Can one of u highrollers remind me what the maximum amount to cash out should be so u don't get flagged and have to worry about the taxman? I'm talking an offshore book here. Thanks!
cashing out sportsbook funds so u don't get flagged/taxed
- Thread starter SixFive
- Start date
- Feb 26, 2001
- 13,593
- 164
- 63
this article sez it is $10K.
and banks have to report and "suspicious" activity, even if under the $10k threshold. With all the terrorist investigations afoot, and sportsbooks an old way to launder money, there are probably many more of these "suspicious" reports being sent in.
DON?T GAMBLE WITH THE U.S. MONEY REPORTING LAWS!
Playing cute with transaction reporting can mean big trouble,
even for little players
by Martin Owens, Attorney at Law
(Copyright 2001. All Rights Reserved)
I am concerned, and disturbed, that another Web Page is giving advice that supposedly tells you the easy way to deal with, and report, offshore gambling winnings. The article in question gives the impression that it is acceptable and legal to import large amounts of money , provided this is done in small amounts that will ?come in under the radar? of Federal regulation. This technique is known as ? smurfing?. But following this advice could be a very costly mistake for anyone who tries it! I have researched this matter and found the following:
? Smurfing? is Not Legal!
Under Federal law ( 18 USC 1956, 31 USC 5313) both you and the bank MUST report transactions of $10,000 and up. And it is equally against the law for you to try to disguise a reportable transaction by splitting it up into many smaller ones. As far as Uncle Sam is concerned, structuring your transfers in little packets to evade transaction reports constitutes the crime of money laundering all by itself. You don?t have to be up to anything else illegal to fall foul of this law! (18 USC 1956 (B)(2)( ii) ). The little- packets technique, called ?smurfing? after the horde of little blue cartoon characters, is old news to the Feds. The dope cartels have been pulling it for thirty years. And getting caught at it. There is no reason for an honest player to fool with this dangerous technicality! If you?re going to report it all to the IRS anyway ( and you should) what?s the difference?
It is not safe to try!
Banks and financial institutions, in the US, of any size, are now required by law to watch out for, and report, any pattern of activity that could be? smurfing? or otherwise dodging the reporting requirements. For not cooperating with the Feds, the banks themselves can be punished ( 53 USC 5321). A stream of itty-bitty transactions is just the pattern they?re looking for! Financial institutions, as far the banking rules are concerned, includes casinos, check cashing facilities, even telegraph companies ( 53 USC 5312). And so I?m afraid I have to disagree with the other article?s definition of what?s ?safe?. There is no place that can?t be looked at. They wrote the law that way.
And the penalties for individuals caught breaking these laws can be severe. Possible punishments range from fines of double the amount of the transactions in question, right through to fines as high as $500,000 and sentences of twenty years in jail. ( 18 USC 1956(a)(1)(B)(ii)).
Don?t forget also that many states ( California, New York, Florida and many others) have similar laws regarding transactions reports, and similar penalties- meaning that you could be in trouble on two fronts at once, in two court systems.
It is Not Necessary!
So long as you?re winning honestly and not breaking any other laws, there?s no good reason NOT to declare your income properly! Far better to declare income and pay taxes, than to spend twice the amount you saved on criminal defense. If you are in doubt about your status, there are safe and sane ways to help yourself. Consult an attorney and a tax professional. Your problem may be no more than a need to identify income and investments under their correct categories, list detailed expenses, or a few minor penalties for incorrect filings. But the worst, the absolute worst thing you can do is make twenty trips a year with $5,000 in each pocket and hope they don?t notice!
If you want to gamble that you?ll get away with it, gamble that you?re not worth the trouble of prosecution, no one can stop you. But it?s a bad bet to make. For it is now clear that dawn of legal, worldwide Internet gambling is only a matter of time . Why risk a bright future?
( Mr. Owens is an attorney specializing in the problems of the Internet, E-commerce and online gambling. Feel free to send comments, questions and inquiries to
mowens@trade-attorney.com )
and banks have to report and "suspicious" activity, even if under the $10k threshold. With all the terrorist investigations afoot, and sportsbooks an old way to launder money, there are probably many more of these "suspicious" reports being sent in.
DON?T GAMBLE WITH THE U.S. MONEY REPORTING LAWS!
Playing cute with transaction reporting can mean big trouble,
even for little players
by Martin Owens, Attorney at Law
(Copyright 2001. All Rights Reserved)
I am concerned, and disturbed, that another Web Page is giving advice that supposedly tells you the easy way to deal with, and report, offshore gambling winnings. The article in question gives the impression that it is acceptable and legal to import large amounts of money , provided this is done in small amounts that will ?come in under the radar? of Federal regulation. This technique is known as ? smurfing?. But following this advice could be a very costly mistake for anyone who tries it! I have researched this matter and found the following:
? Smurfing? is Not Legal!
Under Federal law ( 18 USC 1956, 31 USC 5313) both you and the bank MUST report transactions of $10,000 and up. And it is equally against the law for you to try to disguise a reportable transaction by splitting it up into many smaller ones. As far as Uncle Sam is concerned, structuring your transfers in little packets to evade transaction reports constitutes the crime of money laundering all by itself. You don?t have to be up to anything else illegal to fall foul of this law! (18 USC 1956 (B)(2)( ii) ). The little- packets technique, called ?smurfing? after the horde of little blue cartoon characters, is old news to the Feds. The dope cartels have been pulling it for thirty years. And getting caught at it. There is no reason for an honest player to fool with this dangerous technicality! If you?re going to report it all to the IRS anyway ( and you should) what?s the difference?
It is not safe to try!
Banks and financial institutions, in the US, of any size, are now required by law to watch out for, and report, any pattern of activity that could be? smurfing? or otherwise dodging the reporting requirements. For not cooperating with the Feds, the banks themselves can be punished ( 53 USC 5321). A stream of itty-bitty transactions is just the pattern they?re looking for! Financial institutions, as far the banking rules are concerned, includes casinos, check cashing facilities, even telegraph companies ( 53 USC 5312). And so I?m afraid I have to disagree with the other article?s definition of what?s ?safe?. There is no place that can?t be looked at. They wrote the law that way.
And the penalties for individuals caught breaking these laws can be severe. Possible punishments range from fines of double the amount of the transactions in question, right through to fines as high as $500,000 and sentences of twenty years in jail. ( 18 USC 1956(a)(1)(B)(ii)).
Don?t forget also that many states ( California, New York, Florida and many others) have similar laws regarding transactions reports, and similar penalties- meaning that you could be in trouble on two fronts at once, in two court systems.
It is Not Necessary!
So long as you?re winning honestly and not breaking any other laws, there?s no good reason NOT to declare your income properly! Far better to declare income and pay taxes, than to spend twice the amount you saved on criminal defense. If you are in doubt about your status, there are safe and sane ways to help yourself. Consult an attorney and a tax professional. Your problem may be no more than a need to identify income and investments under their correct categories, list detailed expenses, or a few minor penalties for incorrect filings. But the worst, the absolute worst thing you can do is make twenty trips a year with $5,000 in each pocket and hope they don?t notice!
If you want to gamble that you?ll get away with it, gamble that you?re not worth the trouble of prosecution, no one can stop you. But it?s a bad bet to make. For it is now clear that dawn of legal, worldwide Internet gambling is only a matter of time . Why risk a bright future?
( Mr. Owens is an attorney specializing in the problems of the Internet, E-commerce and online gambling. Feel free to send comments, questions and inquiries to
mowens@trade-attorney.com )
