Why does Home Depot refund Cash for Debit Card purchases?

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> to get the cash into the financial system so it can be transferred > elsewhere, or at least saved so you don't have piles of currency. > Taxes are a small price to pay for that- that's why some money- > laundering is run through legitimate businesses, which also pay taxes.
I don't think you're going to find any drug dealers happy to give 40 or 50% of his earnings to the IRS. They are already breaking laws that could sent them to jail for 20 year to life. Getting nailed for avoiding income tax isn't going to phase them one bit. And I assure you that the money that is being laundered via legtitimate businesses most taxation somehow, eg by coming up with phoney business losses to offset it.
Happy? Of course not. But if there's no other alternative... anyway sometimes it's easier to catch them for tax evasion than drug dealing, and everybody spending money needs to show some taxable income anyway, if they want to buy nice cars, etc. Otherwise the IRS can ask them to prove a source of the income...
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On 7/19/2011 3:40 PM, snipped-for-privacy@rochester.rr.com wrote:

If he has a business he does because $10k cash is the government mandated reporting threshold :
http://www.irs.gov/businesses/small/article/0,,id 8821,00.html
Of course in his case it wouldn't matter because there would be a trail.
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Exactly. It has nothing to do with taxes being owed on the amount in question just because you received it. It's about the Feds trying to catch people avoiding taxes by doing crash transactions. Think drug money and money laundering. Hence they require it to be reported so there is a trail.
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wrote:

Bull$hit. It's about collecting taxes.
No drug dealer or money launderer with any self-respect at all is going to report all transactions over $10,000 to the IRS, and if he doesn't the IRS is NEVER going to know about it.
These guys are dealing with cash that trickles in in individual $20's, $50's, or $100's from people on the street. It's not like they go to the ATM and pull a briefcase full of cash out of their checking accounts. It's not like they take briefcases full of cash down to the local Chase Manhattan and deposit it. This is totally off the radar, no way for the IRS to pick up on any of it. The money is in closets, mattresses, warehouses, guarded by armed thugs 24/7. Much of it has been "out of circulation" for decades.
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On Jul 20, 10:45 am, snipped-for-privacy@rochester.rr.com wrote:

That sounds suspiciously like what he said...

No, but that means they can't easily deal with legitimate financial institutions since they are the ones who have to file the report. It doesn't stop them, but makes life more difficult, which is about the best the feds can hope for.

Yes, but that is largely because of this requirement. They used to do it all the time when the banks were not specifically required to report it.
If nothing else, it's one more violation to throw at them when (if) they do get caught...
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Yes, exactly. Without the reporting rules, a drug dealer could walk in to any bank with $100K in cash every week and it would be handled as a routine transaction. It's about making it harder to avoid laws, both regarding income and other illegal activities.

Exactly. And money laundering carries some very heavy penalties. Even if you can't prove drug dealing or another crime, you could put them away for a very long time just on the money laundering, conspiracy to commit money laundering, etc. You can even prosecute someone under the RICO statutes if they were a big time money launderer.
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On 7/20/2011 10:45 AM, snipped-for-privacy@rochester.rr.com wrote:

I thought he said that (the collecting taxes part)?

Give it some more thought than that. Lets say you operate a business and you decide to cater to folks who pay with large sums of cash (they might be say a drug dealer). How exactly would you launder the money (lets say you did only say $100k to launder)?

Actually they used to take suitcases of money to the bank just as you described. But since the banks are required to report it that laundering method is gone.
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A laundromat or three (not kidding). Any cash business. An acquaintance had a sandwich truck. His home safe was crammed full of Franklins. The burgers and dogs business was all above board. He bought the soda and cold cuts across the counter at a grocery store. All that income went South.

Vegas.
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On Jul 20, 8:14 pm, " snipped-for-privacy@att.bizzzzzzzzzzzz"

How exactly does one launder money in Vegas? The casinos are subject to the same $10,000 cash reporting as a bank.
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You come in with $10,000 in cash, buy chips, cash them in and claim it's winnings. Or do it with $9000 and ask for a check.
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On 7/20/2011 11:03 PM, Shaun Eli wrote:

Or if the casino is in on it (probably less likely than in the bad old days), buy chips, and play badly. Even if casino has to pay taxes on it, the money now has a legitimate source.
Any business that does lots of small deals for cash is ideal for money laundering. Just inflate the totals slightly, and the money now has a pedigree.
Down south, real estate deals with briefcases full of cash used to be common, and it was considered impolite to ask questions.
--
aem sends...

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aemeijers wrote:

There was one example on "Breaking Bad." The lawyer tried to get the dope maker/dealer to buy a (crappy) beauty salon. The cash from the dope could be deposited as revenue from the hair dresser and disguised as legitimate income.
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what....you want it refunded on your Medicaid card instead?
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Yes, if you take away $10,000+ to the casino they might report it to the IRS. But the point of money-laundering isn't to avoid taxes, it's to get the cash into the financial system so it can be transferred elsewhere, or at least saved so you don't have piles of currency. Taxes are a small price to pay for that- that's why some money- laundering is run through legitimate businesses, which also pay taxes.
Furthermore, gambling income is only taxable to the extent it exceeds gambling losses. So if you launder money through a casino and they report it, you could probably claim a deduction for gambling losses another time (although you might be asked for some evidence).
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There isn't any might about it. Any cash transaction over $10,000 has to be reported to the IRS by law. And with the constant oversight the casinos are under, I'd expect them to be among the last to violate that law. And if you win a substantial amount, they must withold tax.

I don't think you're going to find any drug dealers happy to give 40 or 50% of his earnings to the IRS. They are already breaking laws that could sent them to jail for 20 year to life. Getting nailed for avoiding income tax isn't going to phase them one bit. And I assure you that the money that is being laundered via legtitimate businesses most taxation somehow, eg by coming up with phoney business losses to offset it.

The point to the reporting system is that it's perfectly normal for a person to win $50,000 at a casino. It's not normal for that same person to be winning $50,000 every week, or every month, which is what is required for money laundering to be successful on a large scale. If you just have $50,000 in cash one time, no need to really launder it at all even if it's from an illegal stream.
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On Thu, 21 Jul 2011 08:05:21 -0700 (PDT), " snipped-for-privacy@optonline.net"

Not only is it any transaction over $10K, but any group of transactions totaling $10K, or *ANY* suspicious transactions of *ANY* amount. If you bring in $5000 every day, it's going to get reported.

Happy isn't the point. They will to "clean" the money. After the taxes are paid it can be used for legitimate purposes (or not).

That's why you buy the casino. Million$ will disappear into the profits.
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I saw that too. Unfortunately, it made little sense. I believe Mr. White and his sidekick were being paid $1mil a month. I don't know about the beauty salons in your area, but around here any one of them reporting that kind of money would set off all kinds of red flags. It would take quite a chain of salons to have that much money blend into and not be noticed.
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snipped-for-privacy@optonline.net wrote:

Hmm. You're right.
Maybe an HVAC service company?
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LOL!
How about a Presidential campaign?
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wrote:

If it's over $10,000 it's required to be reported by the casino just as any other cash transaction. And if you claim any money is winnings it's subject to income tax. For example, if someone is living the lifestyle of the rich and the IRS comes a calling, you can't just say "I won 2 million in Las Vegas". They will simply ask for proof, verification from the casino, where were the withholdings, etc.
In other words, I don't see Las Vegas being much more useful at laundering money than banks. Unless you have a crooked casino in on it, in which case there are more banks in the country for that possibility than casinos.
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