Is advertising money from offshore gambling website money laundering?

Asked over 1 year ago - Orlando, FL

I lived in Costa Rica for a few years , traveling in and out of the country . I was not an official resident . While there , I advertised for on line gambling websites . I was paid a commission and reported my income to the IRS . Last year I was very successful and made more than $ 135 , 000 on commission . The company sent money to a local Costa Rican bank . I want to declare this money to the IRS as earned income , however I fear because it was a large transaction from an on line gambling company that it is money laundering .

Attorney answers (2)

  1. Clayton Harold Walker Jr.

    Pro

    Contributor Level 13

    Answered . Money laundering is a focus of the FBI and Attorney General's office because of its role in allegedly supporting terrorism. More money laundering charges are being levied by the federal government, they are devoting more resources toward getting quick convictions. If you are facing allegations of money laundering, it is essential to contact an experienced criminal defense lawyer as soon as possible.

    Few cases are more complex and challenging than those involving international money laundering charges. The claims may arise under:
    Alleged Patriot Act violations
    Illegal wire transfers
    Financial transactions involving proceeds of unlawful activity
    Other illegal transactions
    Internal Revenue Code


    Criminal Investigation (CI) enforces the money laundering statutes relative to legal source income tax crimes (i.e., abusive trusts, offshore tax evasion schemes and corporate evasion schemes); large scale narcotics crimes (through the Organized Crime and Drug Enforcement Task Force (OCDETF) program); and non-narcotics illegal income tax crimes (i.e., illegal gambling and bankruptcy fraud). Criminal Investigation is also responsible for enforcing the BSA statutes under Title 31. Bank Secrecy Act information includes Currency Transaction Reports (CTR), and Suspicious Activity Reports (SAR), Reports of Cash Payments Over $10,000 Received in a Trade or Business (Form 8300), Reports of Foreign Bank and Financial Accounts (FBAR), Registration of Money Services Business (RMSB) and Report of International Transportation of Currency and Monetary Instrument (CMIR). The Internal Revenue Code (IRC) in Title 26 also contains reporting requirements on a Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Money laundering activity may violate 18 USC §1956, 18 USC §1957, 18 USC §1960, and provisions of Title 31, and 26 USC §6050I of the United States Code (USC). The folloing are only those money laundering and currency violations under the jurisdiction of IRS, CI:
    Money Laundering - Title 18 Violations and lesser included offenses
    Money Laundering/Currency Crimes - Title 31 Violations
    Money Laundering - Form 8300 Violations
    Definitions and Terms of Legal Applications
    Forfeitures in Money Laundering Investigations

    I think its clear that you are inquiring about a pretty complex area of law and wanting to get piece of mind from a very short factual statement on a public internet site. What you need is some time with experienced tax counsel experienced in criminal defense.

    If you find an answer helpful please mark it as such or as the Best Answer. You have asked us to state an opinion... more
  2. Daniel Mark Press

    Pro

    Contributor Level 14

    Answered . The US DOJ has made such allegations, but just doing advertising work for an internet gaming company has never been found to be money laundering. What would be clearly illegal would be to not report the income on your tax return. You don't need to state in detail what your work involves or who your employer or client is, and the IRS is generally prohibited from sharing that info. Remember, tax fraud is what brought down Al Capone.

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