire they can go to the Federal Reserve (which handles all wires into and out of the US) to get full documentation to see where it came from, what bank, from whom, etc. Something that is not available with a cash deposit. That's why cash deposits require IRS reporting. If you deposit cash over $10,000 into a bank account the bank is required to report it to the IRS because cash cannot be traced. So the IRS reporting of cash into an account helps begin a paper trail should anyone have any questions (i.e. big brother). However the IRS reporting is not as scary as it may seem. In gambling I have gone to Vegas multiple times a year, deposited substantial cash, and never had an issue. Takes an extra three minutes for them to complete the form and send it in. Thousands of these cash documents get sent to the IRS every day. They don't monitor them. They just get stored at the IRS and if the feds have a question about you or have issues with your taxes then they might look you up. For 99% of people they will just sit in the file until we are all dead and gone. IRS has more important things to do. If every two days you are depositing over $10,000 into a non-business account then you might have some issues.
If you ever have $10,000 or more in cash to deposit it is better to deposit it as one lump sum and have the bank file the doc. It has no tax implications at the time of filing. If you have $30,000 in cash and try depositing it as four $7,500 deposits to avoid the reporting, that is called "structuring" and is very illegal and can lead to forfeiture of the money and a federal felony. It is better just to report it.Today is the tomorrow we worried about yesterday.Comment -
Thanks for the info. I have $45,000 to withdraw, so I don't know if it's better to take the free $3,000/week payout via instant deposit transfer & wait like 4 months to be paid off or pay for the wire(s) to get my money much faster but possibly face issues. If I withdraw $9,000 via wire five times spread out every week or two, would that draw any unwanted attention?Comment -
I second this comment. It is better to report and handle it properly than try to sneak money in or play some game. In a worst case you pay a little tax however even that is rare. It's a lot better than facing 3 years in prison and fines of up to $250,000 depending on the issue.Today is the tomorrow we worried about yesterday.Comment -
Guys, the important question is, how does he explain the winnings in tax returns?...he cant say offshore illegal gambling right?Comment -
You report "gambling winnings." Not only does the IRS not care where your income originates, there is actually a law preventing them from passing your tax return on to other government agencies for prosecution of crimes (and those agencies cannot use your tax return against you). In theory, you could list "drug dealing" income without repercussion. The IRS is only concerned with tax evasion and other tax code violations, nothing else.
Additionally, offshore gambling is not illegal on a federal level, and is only illegal on the state level if your state specifically has such a law.Comment -
I don't think the IRS really cares about anything less than 100k, which is considered a thret to the money supplyComment -
The wire act applies to interstate betting. You are not betting interstate. You are betting international. However nobody has ever been prosecuted on a Federal level as a gambler. As a bookie, promotion of gambling, and so on has been prosecuted by the Feds but again you will never find one person arrested or tried for betting offshore on the federal level. The Supreme Court actually shot down a law about ten years ago because it would criminalize the bettors and the court felt that was not something government needed to be involved in. Most states have ZERO laws against being a gambler. Some states do but for most they only criminalize the acceptance of bets and not the placing of them. Just be aware of how your state operates but even then most players betting thousands of dollars are not worth even your state attorney general's time. Again, you REALLY have to search hard to find people prosecuted for being gamblers.
It is important to reread what John Dough said as it is 100% correct. The IRS does not care how you get the money so long as you pay your taxes. They will not report you to any other government authorities.
There is a lot of paranoia on these forums and it is often unfounded as is the case here. You can legally claim all offshore winnings and losses in your annual tax return. To put it frankly = nobody in government or law enforcement, even if it were illegal, would give a $hit about any of the amounts anyone in these forums was betting. They have plenty more important things to worry about then Joe Blow from Texas who gets a $15,000 wire from 5Dimes.Today is the tomorrow we worried about yesterday.Comment -
All good info just got a small wire and was a little worriedComment -
thought this thread was about the tv series....Comment -
Excellent thread and info. A real diamond in the Sbr rough.Comment
