Have Legal Questions? Ask a Lawyer Now.
Thank you for your question. Zdrastvuite, please allow me to assist you this afternoon.What you are describing does violate US law, or at least can potentially violate it. Funding from PayPal is reportable to the IRS at this time. Sending funds overseas via your PayPal account could be considered money-laundering since those are funds being sent without oversight to an overseas source, something that is generally reportable. So yes, you should very much be concerned as this would be a federal law violation. Any wiring of funds overseas is reportable regardless of who pays taxes and where--the moment you begin using your own bank account you are exposing yourself to the IRS and even potentially the FBI.Good luck.
Does it mean if I report to the funds to IRS as income and pay taxes here, there is no violation?
Thank you for your follow-up, Pavel.So long as you can account for the funds, that the funds were received properly, that you report the receipts on your W-1099, and that you pay taxes on all receipts, you then can claim that there is no violation. What concerns me is the fact that you are collecting funds from overseas--that is inherently risky and if the amounts are substantial (over $10,000), the FBI may track the payments to ensure that the funds going in and coming out are not from dubious sources and are not in any way illegal, dangerous, from terrorist organizations, or are otherwise forbidden as a transaction.Good luck.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).