Legality and Withdrawl

[what is 7x6]

What are the ramifications of withdrawing money from the online sites? For example, a 20k wire transfer to your bank account.

1) Is that Illegal in any way?
2) Is it red flagged by the IRS?

Obviously you have to pay taxes, this is not a tax question. More a legal question.

Thanks

[Skallagrim]

There is nothing illegal about withdrawing money from a poker site.

A transaction over 10K is generally subject to reporting requirements, with some exceptions. The poker sites dont do any reporting, of course, but you or your bank may be required to (you have to wait for the financial experts to respond or look it up yourself). Not doing the reporting if you are required to is a serious crime. So is structuring transactions to avoid the requirement.

Those reports of over 10K transactions do get to the IRS.

Skallagrim

[sup_bro]

skall summed it up 7x6, my jewish investment banking friend from manhattan....nothing illegal about it at all....

[what is 7x6]

lol sup bro, who are you? As it is clear you either know me or know of me, but have some outdated information.

Skall, what do you mean by structuring transactions? Obv not reporting income as to avoid taxes is a crime, and is simply stupid in my mind when you have wire transfers and checks to show income. Except for losses to offset wins, the irs will unfortunately get its share of the pie from me. I guess by structuring you meant some way to conceal money.

[Skallagrim]

No, its not about concealing the money (well it is sort of), its about hiding the need to report the transaction. Say you sell your car for 12K cash and want to deposit that into your bank. Your bank will have to report that transaction to the Feds cause its over 10K. If you instead make two 6K deposits, you are "structuring" to avoid the reporting requirement and that is a crime in and of itself.

I know the reporting requirement always applies to a cash transaction - I cant recall off the top of my head what other kinds of transactions it does or does not apply to.

Skallagrim

[what is 7x6]

That seems odd. If you are reporting all transactions at the end of the the year anyway, what does it matter if you do 2 6k's or 1 12k? From my perspective, if i cashout say 6k a week from online poker, rather than 12k every 2 weeks, is that a crime? Doesnt make sense to me, since at the end of the day, i pay tax on every cent i make.

[Skallagrim]

Nowhere in the constitution is there a requirement that the laws passed by congress make sense....

Explains a lot doesn't it?

Skallagrim

PS - it does help a little if I tell you that part of what they have to prove to convict you of "structuring" is that you deliberately divided the transaction to avoid reporting it.

[Dave D]

As long as you pay the taxes you'll be fine w/ regard to structuring. It makes more sense to think of structuring as a crime in situations where you have 100k, and you deposit it in $9999 increments. Get it? In that situation you're depositing in such a way as to avoid having to report it. That's bad.

[Kurn, son of Mogh]

That's not it.

If you bring the $12k over, do not report it on your income and the IRS notices, they will bill you for taxes due plus interest and penalties. You say "opps, forgot (or didn't know I had to)" and pay up, or set up a payment plan and all is OK. Actually you don't even have to explain why you omitted that income if you agree to pay.

However, if you bring the money over in several small amounts, don't claim the income and they catch you, your actions show intent, and that's why structuring is treated more harshly.

If you claim it and pay in a timely manner, you're in compliance and how you brought the money over is irrelevant.

Remember, the primary job of the IRS is to get the money. They are not an arm of the DOJ.

[MegaDisgruntled]

Oh, btw, my bank has now informed me that all transactions 3k+ are submitted. It's no longer 10k.

Mega