Industry: Chinese Americans in the United States need to honestly declare their income to avoid getting into trouble

Industry: Chinese Americans in the United States need to honestly declare their income to avoid getting into trouble. China News Service, October 30 (Xinhua) The US "World Journal" published an article saying that too much cash income...

China News Service, October 30 (Xinhua) The United States "World Journal" published an article saying that too much cash income is also a worry? Chinese tax professionals point out that many Chinese who receive large amounts of cash income from work do not honestly declare their cash income when filing income taxes. However, with the advent of the big data era, it is no longer just the IRS that may come to check for tax evasion. Sometimes, the relevant federal agencies involved in criminal investigations come to the door. It is recommended that in addition to honestly reporting cash income, deposit cash into bank accounts. Do not deliberately break it into parts and deposit less than 10,000 U.S. dollars (the same below) at a time. Avoid the requirement to report to the Ministry of Finance for "cash in and out of more than 10,000 U.S. dollars", because doing so is more likely to get into trouble.

Data map: US dollars. (US "World Journal" reporter Wang Shanyan/Photography)

> Accountant and lawyer surnamed Tong pointed out that many Chinese people with cash income do not honestly declare their cash income in order to avoid the federal and California government's combined income tax of at least 40%. Although they have cash on hand, cash transactions are actually not popular in the United States. Many years ago, in order to prevent illegal money laundering, the government stipulated that banks and businesses must report to the Ministry of Finance all cash incoming and outgoing from customers of more than 10,000 yuan. As a result, when large amounts of cash exceeding 10,000 yuan are used to buy valuables such as jewelry, gold, or cars in the United States, businesses generally refuse to accept them to avoid the hassle of reporting.

Some Chinese people then deposit cash into personal bank accounts at a cost of less than 10,000 yuan at a time. Lawyer Tong said that if this is done frequently, it will constitute a "structured transaction". Bank staff will report to internal anti-money laundering staff and report to relevant units, which may lead to criminal investigation.

Lawyer Tong said that in the past two years, large banks in the United States will also take the initiative to close personal accounts that often have large amounts of cash in and out, and will send a stern letter. It states: Your personal account will not be able to withdraw or deposit within 30 days. Please check whether there are any uncashed checks that need to be processed. If not, the bank will send a cashier check to your account balance after 30 days. Please do not appeal or complain, this decision is final.

He dealt with clients who encountered this situation. Some were overseas students, and some were people who had just immigrated to do business. The latter did not know that they actually opened a company account in the bank at the beginning, so they could reasonably explain why large amounts of cash often came in and out of the account. As long as they honestly declared their cash income when filing taxes, it would not pose a problem.

Accountant surnamed Li pointed out that many Chinese people think that cash income is not reported and the IRS does not know it, but in fact it can be calculated. He believes that instead of not reporting and worrying about being discovered, it is better to report honestly and use reasonable tax-saving methods. For example, a couple running a small business can open a SIMPLE IRA with tax deferral function. Each person can put in 12,500 yuan a year, and the couple can put in 25,000 yuan. At the same time, you can reduce your income and achieve the purpose of paying less income tax.