What to do with online winnings?

[salami5000]

I have accumulated a bankroll of $20,000 (I know it is not big to everyone, but I think it is), and I am looking to cash out. I am curious if anyone has heard of red flags being raised in the banking world if large sums are electronically deposited from gambling sites. (i.e. Is the IRS ever notified, etc.)

[EStreet20]

You should have reported that income already, if not I can't speak from experience but I do think they will be notified of that large an EFT.

[Freakin]

And if you try to structure your withdrawls so that they won't automatically notice, you'll be committing a felony, which is much worse than just paying taxes to begin with.

Freakin

[Neurotoxin]

My understanding is the amount that gets you flagged is $10,000. What's convenient is Neteller doesn't allow more than $5k a day in withdrawals by default.

[Smackdab]

[ QUOTE ]
My understanding is the amount that gets you flagged is $10,000. What's convenient is Neteller doesn't allow more than $5k a day in withdrawals by default.

[/ QUOTE ]

Financial institutions are also required to report any suspicious transactions. Several successive deposits of
1-3K over several days may also be reported.

[Nalapoint1]

ANY TRANSACTION $10,000 or more is reported. EFT, deposit,withdrawl. The bank fills out a form and sends it to irs.You are not notified this is being done.

[HFleen]

of course...you could have thought ahead and opened up an offshore bank in one of the still-safe tax havens in the Carribbean (Turks&Caicos, Nevis, Aguillia or even Belize) and then had the $ wired to that account. Then using your Mastercard issued from that offshore bank, you can withdraw up to $2k daily (least that's my limit) and there are NO reporting transactions tween these offshore banks and ANY tax dept of ANY country. Still. Tho...it's apparent that the US is using it's economic muscle to slowly get the last 40 or so tax havens to come around....sigh...
/images/graemlins/mad.gif
Jim

[FoodForThought]

Red flag or not, once you make an EFT, there is a record of your deposit. If the IRS decides to audit you and you did not declare....

[spkid]

It's true that $10,000 causes the bank to automatically report to the govt, and that structured transfers of less than that made in order to avoid the $10,000 rule will also be reported. BUT, in addition to that, any "suspicious" transactions of $5,000 or more will also be reported. What is suspicious is subjective, but leaving that decision to the banking institution is scary. Maybe small withdraws over time is a better answer...

[twowords]

[ QUOTE ]
It's true that $10,000 causes the bank to automatically report to the govt, and that structured transfers of less than that made in order to avoid the $10,000 rule will also be reported. BUT, in addition to that, any "suspicious" transactions of $5,000 or more will also be reported. What is suspicious is subjective, but leaving that decision to the banking institution is scary. Maybe small withdraws over time is a better answer...

[/ QUOTE ]

What if you cash poker withdraw checks at your bank. Is this a much less obvious paper trail? Would they still keep records of this?

[OrianasDaad]

Pay the taxes on it, and you'll have nothing to worry about. Plenty of threads on that subject.

[jcx]

[ QUOTE ]
of course...you could have thought ahead and opened up an offshore bank in one of the still-safe tax havens in the Carribbean (Turks&Caicos, Nevis, Aguillia or even Belize) and then had the $ wired to that account. Then using your Mastercard issued from that offshore bank, you can withdraw up to $2k daily (least that's my limit) and there are NO reporting transactions tween these offshore banks and ANY tax dept of ANY country. Still. Tho...it's apparent that the US is using it's economic muscle to slowly get the last 40 or so tax havens to come around....sigh...
/images/graemlins/mad.gif
Jim

[/ QUOTE ]

Unless the IRS already thought of that...

http://www.usdoj.gov/tax/usaopress/2002/txdv022002_03_25_visa.html

[Tboner7]

So as long as you add what you withdraw to your taxes at the end of the year, there shouldn't be any problems?

[Petomane]

The threads of pay your taxes & you'll have no worries are of course idiotic. Not while these taxes are being spent on criminal wars of aggression - that's a bigger worry. Take that money & spend it with local businesses - you'll really be helping the economy & your community.
The IRS doesn't think one can make money gambling. Just show receits you lost a bigger amount gambling. The IRS respects receits. It's really that simple.

[Tboner7]

[ QUOTE ]
The threads of pay your taxes & you'll have no worries are of course idiotic. Not while these taxes are being spent on criminal wars of aggression - that's a bigger worry. Take that money & spend it with local businesses - you'll really be helping the economy & your community.
The IRS doesn't think one can make money gambling. Just show receits you lost a bigger amount gambling. The IRS respects receits. It's really that simple.

[/ QUOTE ]

How would you get a receipt showing that?

[Freakin]

[ QUOTE ]
The threads of pay your taxes & you'll have no worries are of course idiotic. Not while these taxes are being spent on criminal wars of aggression - that's a bigger worry. Take that money & spend it with local businesses - you'll really be helping the economy & your community.
The IRS doesn't think one can make money gambling. Just show receits you lost a bigger amount gambling. The IRS respects receits. It's really that simple.

[/ QUOTE ]

So you're going to forge a bunch of receipts for live play or something? Are you being serious? Either pay your taxes, or don't pay them and risk paying penalties + interest later. Don't get involved in felony to defraud the government. How stupid can you be?

Freakin

[OrianasDaad]

It's not like I agree with US tax laws. I'm all in favor of a consumption tax instead of payroll taxes.

Not paying your taxes is just inviting trouble, however.

[obsidian]

[ QUOTE ]
The threads of pay your taxes & you'll have no worries are of course idiotic. Not while these taxes are being spent on criminal wars of aggression - that's a bigger worry. Take that money & spend it with local businesses - you'll really be helping the economy & your community.
The IRS doesn't think one can make money gambling. Just show receits you lost a bigger amount gambling. The IRS respects receits. It's really that simple.

[/ QUOTE ]
Yea, forging receipts. That's a great way. I'd go with that one.

[Petomane]

Who said anything about forging? I have real receits & that's all that counts.

[Guthrie]

[ QUOTE ]
The threads of pay your taxes & you'll have no worries are of course idiotic. Not while these taxes are being spent on criminal wars of aggression - that's a bigger worry. Take that money & spend it with local businesses - you'll really be helping the economy & your community.
The IRS doesn't think one can make money gambling. Just show receits you lost a bigger amount gambling. The IRS respects receits. It's really that simple.

[/ QUOTE ]

Fine. Stop driving on my freeways.

[pretender2k]

anything $3000 or above in one 24 hour period will be one form. $10000 or above in 24 hours will definitely make to the IRS. I agree though if you have reported as income their is no prob

[jayboo]

Does neteller report its transactions to the irs or is it just the banks that do?
If someone withdrew to neteller and then funded the debit card and withdrew the max everyday for however long it took to get the full cash out would this go under the radar?
p.s. please don,t respond to this question if it's to lecture on why someone should pay taxes, blah, blah, blah. Many of us have full time jobs and get raped 1/3 of our checks on a weekly basis. Thanks Jay

[MicroBob]

[ QUOTE ]
Just show receits you lost a bigger amount gambling. The IRS respects receits. It's really that simple.

[/ QUOTE ]



ummm, no it isn't.

They can look into your bank records and it will pretty obvious how much you have made.

In my case...if I try to report that I lost money on gambling then the IRS would wonder how the hell I've been able to live as I have no other source of income.