Do I have to pay tax(es) on "money transfer"?

Asked 12 months ago - Silver Spring, MD

Does IRS consider "money transfer" as a source of taxable income? Especially if the money was from a foreign person who sent to a U.S citizen with the purpose of "investment" or to "open business" through an international bank such as Citibank or HSBC.

Attorney answers (3)

  1. Oscar Javier Ornelas

    Pro

    Contributor Level 12

    2

    Lawyers agree

    Answered . No. Unlike other countries, the US does not tax bank deposits or money transfers. Note that certain international transfers of currency may be subject to financial reporting (but not taxes). Specifically, the transfer of $10,000 or more in cash (regardless of currency), checks and certain other instruments must be reported to the US Treasury or declared to US Customs if you are carrying them on your person while crossing into or out of the US. These rules do not apply to wire transfers between banks or the delivery of checks or currency through common carriers (e.g. UPS, FedEx) or the US postal system.

    Any comments posted on this site are for your general information and are not a substitute for professional legal representation. Please consult an attorney to adequately address your legal issue(s).

    Oscar Javier Ornelas
    915-600-7286
    oscar@ojotax.com

    Anything contained in this response is for informational purposes only and neither the author nor The Ornelas Firm... more
  2. Luca Cristiano Maria Melchionna

    Contributor Level 15

    1

    Lawyer agrees

    Answered . No. Best.

    This reply is offered for educational purpose only. You should seek the advice of an attorney. The response given... more
  3. Thomas Gordon Rice

    Contributor Level 3

    1

    Lawyer agrees

    Answered . No.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

29,038 answers this week

2,987 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

29,038 answers this week

2,987 attorneys answering