Neteller and the IRS

[DING-DONG YO]

[ QUOTE ]
A question about SARs and structuring. I pay all my taxes honestly. However, due to the neteller $5K EFT limit, i have a bunch of $5k EFTs into my bank instead of one larger one. Am i doing anything wrong or breaking any law? Can i possibly be accused of structuring even though I report and pay taxes on all my winnings?

[/ QUOTE ]

If you pay all your taxes and can tie all your activity to your tax return, don't worry about structuring. Tax evasion is illegal.

I don't think structuring is illegal. It is a tool people who are committing tax fraud use. therefore, the government looks for structured transactions as a guide on who to investigate for tax evasion. That doesn't mean that everyone who appears to be "structuring" transactions is evading taxes. But it does mean that if your transactions appear to be "structured", you run a higher risk of being audited.

As long as you're paying and can back up your records, I wouldn't worry about it. You get audited, you get audited.

[Freerollin`]

[ QUOTE ]
[ QUOTE ]
A question about SARs and structuring. I pay all my taxes honestly. However, due to the neteller $5K EFT limit, i have a bunch of $5k EFTs into my bank instead of one larger one. Am i doing anything wrong or breaking any law? Can i possibly be accused of structuring even though I report and pay taxes on all my winnings?

[/ QUOTE ]

If you pay all your taxes and can tie all your activity to your tax return, don't worry about structuring. Tax evasion is illegal.

I don't think structuring is illegal. It is a tool people who are committing tax fraud use. therefore, the government looks for structured transactions as a guide on who to investigate for tax evasion. That doesn't mean that everyone who appears to be "structuring" transactions is evading taxes. But it does mean that if your transactions appear to be "structured", you run a higher risk of being audited.

As long as you're paying and can back up your records, I wouldn't worry about it. You get audited, you get audited.

[/ QUOTE ]

Structuring transactions is certainly illegal. However, complying with Neteller's EFT maximum and paying your taxes in whole is not structuring.

[DING-DONG YO]

[ QUOTE ]
Structuring transactions is certainly illegal. However, complying with Neteller's EFT maximum and paying your taxes in whole is not structuring.

[/ QUOTE ]

Riddle me this then. If you're paying all your taxes in full and can back up everything, then you can't be structuring. Correct?

Tax evasion is illegal, structuring transactions is a tool used by tax evaders.

FWIW, I think we're saying the same thing.

[167-169]

Neteller card.
Never use EFT.

Just withdraw all funds from ATM.
No?

[DING-DONG YO]

[ QUOTE ]
Neteller card.
Never use EFT.

Just withdraw all funds from ATM.
No?

[/ QUOTE ]

It amazes me that I still hear this.

NO

There is a record of it as all ATM transactions that occur in the US are processed through an American bank. There is still a paper trail.

This has been discussed ad nauseum in this forum but I'm actually glad you brought it up. Good to dispel that myth once again for those that may think it is kosher.

Just pay your taxes and you'll be fine.

[The Don]

Attention everyone:

Stop assuming things. Just because you don't want to get audited (it's a huge bitch from what I hear) doesn't mean that you aren't going to pay your taxes.

[Percula]

[ QUOTE ]
[ QUOTE ]
Structuring transactions is certainly illegal. However, complying with Neteller's EFT maximum and paying your taxes in whole is not structuring.

[/ QUOTE ]

Riddle me this then. If you're paying all your taxes in full and can back up everything, then you can't be structuring. Correct?

Tax evasion is illegal, structuring transactions is a tool used by tax evaders.

FWIW, I think we're saying the same thing.

[/ QUOTE ]

Structioning is a federal felony. The act of structuring your transactions to avoid the reporting requirement for $10K is the problem. It has nothing to do with taxes.

[primetime32]

[ QUOTE ]
Is Neteller required to submit account information to the U.S. gov?

[/ QUOTE ]

They aren't required to but transactions between neteller and your bank and your neteller ATM can be traced.

However, i can't imagine neteller ever doing anything the US government asks after what just passed.

[Freerollin`]

[ QUOTE ]
[ QUOTE ]
Structuring transactions is certainly illegal. However, complying with Neteller's EFT maximum and paying your taxes in whole is not structuring.

[/ QUOTE ]

Riddle me this then. If you're paying all your taxes in full and can back up everything, then you can't be structuring. Correct?

Tax evasion is illegal, structuring transactions is a tool used by tax evaders.

FWIW, I think we're saying the same thing.

[/ QUOTE ]

No, we are not. Structuring taxes to avoid the reporting requirement - regardless of intent to evade taxes - is illegal.

31 USCS § 5324: Structuring transactions to evade reporting requirement prohibited

(a) Domestic coin and currency transactions involving financial institutions. No person shall, for the purpose of evading the reporting requirements of section 5313(a) or 5325 [31 USCS § 5313(a) or 5325] or any regulation prescribed under any such section, the reporting or recordkeeping requirements imposed by any order issued under section 5326 [31 USCS § 5326], or the recordkeeping requirements imposed by any regulation prescribed under section 21 of the Federal Deposit Insurance Act [12 USCS § 1829b] or section 123 of Public Law 91-508 [12 USCS § 1953]--
...[subsections 1&2 omitted]...
(3) structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more domestic financial institutions.

[DING-DONG YO]

[ QUOTE ]
reporting requirements of section 5313(a) or 5325 [31 USCS § 5313(a) or 5325]

[/ QUOTE ]

This is where I'm confused. Is this the requirement that you report foreign accounts over 10K?