How do you guys cash your checks/tax time

[krackman]

I am married and have a joint checking account with my wife I also have one in my name only I have deposited/cashed checks ranging from 3-8 dimes at least a dozen times this year in my own account but my wife ( who actually is a lawyer )says I should not request these cashouts(as often) because when the bank gets audited then we have a great chance of being audited also.I have a F/T job and do this strickly p/t (but the last 6 months it seems almost f/t)so I was thinking about something like an offshore bank account. Am I small peanuts and should not worry about this? Thanks!
Krackman

[STING]

I don't think you are small peanuts. I would review the thread regarding offshore banking in Antigua. Something to seriously consider. When there's a will there's a way and the IRS will always find a way...to screw you over.

[IBTom]

One way is to cash your checks at a check cashing business. The most you would have to pay would be 1%.You should be able to work a deal since many of these places are mom and pops and welcome large cashiers checks the most. Then just put the loot in a safety deposit box.

[ShiftySheik]

If the checks aren't too big you could cash them at your bank. There's still a paper trail but at least the cashed checks will not appear on your bank statement.

[Cons]

I think that If I was in this position (living in the US), I think I'd open an account offshore in a country that won't disclose any information about you or your accounts unless you were an international war criminal or major drug dealer. I would find a bank that would be tight with information and do all my sportsbook dealings through them.

[BigMoney]

krackman, as long as you (1) keep good records of wins/losses/expenses, (2) check the IRS box about foreign financial accounts, and (3) file/pay taxes on any net gain; then I don't think you have anything to worry about, even if you are audited.

[Cons]

Maybe it's just me, but I never thought anyone would ever inform the IRS of any winnings. But then again it might just be my own view, because in England you don't have to pay tax on winning, and you actually don't even have to report them.

Since betting is technically illegal, or might soon be, then isn't it a bad idea to even mention this to the IRS?

[BigMoney]

Cons, I think in England the tax man gets his cut in the form of a betting tax. Elsewhere, both the sportsbook and successful bettors are responsible for tax on net winnings.

If you are a serious bettor, then you are silly not to report gains, especially if you are betting offshore. For now the betting seems to be legal in most states. The only thing that would be illegal is to make profits and not pay tax on them. And it seems that winnings could be tracked by the IRS if they somehow suspected that they needed to check into it for whatever reason.

[AussieVamp2]

No tax on gambling in Australia, sorry BM, not on the punter in the form of income tax, or the huge sportsbetting tax in England.... just the smaller ones the companies are levied, which are hence passed on in the form of 1.85 odds by the state TABS etc. - so Centrebet has no excuse, as they don't have that tax rate, but a Vegas-similar one

[ShiftySheik]

I'd have to agree with Cons, no sense in opening up a can of worms. If you do report your winnings there is a greater chance of being audited. Who needs that.

[Aus12]

I don't think reporting your winnigs will get you aduited, since internet sportsbetting is still legal in most states they will want you to report it. If you don't report it and you have been depositing checks into your bank account... especially 8-12 dimes on what sounds to be a regular basis... the gov't will have very easy access to this information. I light of this if you report and get audited you will have a very good explaination for these deposits and they'll move on to their next questions. If you don't and are audited you will have no explaination except that you did not report them. That's evasion and they'll make you pay your fines and penlaties (with a ridiculus amount of intrest on top of that).

So in a short version... since you're not doing anything that is considered illegal, yet, you should not be flagged for an audit.

Also in terms of having an offshore bank you do have to report it to the IRS (at least they want you to) and if you don't they can try to get you for evasion.

[Cons]

BigMoney, there is tax on local sportsbooks in England.

But just like everyone else out there, I bet offshore. So there's no tax on the bets I make, and sure as hell there is no tax on my winnings either...

To be honest, I'm even opening up an offshore company in one of the tax-havens and by doing operations through this company I will be able to evade tax, legally that it.

[BigMoney]

Whether to report winnings is certainly an individual choice, but it is important that we all understand the rules/laws and the various penalties/consequences. In the U.S., I'd say it is pretty much insane to (a) deposit offshore sportsbook checks into your bank accounts, (b) have a net gain, and (c) not report it.

Most everyone would prefer to avoid paying tax. I even admit to buying one of these "offshore tax havens" books just to see what the legal options were. Everything in that book indicated that opening an offshore corporation through which to make wagers would not excuse me from being liable for U.S. income tax on its gains.