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Thread: Money Orders and Cash Transfers

  1. #1
    Member OCWizard's Avatar
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    Default Money Orders and Cash Transfers

    I realize a lot has been written here about money orders, but I came across the item linked below that summarizes the pitfalls of using , discusses money laundering and the various laws requiring reporting to government agencies. Thought some of you might be interested. Just click on the highlighted words above.

    OC

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    Banned Melonie's Avatar
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    Default Re: Money Orders and Cash Transfers

    ^^^ with the bottom line being that money order sellers start keeping transaction records when money order amounts exceed a total of $1000 by a single person in a single day ...

    "A seller of money orders, or stored value (other than a person who never sells such checks or money orders or stored value in an amount greater than $1,000 to any person on any day in one or more transactions)"

    Your link also makes reference to the mandatory federal reporting threshold of $10,000. ANY transaction of $10,000 or more which occurs in ANY state is going to be reported to the IRS. However your link does not reference the fact that many states have set lower mandatory state reporting thresholds (i.e NY is $3000 ... and that state report winds up being shared with the IRS too even though the transaction was below the federal reporting threshold). There is also the 'obligation' that bank tellers etc. generate a Suspicious Activity Report to the IRS if they suspect suspicious/illegal financial activity, regardless of the amount of the transaction.

    Also not mentioned in your link, but mentioned at length in the weekend press, is that any 'offshore money transfers' by US residents to a foreign recipient / bank account are likely to be monitored by the US gov't and shared with the IRS, regardless of the amount of the transaction.

  3. #3
    madmaxine
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    Default Re: Money Orders and Cash Transfers

    One word- Smurfing. Google it. Hee hee.

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    Featured Member lunchbox's Avatar
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    Default Re: Money Orders and Cash Transfers

    Quote Originally Posted by madmaxine
    One word- Smurfing. Google it. Hee hee.
    Oh the memories

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    Banned Melonie's Avatar
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    Default Re: Money Orders and Cash Transfers

    ^^^ smurfing is indeed almost a memory these days ... unless you never engage in a transaction or purchase anything with a value over $3000 ! Sadly, quite a few dancers in my area have been slow to figure that out, leading to a recent rash of tax busts as a result of girls purchasing and registering cars and condos with unreported income, opening bank, investment or retirement accounts etc. funded with unreported income etc. in 2005 ! State law establishing a $1000 per person per day automatic reporting threshold on money orders made matters even worse for the 'smurfs', of course.

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