actually it is DEPOSITS totaling OVER 10k in any 30 day period
so if you make 3 deposits of $3500 in a 30 day period a transaction report is generated
also any suspicious activity is reported by the teller. so if the teller thinks it is suspicious she/he fills out a report regardless of the amount.
if you take out a grand in cash, even though it is none of their business you should make a comment like, can you give me nice bills these are going in cards for upcoming graduations or if you are putting in cash, comments like, I just sold my fathers old clock on craigslist... that way the teller isn't left to their imagination
the former speaker of the house was taking out money in 4 or 5 grand chunks over a period of months, he thought he would avoid suspicion. then when the fbi asked him about it he lied about what it was for.
he was using it to pay off someone blackmailing him. paying a blackmailer is not illegal
taking money out of the bank in small amounts to avoid reporting is illegal
then on top of that
he lied to the fbi
if he would have taken it all out at once and then told the fbi that he gave the money to a friend they could not charge him with anything
he was using it to pay off someone blackmailing him. paying a blackmailer is not illegal
taking money out of the bank in small amounts to avoid reporting is illegal
then on top of that
he lied to the fbi
if he would have taken it all out at once and then told the fbi that he gave the money to a friend they could not charge him with anything
no attorney, just been around awhile.
also just to add to my previous comments.
the IRS and banking system are not magically tied together, banks don't tell the IRS anything unless it's a 1099 showing the interest they paid you.
now if the IRS asks, the banks will give.
the key is if and when the IRS ever asks your bank to give information, can you explain and account for that info?
you don't want an IRS agent looking at 3 years of banking transactions showing all your deposits are always just under reporting limits... you just have to have an answer to their questions that doesn't not self incriminate
Buddyboy, just the man I think I'm looking for. So I live in the U.S., California to be exact and no there is no law against placing a bet, but you say there is a law against movement of money...does that also mean spending money overseas to gamble on an offshore sports betting website? Is that where the law comes against offshore sports betting? And why can't I just deposit this cash as fast as I want into the bank as long as I claim it as income on my tax returns since placing a bet is not illegal by California or Federal Law? How could I possibly be in trouble then?
To put it simply: Is the only way I can get in trouble betting sports online through an offshore account, is if I win my wagers, deposit them in the bank and then not report it as income? Which you would be in the same trouble if you didn't record winnings you had in Las Vegas...
Same as anywhere....OVER 10,000 in any single days transactions generates an automatic report, has nothing to do with 30 days. Financial institutions can and do report smaller transactions if they think they may be questionable.
Between the Patriot Act and the GLB Act they have made it much tougher to skirt the system easily.
Ok, so if you guys know, how can I get into trouble with online sports betting? How do I avoid trouble? It sounds like the only thing I can be hit for is tax evasion, which if you don't declare anything substantial (even if its straight from Vegas) you will get it anyway so is that it.....just claim your winnings on your taxes and you are fine?
let me just say this, banks can be held responsible for their customers money laundering activities, IF they are not compliant with certain procedures and record keeping. banks like to cover their ass so they do everything in their power to be compliant.
one of the things banks do is to deploy BSA / AML software. it looks at each and every customers account(s) and tries to ID patterns that can be prosecuted as money laundering or structuring. mostly what they are looking for are CASH deposits or withdrawals that look like smurfing.
Buying a $3000 money order with CASH triggers reports, but buying a $3000 money order with money in your account doesn't.
so Mr. Smart Guy thinks he can overcome this easily by depositing $300 a week in cash for 10 weeks and then buying a $3000 money order with the money in his account. that is what the software is for, it can ID patterns like this.
so Mr. Smart Guy gets sneakier, he deposits a little cash, then gives some cash to his friend who writes him a check that he deposits to his account and so and and so on till he gets his $3000 cash converted to his account so he can get that money order to send back to Pablo in S.America to cover the cost of the last shipment of blow.
well, if Mr. Smart Guy does this a few times a pattern will develop, and his name gets put on a list.
99.99% of the time a guy goes down because of the laws he broke trying to hide activity that is embarrassing but not illegal.
deposit 20 grand cash in your bank account, and yes a CTR will be generated on you...so what? now someone has to prove that 20 grand was illegal.
make a deposit of 5k then a week later 6k and a week later 4k and then a week later 5k they have you... no need to prove that 20k was from illegal activity, structuring those deposits in order to keep them under reporting limits is the crime.
one of the things banks do is to deploy BSA / AML software. it looks at each and every customers account(s) and tries to ID patterns that can be prosecuted as money laundering or structuring. mostly what they are looking for are CASH deposits or withdrawals that look like smurfing.
Buying a $3000 money order with CASH triggers reports, but buying a $3000 money order with money in your account doesn't.
so Mr. Smart Guy thinks he can overcome this easily by depositing $300 a week in cash for 10 weeks and then buying a $3000 money order with the money in his account. that is what the software is for, it can ID patterns like this.
so Mr. Smart Guy gets sneakier, he deposits a little cash, then gives some cash to his friend who writes him a check that he deposits to his account and so and and so on till he gets his $3000 cash converted to his account so he can get that money order to send back to Pablo in S.America to cover the cost of the last shipment of blow.
well, if Mr. Smart Guy does this a few times a pattern will develop, and his name gets put on a list.
99.99% of the time a guy goes down because of the laws he broke trying to hide activity that is embarrassing but not illegal.
deposit 20 grand cash in your bank account, and yes a CTR will be generated on you...so what? now someone has to prove that 20 grand was illegal.
make a deposit of 5k then a week later 6k and a week later 4k and then a week later 5k they have you... no need to prove that 20k was from illegal activity, structuring those deposits in order to keep them under reporting limits is the crime.
I appreciate the back drop, but let me ask it as simply as this: How can I get into legal trouble betting on offshores sportsbooks? I just want that question answered. There is no federal law against placing an online wager and there is no local law here (contrary to South Dakota or Washington) against it either so how can I get into trouble? Why should I have to be sneaky about how I deposit these checks?
exactly my point... if you are comfortable in what you are doing is not in violation of any laws then you should have no fear.
your only concern is to be in compliance with the IRS or to be in a position to successfully defend your position that you are in compliance with the IRS
every person is different, it really depends on the sums of money we are talking about. your concern should increase at the same level of cash involved
