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.
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
Anything contained in this response is for informational purposes only and neither the author nor The Ornelas Firm PLLC ("Firm") makes any representations as to the accuracy or completeness of anything contained in this response. Nothing herein shall be interpreted as legal advice from the author or the Firm, or as creating an attorney-client relationship between the solicitor and the author or the Firm. Neither the author nor the Firm will be liable for any losses, injuries, or damages from the display or use of this information. You should consult an attorney whenever confronted with a serious legal issue. The Ornelas Firm PLLC (www.ojotax.com) may be contacted at 888-764-5822 or firstname.lastname@example.org.
International Law Attorney
This reply is offered for educational purpose only. You should seek the advice of an attorney. The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than an educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the undisclosed individual asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of New York. Responses are based solely on New York Law unless stated otherwise. Pursuant to Internal Revenue Service guidance, be advised that any federal tax advice contained in this written or electronic communication is not intended or written to be used and it cannot be used by any person or entity for the purpose of (i) avoiding any tax penalties that may be imposed by the Internal Revenue Service or any other U.S. Federal taxing authority or agency or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.