Neteller and the IRS

[Unabridged]

$10,000 is not the reporting limit for banks, it is $3,000
one check a week, keep it comfortably below $3000 (not $2950, anything close is reported the same as $3000)

directly from IRS manual:
4.26.5.6 (01-01-2003)
Recordkeeping
6. A record of money transfers of $3,000 or more (regardless of the amount of currency involved) must be made and retained. 31 C.F.R. 103.33.

[curious123]

record != report

[Jeffage]

My understanding is that banks are required to internally document cash transactions over 3k to make sure a person isn't structuring to avoid the 10k reporting threshold.

Jeff

[PokeReader]

Everyone shouldn't be so sure Neteller will stand up if the U.S. gov't tells them they are in violation of this legislation. Neteller currently does not serve customers in Maryland because the state told them they were aiding and abetting a felony. If they caved to a state gov't I don't think they will stand up to the federal government for long. Link follows verifying Maryland info.
[img]/images/graemlins/frown.gif[/img]
http://www.sportsbookreview.com/Articles/11.aspx

[ottsville]

[ QUOTE ]
Everyone shouldn't be so sure Neteller will stand up if the U.S. gov't tells them they are in violation of this legislation. Neteller currently does not serve customers in Maryland because the state told them they were aiding and abetting a felony. If they caved to a state gov't I don't think they will stand up to the federal government for long. Link follows verifying Maryland info.
[img]/images/graemlins/frown.gif[/img]
http://www.sportsbookreview.com/Articles/11.aspx

[/ QUOTE ]

IIRC, the reason MD residents can not use Neteller is because MD banking law requires a bank to have a physical office within the state.

Also, this article has at least one BLATANT error....

[ QUOTE ]
Many people try to soothe my worrying by telling me that the company is located in Canada

[/ QUOTE ]

The company is located on the Isle of Man, a self-governing crown dependency. With an error of that scale, I would tend to discount ANY of the info in the article.

[Wake up CALL]

Neteller, Inc is incorporated in Alberta, Canada so I'm not sure the article is completely incorrect.

Interesting excerpt from the Neteller T&C's:

15.3 We assume that prior to opening your Account, you have determined that opening and maintaining your Account does not violate any law or regulations in your country of residence and jurisdiction. You warrant that you are not violating any laws or regulations by your use of the NETELLER Service and you agree to indemnify NETELLER, its affiliates, subsidiaries, agents and subcontractors, from and against any and all liability that might arise from your use of the NETELLER Service in violation of any law or regulation.

[ottsville]

I can't seem to find out where they are incorporated by looking at their site. However, their front page has an Isle of Man address. I saw no reference to Canada in the brief look I gave to their site.

As for the T&C change, there was a thread about that here in the last few days.

[El Diablo]

All,

Neteller moved from Canada to Isle of Man after they went public in 2004.

[llayner]

most banks internally monitor tranactions between 7 and 10k becuase smurfing is such a problem.

pay your taxes.

[spresso81]

I plan on paying my taxes this year, as this is the first for my major online sucess so I was wondering what percentage do you normally pay - 20% or more?

Also, how do you prove to the IRS that you entered online tournaments - etc... to get the offset?

Thanks