Lots of bank accounts, is it ok?

red007 · Jul 7, 2003

Here is my problem. Not really a problem but I've been winning a lot this year w/ offshore books. I've got 3 checking accounts w/ 3 different banks in town. Usually I'll cash 1 check per month per bank from an offshore book. Keep it small like 2k per check.
I'm thinking of opening up 3 more accounts w/ 3 other banks. Giving me a total of 6 checking accounts. Is this ok to do meaning will the IRS or other gov agencies raise eyebrows when they see some guy has checking accounts w/ 6 different banks? That way I can cash out
6 * 2000= 12k per month.

TheGeneral+ · Jul 7, 2003

Good question. I wonder the same often. Funneling monies is tricky & one must be careful.

oldmantime · Jul 7, 2003

I would think as long as you are claiming winnings- losses the IRS would not care if you had 50 bank accts.

If something else--than 1 bank acct is one too many-IMO

Journeyman · Jul 7, 2003

It does seem to raise an eye , even if you have 3-4 accts....

PatrickMcIrish · Jul 7, 2003

If you pay what you owe you will have no problems. If you aren't paying what you owe than yes having 6 different accounts might draw attention to yourself. Or if they for another reason took a look at you it might look bad. Just an opinion though, I have no idea how the IRS works.

red007 · Jul 7, 2003

i have 3 now. i think i'll open 2 more.
hopefully it will be ok. i figure each bank will be happy if i keep 5k in a non interest bearing checking account. then they usually will cash your checks no problem if you have 5 dimes in their acct. and only cashing 1 check per month per bank hopefully will keep things on the down low.

buddyboy · Jul 7, 2003

red, find one bank and get to know the people at that bank. It is the people in the branch that will end up vouching for you or turning you in to the feds.

having 7 or 8 bank accounts does nothing for you...(the feds can track them all down) instead of having the chance of one bank turning you in for suspicous activity you now inceased your chances 7 or 8 times.

Imagine what they jury would think when the District Atty tells them that you had 8 bank accounts that you used to hide your money. (sure there is nothing wrong with having 8 bank accounts but the jury will think you are trying to hide something)

good luck

FunkSoulBrother · Jul 7, 2003

My apologies if this has been covered before, but if one is to be a good citizen and report all of his (offshore) winnings and losses, what is the best way to do that?

Do you seriously write them in as Gambling wins/losses, and the IRS doesn't care so long as its all written down? Or will they turn the fact that you gamble offshore over to anyone trying to get you on illegal wagering on a whim? I know "Illegal wagering offshore" is a grey area, but c'mon.

oldmantime · Jul 7, 2003

Yeah -Funk
This is what I've been asking all along --but it concerns the current legislation (if passed).

In Previous articles The Shrink himself has advised folks to claim winnings.

We aren't dealing with a gray area now-BUT!!

TruthEmminates · Jul 7, 2003

If you pay the IRS taxes due on your earned offshore income, 100 accounts would be o.k.

If you are not paying the IRS- You are doing what is defined by the IRS as "money laundering."

Banks records are a very wide open book to the IRS. You have a paper trail that is very easy to trace.

PatrickMcIrish · Jul 7, 2003

Funk - you just pay taxes on them as gambling winnings. It could come from a legal contest in Las Vegas (which is some of what I had to claim), poker winnings, pari-mutuals etc.... You don't have to break it out as off-shore winnings, just pay the taxes on it is all they care about.

A guy like Strut who lives like a million-aire and hasn't worked in 12 years it doesn't take a genius to figure out he is winning somehwere.

FunkSoulBrother · Jul 7, 2003

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Funk - you just pay taxes on them as gambling winnings. It could come from a legal contest in Las Vegas (which is some of what I had to claim), poker winnings, pari-mutuals etc.... You don't have to break it out as off-shore winnings, just pay the taxes on it is all they care about. <HR></BLOCKQUOTE>

I understand this approach is often used by drug dealers and the like.

Would reporting many dimes in gambling winnings increase your chances of an investigation (initially looking for perhaps drugs) which would in the end see you in trouble for gambling offshore?

PatrickMcIrish · Jul 7, 2003

Good question Funk, I really don't know. I will say though I have claimed wins for the last 18 years and never got audited once. Of course I fly under the radar because I don't win big amounts and I pay every cent I owe.

One thing I think you are making too big an issue about is off shore gambling. As far as getting in trouble over it. They aren't after that kind. If they crack down they will try and cut the head of the monster off, not go after us players. They'd have a backlog through the courts of over 800,000 people just in the US alone. If the only thing you are doing is gambling off-shore you have nothing to worry about IMO. If they catch you doing other stuff they may tack that on but not going to chase you down for wagering off-shore.

FunkSoulBrother · Jul 7, 2003

Thanks for the info, Patrick, and I tend to agree with your setiment (That the IRS just wants it money, and aren't particularly concerned with how you get it to them), too.

I'm not particularly worried as I bet very small beans, I just want to try and stay knowledgable in case I ever became a "dime player" in the future.

PatrickMcIrish · Jul 7, 2003

Nothing wrong with that logic sir. Good luck today.

red007 · Jul 7, 2003

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by buddyboy:
red, find one bank and get to know the people at that bank. It is the people in the branch that will end up vouching for you or turning you in to the feds.

having 7 or 8 bank accounts does nothing for you...(the feds can track them all down) instead of having the chance of one bank turning you in for suspicous activity you now inceased your chances 7 or 8 times.

Imagine what they jury would think when the District Atty tells them that you had 8 bank accounts that you used to hide your money. (sure there is nothing wrong with having 8 bank accounts but the jury will think you are trying to hide something)

good luck<HR></BLOCKQUOTE>

thanks for your input. the only problem is if you have one bank account, you can't really be cashing checks for 10k per month. The bank would get suspicious as i doubt anybody really cashes 10k of checks per month. The only advantage of the other accounts is that you are only cashing 1 check per month at the bank for 2k. I would doubt a bank would get suspicious of some customer who has a checking account w/ 5k and that customer comes in once a month to cash a check for 2k.
but who knows.
its a gamble.

GUYS. a question for you all...
what percent of successful offshore gamblers (those who make 50k a year or more) do you think
report it?

FunkSoulBrother · Jul 7, 2003

PS, its nice to see someone answer a question about taxes on the RX for once. Usually when I've seen this issue brought up all the people who post 50 times a day clam up and accuse the newbie of being some sort of IRS agent who trolls message boards day after day looking for gamblers.

good luck to you too.

oldmantime · Jul 7, 2003

If you deposit 3,000. buck into your checking acct via Neteller---I don't think that I would say it was won in Las Vegas!! LOL

ballsofblue · Jul 7, 2003

if your concerned about multiple checking accts you can set up an offshore acct and an ibc. they will give you a check card that you can use anywhere or make atm withdrawls. if your everasked why you have multiple checking accts you can tell them that if the bank goes public you want first dibs on stock offerings, that is if its a private bank.

ballsofblue · Jul 7, 2003

its best to claim all of your winnings

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