Cash gifts from foreign country

[kennedy9]

What is the name of your state? South Carolina

This forum is a wonderful resource and hope to get an advice for my situation.

I live in South Carolina, migrated from Philippines. Visited Philippines 5 times during last 10 years. Each time, my parents gave me US$10,000 cash gift. Another two times, my parents sent US$9,500 as cash gift to me, via my cousin, when he was returning from Philippines to the US. Now I need this money to buy some property here. Do I face any issue from tax people or any other government employees if I put this cash which total almost US$70,000 in my bank account, and if so, how to handle this? My passport and visa and my cousin’s passport and visa show the dates of these visits. My cousin can testify about the cash gift he brought for me from my parents. My parents can provide a letter or any kind of affidavit confirming this, from Philippines.

 

[Just Blue]

What is the name of your state? South Carolina

This forum is a wonderful resource and hope to get an advice for my situation.

I live in South Carolina, migrated from Philippines. Visited Philippines 5 times during last 10 years. Each time, my parents gave me US$10,000 cash gift. Another two times, my parents sent US$9,500 as cash gift to me, via my cousin, when he was returning from Philippines to the US. Now I need this money to buy some property here. Do I face any issue from tax people or any other government employees if I put this cash which total almost US$70,000 in my bank account, and if so, how to handle this? My passport and visa and my cousin’s passport and visa show the dates of these visits. My cousin can testify about the cash gift he brought for me from my parents. My parents can provide a letter or any kind of affidavit confirming this, from Philippines.

Did you deposit the cash in a bank account when you received it?
I tagged one of the site vetted Tax Attorneys and hopefully he will be able to assist you.

@Taxing Matters

 

[kennedy9]

I never deposited any of that cash in any bank: I kept that cash as cash only, and stored in my house.

 

[Just Blue]

I never deposited any of that cash in any bank: I kept that cash as cash only, and stored in my house.

Okay...As I said I tagged a site vetted Tax Attorney who may be able to assist you.

 

[LdiJ]

What is the name of your state? South Carolina

This forum is a wonderful resource and hope to get an advice for my situation.

I live in South Carolina, migrated from Philippines. Visited Philippines 5 times during last 10 years. Each time, my parents gave me US$10,000 cash gift. Another two times, my parents sent US$9,500 as cash gift to me, via my cousin, when he was returning from Philippines to the US. Now I need this money to buy some property here. Do I face any issue from tax people or any other government employees if I put this cash which total almost US$70,000 in my bank account, and if so, how to handle this? My passport and visa and my cousin’s passport and visa show the dates of these visits. My cousin can testify about the cash gift he brought for me from my parents. My parents can provide a letter or any kind of affidavit confirming this, from Philippines.

It is not illegal to have cash, even significant cash. However, the banks do report significant cash transactions to the IRS in order to help avoid people committing tax fraud. Whether the IRS will choose to investigate your 70k or not is unknown. I will again emphasize that it is completely unknown whether or not the IRS will choose to investigate your 70k deposit.

The more documentation you have (should the IRS choose to investigate) the better. Since you are required to report to customs significant cash that you bring into the country that documentation would of course be the most useful.

 

[adjusterjack]

I never deposited any of that cash in any bank: I kept that cash as cash only, and stored in my house.

In the future just have your parents send you a check in usd with the word gift on it, make a photocopy or scan it to your computer, then deposit it. Perfectly legal and you won't have any of the anxiety that you have today.

 

[Taxing Matters]

What is the name of your state? South Carolina

Do I face any issue from tax people or any other government employees if I put this cash which total almost US$70,000 in my bank account, and if so, how to handle this?

Are you now a U.S. citizen or lawful permanent resident of the U.S. (i.e. "greencard" holder)? If so, when did you become a citizen/permanent resident? The tax analysis starts with the answers to those questions.

 

[kennedy9]

As per US rules, if I bring more than US$10,000 into US during a single trip, I need to report to US and complete the forms. https://help.cbp.gov/s/article/Article-195?language=en_US However, in no single trip to US, I brought more than US$10,000. My parents gave each of that gifts as cash (in US dollars, after converting Philippines currency, to US dollars, in Philippines itself).



Now I am a US citizen. Also I was a permanent resident of US (has green card) when I brought the first two cash gits (each is US$10,000: more specifically, US$9,900) and I became a US citizen when I brought the remaining 3 cash gifts (each is US$10,000: more specifically, US$9,900). My cousin, who brought the gifts (each is US$9,500) for me from Philippines also got the green card and US citizenship almost at the same time when I got them.

 

[adjusterjack]

That was foolish and unnecessary. It's what criminals do in order to hide money from the US Government.

Now you might find yourself under a microscope.

 

[kennedy9]

I do agree that it might be a foolish thing but unfortunately, now, we cannot turn back time. I am and was in very difficult;t financial difficult situations therefore my parents sold their belongings in Philippines and arranged that money. Still I am living with very low income. Wish to buy a small home to live with that cash (it is my wish of my parents too) by depositing this cash in a bank. Do I face any issue from tax people or any other government employees if I put this cash in my bank account, and if so, how to handle this.

 

[davew9128]

There is no tax reporting issue here. The issue you're raising is a customs issue not a tax one. I would suggest in the future that if your family wishes to give you money, they wire transfer it.

 

[adjusterjack]

Do I face any issue from tax people or any other government employees if I put this cash in my bank account, and if so, how to handle this.

No way to predict.

Just put the money in your bank account. If there's anything to "handle" you handle it when it happens.

Trying to avoid the issue only makes things worse.

When you buy a home the escrow company is going to want a cashier's check or wire transfer from your bank. You'll need to have the money in the bank to do that.

 

[kennedy9]

The issue you're raising is a customs issue not a tax one.

How it is a customs issue , as the amount that is brought each time is below 10,000 threshold which does not need any reporting from my side? Once it is deposited in bank, and IRS comes after me, it will be a tax issue as IRS comes with suspicion that I did not pay tax on that "earned income" although I did not earn but it was gifted.

 

[adjusterjack]

No, Davew9128 was wrong. It's not a customs issue.

See:

The U.S. Customs Cash Limit: Money at the Border | Clearit USA

It's an IRS issue. The bank will report the deposit to the IRS. The IRS may want you to prove that it's not income that's subject to taxation. How you prove that is anybody's guess.

Keep in mind that you will have family members testifying in your behalf. They are biased in your favor and family members tend to be willing to lie for family members so an investigation into your finances could be rigorous and inconvenient. Or not. Could be just a simple matter of getting letters from the people who gave you money.

It's not so much the amounts your brought into the US. Those were perfectly legal. It's depositing $70,000 today that raises suspicions. And don't even think about depositing small amounts over a period of time. The banks look for, and report, that too.

 

[kennedy9]

Now, prior to depositing that cash in bank (or soon after depositing in bank), bringing notarized letter from my parents in Philippines, confirming those gifts they gave me (or sent via my cousin); and notarized letter from my cousin (who lives in the US itself), confirming bringing those gifts for me from my parents; would it be enough? If not enough, what would be helpful? I am willing to do whatever it is necessary to convince IRS that it is a gift money, not my earned income.

As you advised, I will deposit all that cash in one shot in the bank.