Cash gifts from foreign country

[LdiJ]

Missing the point. Entirely. What if on the day in question the converted value of the foreign cash was $10,001?

Oh and BTW, I once served on a Federal jury in a criminal trial for someone accused of smuggling about $11k of cash in. Yeah that question was raised in the jury room during deliberations.

The OP said that the cash was converted to US dollars in the Phillipines. See post number 8

 

[kennedy9]

But it's not a big deal so long as the IRS is convinced it's a gift. It just takes some of your time to respond to the IRS.

In your opinion, once the IRS comes after me, whether IRS will be satisfied with the evidences (affidavits) I am going to get from my parents in Philippines and cousin in the US, and submit to IRS and explain? In your opinion, any thing else I need to do to convince the IRS.

 

[LdiJ]

In your opinion, once the IRS comes after me, whether IRS will be satisfied with the evidences (affidavits) I am going to get from my parents in Philippines and cousin in the US, and submit to IRS and explain? In your opinion, any thing else I need to do to convince the IRS.

First, the IRS will not necessarily come after you. They may, they may not. Second, the IRS will take into consideration cultural issues as well as overall facts of the matter. Basically if the IRS believes that the money was gifts, and believes that you had no nefarious reason for keeping it in cash, then that will be the end of the matter.

You are over worrying the issue at this point. Deposit the money into the bank, buy your house, and move on with life. Deal with the IRS when and if you need to do so. However, one thing I can tell you is the fact that you will use the money to buy a house is a bit of a point in your favor. There is little to nothing nefarious about buying a modest house.

 

[kennedy9]

Thank you so much!

 

[adjusterjack]

Missing the point. Entirely. What if on the day in question the converted value of the foreign cash was $10,001?

The article I posted earlier addressed that issue, so I did not miss your point at all. If the converted value had been $10,001 there would have been big trouble if it was undeclared.

But the OP wrote that the amounts leaving the Philippines were US dollars. Did you miss that point?

OP - is the issue on the Philippines side? While it is legal to bring the $$ into the US, it looks like it is not legal to take that much currency out of the Philippines.

Until 2016 it was legal to take a maximum of 10,000 Php (Philippine pesos) out of the Philippines without declaring it. In 2016 that limit was changed to 50,000 Php.

How Much Money Can You Take into or Out of the Philippines – Philippines Information (in-philippines.com)

Here's a shock. 10,000 Php today is $189.24.

50,000 Php is $946.26.

Assuming the rate of exchange was relatively close the last ten years, OP and his cousin likely would have been arrested if caught smuggling the equivalent of about 500,000 Php our of the Philippines.

So, yeah, now I agree it's a customs issue but only a Philippines customs issue.

Now I understand why OP is worried about exposing the $70,000 to government scrutiny. I wonder if the Philippines authorities could charge him and extradite him.

Kennedy9, what method was used to smuggle the money out of the Philippines? How did you hide it? Just curious.

 

[LdiJ]

The article I posted earlier addressed that issue, so I did not miss your point at all. If the converted value had been $10,001 there would have been big trouble if it was undeclared.

But the OP wrote that the amounts leaving the Philippines were US dollars. Did you miss that point?



Until 2016 it was legal to take a maximum of 10,000 Php (Philippine pesos) out of the Philippines without declaring it. In 2016 that limit was changed to 50,000 Php.

How Much Money Can You Take into or Out of the Philippines – Philippines Information (in-philippines.com)

Here's a shock. 10,000 Php today is $189.24.

50,000 Php is $946.26.

Assuming the rate of exchange was relatively close the last ten years, OP and his cousin likely would have been arrested if caught smuggling the equivalent of about 500,000 Php our of the Philippines.

So, yeah, now I agree it's a customs issue but only a Philippines customs issue.

Now I understand why OP is worried about exposing the $70,000 to government scrutiny. I wonder if the Philippines authorities could charge him and extradite him.

Kennedy9, what method was used to smuggle the money out of the Philippines? How did you hide it? Just curious.

The OP should not answer that question in a public forum like this one.

 

[adjusterjack]

The OP should not answer that question in a public forum like this one.

Of course not. I didn't expect him to.

 

[davew9128]

The article I posted earlier addressed that issue, so I did not miss your point at all. If the converted value had been $10,001 there would have been big trouble if it was undeclared.

But the OP wrote that the amounts leaving the Philippines were US dollars. Did you miss that point?

Structuring is a crime. Did you miss that? Doesn't matter what the value was if the intent is to move amounts less than $10k to avoid the reporting requirements. Like I said in my first post, this is a US customs issue. A real one.

 

[Zigner]

Structuring is a crime. Did you miss that? Doesn't matter what the value was if the intent is to move amounts less than $10k to avoid the reporting requirements. Like I said in my first post, this is a US customs issue. A real one.

I not so sure that it's structuring. 5 trips over 10 years...

 

[davew9128]

I not so sure that it's structuring. 5 trips over 10 years...

With each time deliberating making sure to not exceed $10k? What an amazing coincidence.

 

[Zigner]

With each time deliberating making sure to not exceed $10k? What an amazing coincidence.

There must be intent to avoid required reporting.

 

[adjusterjack]

I think intent could be prima facie considering that the amount (in US dollars) was far, far above the amount allowable to be taken out of the Philippines.

 

[Zigner]

I think intent could be prima facie considering that the amount (in US dollars) was far, far above the amount allowable to be taken out of the Philippines.

It's intent relating to required reports in the US, not intent based on laws in the originating country.

 

[Taxing Matters]

I think intent could be prima facie considering that the amount (in US dollars) was far, far above the amount allowable to be taken out of the Philippines.

No. The Treasury and IRS aren't concerned about the person's compliance with Philippine law here. They care about compliance with the US law, in this case reporting of currency (cash and cash equivalents) that a person brings into the United States. Something other than violation of foreign law is needed for a prima facie intent to violate the US law. That's not to say that the violation of foreign law is necessarily totally irrelevant, just that by itself it's not going to make that case.

 

[kennedy9]

In conclusion, bringing notarized letters from my parents confirming the gifts and produce those to IRS if I am investigated, will it be enough (I am sorry for asking again, I am bit nervous)?