Re: Feedback On Neteller Debit Card Needed
 

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My understanding is that NT is essentially an offshore account and that the debit cards are untraceable. No way of Big Brother tracking $$ in or out if used for cash withdrawals.

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Aside from being a bad idea, I think this is untrue. I think the NETeller debit card works through a US-based bank.

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Yep - untrue. The simple fact is that if you get audited, they'll find out about your Neteller account, get the details from Neteller, which will show all your debit card transactions.

Re: Feedback On Neteller Debit Card Needed
 

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My understanding is that NT is essentially an offshore account and that the debit cards are untraceable. No way of Big Brother tracking $$ in or out if used for cash withdrawals.

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Aside from being a bad idea, I think this is untrue. I think the NETeller debit card works through a US-based bank.

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Yep - untrue. The simple fact is that if you get audited, they'll find out about your Neteller account, get the details from Neteller, which will show all your debit card transactions.

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Really? And how will they find out about your neteller account? Is Party Poker going to tell them? Is NT going to volunteer the info. NT is domiciled in the Isle of Man and not subject to US banking laws. That's one of the reasons your NT card has no name on it.

So let's set up a hypothetical: Jim opens a NT account and does an EFT for $1,000. A month later he has run that up to $3,000 on PP. He then does an EFT back to his original account for $1500. During the course of the year he turns the $1500 in his NT account into $20,000 and takes out $1,000 a month on his NT debit card. No money ever goes through his US bank accounts. At the end of the year he reports a net win of $500 on his taxes.

You are making assumptions about how the IRS and tax audits are conducted that simply aren't true.

Re: Feedback On Neteller Debit Card Needed
 

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My understanding is that NT is essentially an offshore account and that the debit cards are untraceable. No way of Big Brother tracking $$ in or out if used for cash withdrawals.

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Aside from being a bad idea, I think this is untrue. I think the NETeller debit card works through a US-based bank.

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Yep - untrue. The simple fact is that if you get audited, they'll find out about your Neteller account, get the details from Neteller, which will show all your debit card transactions.

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Please note that this is not what I was trying to say. I really don't know what happens if you get audited in regards to your NETeller account. But I am pretty sure that the ATM/debit card transactions are processed through some bank in the United States and are hence far from "off the grid."

Re: Feedback On Neteller Debit Card Needed
 

as far as audits, a friend of mine (a fellow attorney) thinks, but doesnt know, that the IRS can do the following:

First, Neteller will appear somewhere on your bank statements, which you will provide to the IRS as part of the audit (or which they can get easily).

Second, they notice Neteller on there. Since the aren't stupid, they know there's a 98% chance its related to online wagering.

Third, they cant get the info from Neteller. SO THEY GET IT FROM YOU. They ask you for it. You decline.

They demand that you produce the Neteller records. you decline.

They impute (read: guesstimate ridiculously high) income to you, tax you on it, begin charging interest and penalties, until you pay or produce the records to prove you really made less online, (but, if you pay this ridiculously high tax, they will know they guessed LOW and really get after you in succeeding years), or:

Finally, they sue you, and as part of court-supervised discovery, get the JUDGE to order you to produce the Neteller records, and get you fined/punished for contempt if you fail/refuse to produce the records. All the while you are still on the meter for the imputed taxes and penalties.

I havent researched it. But it seems to me that the best way to fund your Neteller is to avoid your bank entirely. Send Neteller a money order and never, ever, involve your bank.

If you have already besmirched your bank statement with Neteller transactions, consider closing your bank account. Then open an account at a new bank that never touches Neteller. Then, hopefully if a couple years pass before you get audited, IRS wont request or scrutinize those old statements from the old Neteller-tarnished bank.

Just a couple thoughts.

Re: Feedback On Neteller Debit Card Needed
 

the debit card company that neteller uses is located in Texas. The money enters the united states through that bank.

FSV

This a link to the debit cards website.