obtaining US residency and crypto without SoF
- Thread starter pftz
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I have understood this well. You are, unfortunately, missing the following: In the discussed context, banks and exchanges are acting according to the requests of government and de facto on their behalf. Actually, no exchange (well, exceptions may exist and probably exist) really cares where your assets come from, they want to run their business and make money. AML/CTF regulations (inducing i.a. KYC procedures) are purely governmental tools. Simply said, you are interacting with government via bank.
Yes, and it is not︁ so.
The fundamental complications that you can (and probably︅ will) face do not depend on the amount of crypto you want to cash at︆ the particular moment.
🙂 I do not assume︈ it; but (according to AML/CTF regulations) governments do!
Of course.
You are right, unfortunately; I am well︋ aware of it.
You probably can replace the word “often“ with “usually“.
Very true.
Yet imagine yourself as a US immigration officer︎ or taxman: Wouldn't you be interested how much assets this guy who wants to settle️ here have and what is his source of funds? Especially when you know that if the assets were not clear, it would be pretty easy to freeze them and confiscate later... 😉
Yes, and it is not︁ so.
The fundamental complications that you can (and probably︅ will) face do not depend on the amount of crypto you want to cash at︆ the particular moment.
🙂 I do not assume︈ it; but (according to AML/CTF regulations) governments do!
Of course.
You are right, unfortunately; I am well︋ aware of it.
You probably can replace the word “often“ with “usually“.
Very true.
Yet imagine yourself as a US immigration officer︎ or taxman: Wouldn't you be interested how much assets this guy who wants to settle️ here have and what is his source of funds? Especially when you know that if the assets were not clear, it would be pretty easy to freeze them and confiscate later... 😉
I don't see much of an issue here. There are plenty of options for spending crypto slowly, especially when it's a small portion of the documented wealth.
This question is probably one of the most discussed on this︀ forum. One potential solution is that not all exchanges/EMIs require you to show the entire︁ trace of funds movement; some are satisfied with minimal proof, especially when dealing with small︂ amounts. I believe most of them don't work with US residents, but one could conveniently︃ "forget" to notify them about newly acquired residency. From my perspective, the main risk would︄ be account blocking, but why keep more there than you plan to spend in the︅ near future using their payment card? Correct me if I'm wrong.
This question is of particular︊ interest to me. When filing a tax return, there’s no need to disclose the amount︋ of crypto assets or the wallet addresses used for selling or spending crypto. Theoretically, the︌ taxman could request this information during an audit, but I’d like to have an idea︍ of how this works in practice. How likely is an audit if the amount of︎ crypto spent is insignificant in relation to overall wealth? Do they investigate the origin of️ funds if it goes beyond the scope of verifying tax payments?
I’ve read about how tax authorities in some EU countries might act, but what are some real-life examples regarding the IRS? Is it possible to limit their interest by providing proof of funds availability at the time of acquiring residency (the Step-Up procedure)?
This question is probably one of the most discussed on this︀ forum. One potential solution is that not all exchanges/EMIs require you to show the entire︁ trace of funds movement; some are satisfied with minimal proof, especially when dealing with small︂ amounts. I believe most of them don't work with US residents, but one could conveniently︃ "forget" to notify them about newly acquired residency. From my perspective, the main risk would︄ be account blocking, but why keep more there than you plan to spend in the︅ near future using their payment card? Correct me if I'm wrong.
This question is of particular︊ interest to me. When filing a tax return, there’s no need to disclose the amount︋ of crypto assets or the wallet addresses used for selling or spending crypto. Theoretically, the︌ taxman could request this information during an audit, but I’d like to have an idea︍ of how this works in practice. How likely is an audit if the amount of︎ crypto spent is insignificant in relation to overall wealth? Do they investigate the origin of️ funds if it goes beyond the scope of verifying tax payments?
I’ve read about how tax authorities in some EU countries might act, but what are some real-life examples regarding the IRS? Is it possible to limit their interest by providing proof of funds availability at the time of acquiring residency (the Step-Up procedure)?
To be honest, I can't give you a really solid-founded answer.︃ I have never been interested in getting the US residence permit; and I was always︄ doing my best to keep my interaction with the IRS minimal – so no first-hand︅ experience. I only know well that
– the IRS can be very aggressive if they︆ see some trigger;
– they keep their processes and methods well zipped so it is︇ difficult to dig some useful information;
– wrt the point above, they rarely or almost︈ never go to a court, so not much precedential cases.
Any better informed member is︉ encouraged to comment...
– the IRS can be very aggressive if they︆ see some trigger;
– they keep their processes and methods well zipped so it is︇ difficult to dig some useful information;
– wrt the point above, they rarely or almost︈ never go to a court, so not much precedential cases.
Any better informed member is︉ encouraged to comment...
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