So what are some ways to prevent too much of a paper trail to bring up an audit? I use neteller right now and have used western union in the past to send money.
What are some ways to get your money and not get your door broken down on night at 11pm by the guys in the "black coats"?
Any advice on this would be fantastic to myself and others here.
What are some ways to get your money and not get your door broken down on night at 11pm by the guys in the "black coats"?
Any advice on this would be fantastic to myself and others here.
Sportsrmylife - I cant really help you there except to state the obvious.
Any time you do a US banking transaction it is traceable. So if you are receiving EFT deposits from neteller those are traceable (but not automatically reported to IRS). If you get a check from a sportsbook that is also traceable if you deposit it.
Basically - everything I know other than cash transactions are traceable.
Now I am not an expert. Maxdemo posted above that he has a 3rd party service - these are things that might be useful for you to find out.
Now all of this being said - NOTHING IS AUTOMATICALLY REPORTED TO THE IRS OTHER THAN W2G's OR OTHER 1099 INCOME FROM CASINOS. So if you get a check from a sportsbook for 500k - it is not reported automatically. It is traceable, but not reported.
GL
Any time you do a US banking transaction it is traceable. So if you are receiving EFT deposits from neteller those are traceable (but not automatically reported to IRS). If you get a check from a sportsbook that is also traceable if you deposit it.
Basically - everything I know other than cash transactions are traceable.
Now I am not an expert. Maxdemo posted above that he has a 3rd party service - these are things that might be useful for you to find out.
Now all of this being said - NOTHING IS AUTOMATICALLY REPORTED TO THE IRS OTHER THAN W2G's OR OTHER 1099 INCOME FROM CASINOS. So if you get a check from a sportsbook for 500k - it is not reported automatically. It is traceable, but not reported.
GL
No freebie it is not traceable.
BUT - the Irs has promised crackdowns on visa, MC, and debit cards from foreign banks. How they plan on doing this I have no idea but this is a common problem for them apparantly outside of the gambling world.
Lots of people set up Bahamian or Cayman bank accounts with debit visa cards tied to them and then just spend that money without declaring it as taxable. The IRS does know about it and from what I have read they plans on stopping it - but who knows if that is true or not.
These are obviously sovereign countries with legal banking institutions so they are not liable - YOU ARE!! But I cant imagine how they could ever get at this information. But who knows.
BUT - the Irs has promised crackdowns on visa, MC, and debit cards from foreign banks. How they plan on doing this I have no idea but this is a common problem for them apparantly outside of the gambling world.
Lots of people set up Bahamian or Cayman bank accounts with debit visa cards tied to them and then just spend that money without declaring it as taxable. The IRS does know about it and from what I have read they plans on stopping it - but who knows if that is true or not.
These are obviously sovereign countries with legal banking institutions so they are not liable - YOU ARE!! But I cant imagine how they could ever get at this information. But who knows.
Lots of people set up Bahamian or Cayman bank accounts with debit visa cards tied to them and then just spend that money without declaring it as taxable. The IRS does know about it and from what I have read they plans on stopping it - but who knows if that is true or not.
If you open a bank account in a foreign country (and you're a U.S. citizen) U.S. law requires both you and the bank opening the account to report it to the IRS. If you fail to do so (there's a line on the 1040 that asks if you have an offshore account) it is a crime that will lead to LOTS of scrutiny. If the country where you are opening the account does not abide by this rule, it is considered a "rogue" banking system and is subject to all sorts of U.S. sanctions. The days of easily hiding things offshore are gone. Be very skeptical of any plan that says otherwise.
If you open a bank account in a foreign country (and you're a U.S. citizen) U.S. law requires both you and the bank opening the account to report it to the IRS. If you fail to do so (there's a line on the 1040 that asks if you have an offshore account) it is a crime that will lead to LOTS of scrutiny. If the country where you are opening the account does not abide by this rule, it is considered a "rogue" banking system and is subject to all sorts of U.S. sanctions. The days of easily hiding things offshore are gone. Be very skeptical of any plan that says otherwise.
grnmax said:
if you open a bank in a foreign country UNDER YOUR OWN NAME for purposes of hiding money you GET WHAT YOU DESERVE......its too damn obvious like grnmax pointed out
the PROPER way to do it is via a corporation.................(And the IRS will probably get to those in the future too but for now I am sure they have their hands full with the thousands of people that has said offshore credit cards /debit cards)
Not disclosing ownership in an offshore corporation also requires lying in response to a very specific question on the 1040 form. The fine print says it is perjury, and it will land you in jail. If you don't get audited its a great way to hide things, but so are a lot of other ways. Just be very careful and make yourself very knowledgeable if you (anyone) decide to go this route.
Guys - I did some research on the Neteller debit card.
Bad news. Debit cards (as opposed to offshore visa or mastercards), even if they are from an overseas bank, are assisted by a local US bank. In netellers case they have a bank located in LA that gets money transferred to it from Neteller in order for you to use it.
BECAUSE YOUR TRANSACTION IS WITH A USA BANK IT IS ALL TRACEABLE BY THE IRS!!
So all of you that think you are hiding transactions by using the Neteller Debit Card you better think again.
Bad news. Debit cards (as opposed to offshore visa or mastercards), even if they are from an overseas bank, are assisted by a local US bank. In netellers case they have a bank located in LA that gets money transferred to it from Neteller in order for you to use it.
BECAUSE YOUR TRANSACTION IS WITH A USA BANK IT IS ALL TRACEABLE BY THE IRS!!
So all of you that think you are hiding transactions by using the Neteller Debit Card you better think again.
vanzack said:
Instead of admitting that you are a "player" just turn it around and say that you are a maker. With Federal Tax stamp you are supposed to give the Fed's 2% of Gross amount wagered. Now on the other hand they have NO idea how much was really wagered so you can give them amount whatever you wish. They really do look at it like, Well thats more than we
had!
You can even set it up monthly or quarterly
It does work !
vanzack said:
My understanding is that the session concept applies most clearly to casino or poker play. A session presumeably lasts from when you enter the gaming room until you leave that room.
I understand this concept was introduced in recent years replacing the requirement to keep track of all your bets. For poker players to track every bet into the pot is patently ridiculous.
For sportsbettors the session concept likely doesn't apply since you track each and every single bet.
I track all the action that I make with my after tax dollars, but coming from an enlightened jurisdiction am not subjected to double taxation on my entertainment.
Your point about losing standard deductions and having to pay for the privilege of gaming, even when you break even, has been well worked in the poker literature. As long as goverment equates this as a social evil you are unlikely to find any redress in the tax code.
vanzack said:
I dont have a 3rd party service. The book I have been using exclusivly is 5dimes. They offer you payouts via Western Union to anybody you want. So I give my neighbor a few bucks to go pick some $$ that i have transfered to his name. They also will alow me to send money via Western Union to them using any name I want so I make one up. But since they use Money Gram as a deposit method I also use that service with a fake name:toast:
