re: Say you didn't want cash wires to be known by the gov....

My business has been paid many times by foreign entities via a bank wire. I've always just assumed my bank is required to report the foreign-originated wires to the IRS or to Homeland Security and paid the taxes on the money. No big deal.

If you like your Bar license, you should let someone else counsel your friend on how to engage in fraud.

Keeping the funds overseas is great until you get caught. The Service has been cracking down on overseas accounts and people who failed to file FBARs.

I agree with one of the other posters that the company paying the money will want to deduct the payment so it will be reported to someone, maybe just not the US. Your friend could be subject to tax on the payment in the country where the services are performed.

While cash transactions of under $10,000 do not have to be reported, financial institutions are requitred to track and report suspicious transactions. You can look those up for yourself.

Keeping the money in a foreign bank still must be reported. There is a queation on Schedule B of the tax return asking if the taxpayer has a foreign bank account. Since tax returns are signed under penalty of perjury dishonesty has risks.

Advise your client to report the money as income. Tell him to take a trip to a country where the company he is doing consulting for has an office, visit that office and deduct the trip as a business expense.

Checks in the mail made to cash is risking loss of money. And cashing them or depositing them would probably be one of those suspicious transactions.

Why can't he get a credit card in the country he has the account, and charge stuff on it anywhere in the world, and pay for the credit card out of that account?
No money is wired anywhere, and no checks are needed. This could all be done on the internet, I think.
If the money in the account is in a different denomination than the country he uses the credit card, then there will be a currency conversion charge. He'd need to know what that costs.

I do not know the legality of any of this since I am not a lawyer or an accountant.
I have read that if a US citizen has an foreign account that it must be "declared" if it has over $10,000 in it. Maybe someone on here knows this.

quote:

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Tiger Attorney

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= Money Laundering

Yep same dude. Wonder if these are "clients" at all....

sweet. when i decide to risk getting pounded in my arse for 10 years for money laundering and tax fraud, the first place i am going to come to make sure my i's are crossed and t's dotted is an lsu football board.