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...
[img]/images/graemlins/mad.gif[/img]
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?