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Can you provide me with information on this reporting to the irs and the level of questioning associated with it? I'm not sure if you are aware but the reporting of transactions of 10k or greater through a SARS report actually goes to the irs not Fincen not the irs. There also isn't some heavy questioning that goes along with it unless there is a large amount of this activity.
I know what the fedex policy is
I don't have that information, but I do have personal experience.
Have you ever been stopped at the border and during a secondary screening they find you're carrying a few thousands dollars?
They do question you. they do ask where, why, when and how. In the end they can't do a darn thing about it because it's under 10k, but they still try to intimidate you.
And if you think the IRS doesn't have a hand in this then I don't know what to tell you. I know who it gets reported to, I read the signs while waiting in line for customs/immigration and I do read my customs form.
I know the FedEx policy too, but it doesn't mean they don't/won't do it.
I don't have that information, but I do have personal experience.
Have you ever been stopped at the border and during a secondary screening they find you're carrying a few thousands dollars?
They do question you. they do ask where, why, when and how. In the end they can't do a darn thing about it because it's under 10k, but they still try to intimidate you.
And if you think the IRS doesn't have a hand in this then I don't know what to tell you. I know who it gets reported to, I read the signs while waiting in line for customs/immigration and I do read my customs form.
I know the FedEx policy too, but it doesn't mean they don't/won't do it.
You don't have the information because it's not reported to the irs. The IRS isn't going to ask you questions that's for sure. I've done secondary screenings with cbp with large amount of currency and it's pretty standard couple of minutes. Their line of questioning is Liken to that of a police officer asking questions on a road side stop to see how you respond. They try to intimidate you? Lol uh okay seems like someone is dramatic. I've also carried large amounts of currency, declared and had not secondary screening
Just because a cash package ships through fedex doesn't mean they are aware of the contents and you'd better hope it never gets lost
My wife uses Western Union to send to Colombia from the US. It is a flat $8 fee, at least up to what she'll send, so it will cost more as a percentage to send a small amount ( say 50 to 100 bucks) then to send a bit more (like 200 bucks).
When I was living in Costa Rica I just used my US bank card to receive cash when needed before I got a local account..
When I bought property in Costa Rica I had my bank do a wire transfer.
When I sold my property in CR I opened a bank account there and used the ATM for cash withdrawals.
When my parents needed to borrow money from me to put down on a new house, I had my CR bank wire several different 9000 transactions to my parents account in the US.
As I was giving up all ties to Costa Rica I would fly with 9500 cash a few times and then deposit into my US account.
Yes, customs did see cash upon looking and asked a few questions. No problem. It was bound to happen as when I travel with cash I separate it a bit so I don't have it all in one spot.
Paypal, moneygram, western union, etc.: fees + they ********* on the exchange rate: big time.
Wire transfer: same as above, but they generally ********* less, at least on the exchange rate.
Cash: no problems, except the unpleasant feeling of having a large sum of money on your person might give you.
There are multiple factors in determining the best way: convenience, cost, size of transactions, frequency of transactions, which way the money is moving.
I've mostly had to do US->somewhere else transfer. For small infrequent transactions: ATM withdrawals with my TD bank debit card: all fees are reimbursed and the exchange rate is a fair one set by VISA. There are multiple banks who offer similar products.
Big infrequent transactions: transferwise. 1% fee and the exchange rate is a fair market rate. Very easy to do with sums under 3k, as those can be done completely online with an ACH transfer. Bigger sums would require a domestic wire transfer which is a bit of a pain.
I would use transferwise to send money to the US as well.
I have used Paypal to send small amounts of money internationally. They give you decent exchange rates (found the mark up is usually 1-2%) and charge you a 0.5% (for many countries) fee for international transfers. Its by far the easiest way to send money, but the fees can be substancial if you're sending a considerable amount.
Who really wants (or needs) to carry more than $10K for any legitimate purpose?
We just returned from another month-long trip around the Mediterranean. Before/After hotels were pre-booked and prepaid, as was the cruise ship and other amenities. While almost everyone in Europe accepts Master Card or Visa (and ATM's are everywhere), we decided to carry about $2K in euros and US $'s to cover excursions and smaller restaurants, etc. - Ultimately, we spent mostly euros, since many places no longer accepted US $'s.
Cash advances for smaller amounts are expensive (rate of exchange, CC fees and International exchange fees can amount to $15+ per transaction); ... something we learned to avoid on previous trips).
Clarification: not for illegitimate purpose, but looking for the way to pay the least fees. If you send a big sum, say, by paypal, the 3.9% can be pretty sizable.
Many legitimate reasons to want to move money across country borders: relocating, purchasing real estate, throwing a wedding, helping family living abroad, etc.
Agreed that in this day and age going on vacation with $10k in cash is a little ridiculous. Also paying exorbitant foreign transaction fees on purchases and accessing your money at an ATM is something that can be completely avoided by US residents today.
Is the money received in the U.S. from overseas via bank wire transfer (or similar) subject to income tax?
Is it income?
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