Multiple Poker Cashouts

[KaciBlakely]

I haven't won any big tournaments but plan to in the upcoming FTOPS. Anyways I asked a friend some information and he is a banker and plays way too much online poker for his own good but hopefully this information is all good for everyone for their winning and current winnings.

1. Is there anything that I should actively do to make sure the bank understands these wires? (talking about wiring money from pokersites to your bank account.

Answer: NO. Don't do anything! There are tens of thousands of wires/day in the US and most of them are $25K+. These incoming wires you will be getting is a normal part of the landscape. What I would do is make sure that your target account is non-interest bearing as you probably don't want 1099's.

Even if you report your poker winnings 100%, these 1099's will be an audit trigger. Have your account converted to interest free checking if it is currently a money market account.

If the bank were to contact you about the source of your wire, tell them that it is from an "ongoing business venture". They can't ask what the venture is. If they do, get a different bank.

There is a misconception out there about bank's responsibility for reporting.

A. If I bring $10,000 cash to deposit, there is a CTR filled out.

b. If I have a wire sent to me for $1,000,000,000, there is NOTHING the bank has to report. Reporting measures are for cash only. If someone tells you different, they are ignorant to banking. If you had $1,000,000,000 wired to you, the ONLY call you will get is from a private wealth management banker trying to sell you financial instruments for the $1b.

2. Is there a correct procedure or amount that I should pay heed to (how often and how large should I make my transfers?)

Answer: If it were me, I would take everything I needed/wanted in a single wire. No reason at all to break the wires up as it will only cost you more in fees. Remember that wires are not reported, therefore there is no limit amount to worry about.

3. Am I entirely overreacting? Will the bank be fine with these wires if I haven't ever really had this sort of income before?

Answer: Yes on overreacting, yes on the bank being fine. Peoples' income levels change all the time. I had customers that opened accounts with $50 and 5 years later there is $500k in there. Banks love it, and are not looking to put anyone through an inquisition.

As a caveat, the way the sites are doing it now is going to be impossible for the feds to do anything about. There is no US bank account involved in paying you (it comes direct internationally), so the feds can't touch it or you. They would have to go to the WTO and ask for cooperation in seizing these overseas accounts and the chance of the WTO doing that are EXACTLY 0.

I hope this help cleared up any confusion anyone has about transferring money back and forth between poker accounts and bank accounts.

[sloeddie]

nothing left to do now except win that 1,000,000 and have it deposited.. thanks for the info....

[0maxpower0]

Wow Kaci, lotta good information in there. Im always a little paranoid about withdrawing from some sites, and i feel that it affects my play because in the back of my mind, i feel like i wouldnt get the money anyway. This definately helps settle the pit in my stomach. TY!!. Plz dont hesitate to post more of this banking and legal stuff, i always need a lil reassurance.

[KaciBlakely]

No problem. I'm passing it along because this was something I know many people were worried about and now I am glad to know the correct answers.

[eejit101]

Or, just posting it for chips

It is a good copy tho.