Question for the Bankers here... - PeachParts Mercedes-Benz Forum

benhogan · #1 03-25-2010, 08:05 AM

My wife owns (through an inheritance) some land in Ireland. She just sold it.

The money will be wired over to her bank here (stateside). The total amount will be around USD $25,000 in increments of $5000 over the next 2 weeks.

Question-Does this trigger any sort of audit or red flags? The transaction is perfectly legit but we don't need the hassle of an inquiry.

Would it help to break it up into 2 different banks?

benhogan · #2 03-25-2010, 08:06 AM

Oh, and she is a US citizen. If that is at all relevant.

Matt L · #3 03-25-2010, 08:33 AM

It might look like structuring. Ask the branch manager at your bank, or even better, your attorney.

AdvisorGuy · #4 03-25-2010, 10:19 AM

While a legit transaction, make sure your ducks are all in a row. It WILL raise some flags but not necessarily with the IRS... While "transactions over $10,000 are required to be reported", don't think for a minute that transactions of lesser mounts are not "looked at" nowadays.. A friend went through a similar thing. Family home outside the US was sold, money was wired here. All worked out but he was "looked at."

#5 03-25-2010, 10:39 AM

Any way to park the money offshore for a while?

300SD81 · #6 03-25-2010, 10:51 AM

Fly out and bring it back in cash

What you spend in plane tickets, you save in taxes.

note: just a joke.. no idea if it'll actually work

C Sean Watts · #7 03-25-2010, 11:04 AM

Quote:

Originally Posted by benhogan

My wife owns (through an inheritance) some land in Ireland. She just sold it.

The money will be wired over to her bank here (stateside). The total amount will be around USD $25,000 in increments of $5000 over the next 2 weeks.

Question-Does this trigger any sort of audit or red flags? The transaction is perfectly legit but we don't need the hassle of an inquiry.

Would it help to break it up into 2 different banks?

If you are coming to Raleigh anytime soon, I'll tell you who to talk to (to whom to talk?) I asked my wife - she's a credit union manager.

Fed law=Any wires over $3000.00 in US funds (or cash $10,000.00) automatically trigger a report. ALSO anything in a pattern IE:5 x $5000, will be looked at with MORE suspicion! All that will really happen is the IRS will be notified and you'll need to declare it in your taxes. Have the sending bank report the 'nature of' the transfer in the memo line and as long as everything is above boards all you will be liable for is taxes. MOST reports are automatic and the only people who even know about them are in the banking system and not the account holders.

Unless it costs less to send it in increments of $5K, it would be better to send it all at once. As far as 'off shore' for $25K it'll cost you more than it'll save you, if it was $250,000 - different story.

compress ignite · #8 03-25-2010, 11:11 AM

While I applaud the suggestion of Tax Reduction Enactment...
'Get caught with ANY portion of 14,761.68 Irish Pounds AND
Some "Security Expert" with the TSA looking up your nether regions with a Colour Camera
looking for whatever else you may have attempted to smuggle in will be
the least of your worries...

Customs,DEA,BATF,FBI,Agriculture and last but not least Homeland Security all have their
own Cameras and will want to use THEIRS to take "Better Pictures".

'Buying Guns for the IRA?
(OH! Here's the SCARY one... Illegal Funds Transfer,for some Swiss Bank the Feds haven't caught, YET.)
Who knows WHAT Reason/Area/Explanation the authorities in the U.S. need for a "Photo OP" THAT DAY !?!
Don't let Pictures of you + your loved ones (AND your Colons) be on Fox News
along with some grinning functionary from BLM who claims you were going to
buy federal land in Mendocino County to grow Ganja on !

WVOtoGO · #9 03-25-2010, 11:19 AM

Quote:

Originally Posted by benhogan

The transaction is perfectly legit but we don't need the hassle of an inquiry.

You’ve pretty much covered it all right there.

The more you try to do with the transaction and transfer, the more “attention” it will get. So, just stick with how you’re going.

There is no “hassle of an inquiry” if it’s a legit transaction. Legit means there is nothing to hide. Remember that.

And, there is nothing wrong with contacting the IRS (If that’s who you’re worried about.) and asking them what the best way of processing the transaction and transfer is. You don’t have to tell them who you are. Just explain the situation and ask your questions. That way, if/when they ask their questions, you’ll have the answers they want to hear.
Look at it this way: It’s like getting a copy of the test answers from the teacher before you take the test.
As AdvisorGuy stated: Get your ducks in a row. And who better to help you get them that way, then the guys who will be checking that they are.

C Sean Watts · #10 03-25-2010, 11:35 AM

Quote:

Originally Posted by WVOtoGO

And, there is nothing wrong with contacting the IRS (If that’s who you’re worried about.) and asking them what the best way of processing the transaction and transfer is.

GOOD GOD, no. If you ask two IRS agents, you will get THREE contradicting answers. The bankers know what to do, they see it every day.

{not an ad homenim attack on WVO, definitely a de facto attack on the competence of the average Eternal Revenue Service 'agent'}

buffa98 · #11 03-25-2010, 11:43 AM

Check with an accountant as well. If it is a documented inheritance less than a certainn amount(for the life of me I cant remember) 250K comes to mind then it is not reportable as income for tax purposes.
But if she was an owner of the prop then capital gains on foriegn investments comes to mind,

WVOtoGO · #12 03-25-2010, 12:28 PM

Quote:

Originally Posted by C Sean Watts

GOOD GOD, no. If you ask two IRS agents, you will get THREE contradicting answers. The bankers know what to do, they see it every day.

{not an ad homenim attack on WVO, definitely a de facto attack on the competence of the average Eternal Revenue Service 'agent'}

Well... I must admit that there have been times when this has proven true.

Here however, I feel they would more than likely all give him the same answer as it’s a pretty cut and dry set of procedures.
(Been here. Done this.)

There have been times however, when I’ve requested information on issues that they didn’t seem too sure on. (Kindospooky)
That’s when you move up the ranks and ask again.

There’s nothing wrong with going to www.irs.gov and printing the procedures (and/or answers) off from there as well. I’ve covered my butt with that blanket numerous times when they start asking questions.

Skid Row Joe · #13 03-25-2010, 02:49 PM

Quote:

Originally Posted by benhogan

My wife owns (through an inheritance) some land in Ireland. She just sold it.

The money will be wired over to her bank here (stateside). The total amount will be around USD $25,000 in increments of $5000 over the next 2 weeks.

Question-Does this trigger any sort of audit or red flags? The transaction is perfectly legit but we don't need the hassle of an inquiry.

Would it help to break it up into 2 different banks?

I doubt it. I've routinely banked checks totalling anywhere from $10,000.00 to $120,000.00 dollars per single deposit for years now, and I've not heard a peep out of any entity. Cash? Now that's a different story.

Skid Row Joe · #14 03-25-2010, 02:53 PM

Quote:

Originally Posted by 300SD81

Fly out and bring it back in cash

What you spend in plane tickets, you save in taxes.

I would not think it's taxable in any way.

WVOtoGO · #15 03-25-2010, 02:59 PM

Quote:

Originally Posted by Skid Row Joe

I doubt it. I've routinely banked checks totalling anywhere from $10,000.00 to $120,000.00 dollars per single deposit for years now, and I've not heard a peep out of any entity. Cash? Now that's a different story.

I agree.
I doubt he’ll hear from anyone.

As for hauling cash around... “Different story” is right.
I nearly choked when I read post #6.

I can’t count the number of times I’ve hauled clients around and back from overseas and covered my ass with: “Hey, I’m just the pilot here. Please leave me out of it.” And thanked God they did.

Things can get ugly quick when big chunks of cash are found hopping around the globe.