I am expecting a transfer from a bank in Mexico of more than one million U.S. dollars. Will the bank deduct taxes from this amount to give to the IRS? I know they will report it, which is fine, and I will pay the taxes on it when I need to, but someone told me the bank will automatically take out 30-35% and that scares me. Please advise.
Untitled
You have been given some serious misinformation. Here are the facts:
1. Banks do not withhold taxes from wire transferred funds. A wire transfer is not necessarily indicative of income, so it would not make sense to withhold taxes.
2. Banks do not report wire transfers to the IRS, either. Banks are required to report large cash transactions, but wire transfers are not cash. A bank would, however, maintain a record of the wire transfer, and would file a report if it suspected that the wire was in any way illegal.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
You have been given some serious misinformation. Here are the facts: