I receive two monthly transfers from those who rent out my properties: one has always been made via Western Union. The other via traditional bank transfer. Now, those who have used Western Union have told me they will use bank transfers for fear of tax audits. Just out of curiosity: can money sent via Western Union be subject to tax audits? Thanks.

Tracking would be possible at either the source or the destination.  Which end of the transfer are you concerned about?

If you are earning money and there are taxes due, then it probably doesn't matter how it is remitted. You might want to find out what the consequences are before you commit a crime of not declaring income that is legally due to be reported. If need be, consult an accountant... 

1 minute ago, gamb00ler said:

Tracking would be possible at either the source or the destination.  Which end of the transfer are you concerned about?

Source.

2 minutes ago, 1FinickyOne said:

If you are earning money and there are taxes due, then it probably doesn't matter how it is remitted. You might want to find out what the consequences are before you commit a crime of not declaring income that is legally due to be reported. If need be, consult an accountant... 

I'm not talking about myself, since I'll be paying taxes on that money too.

But I don't understand how money sent via Western Union can be traced and subject to penalties: perhaps because, while money are  declared with the bank, it's not when using Western Union?

5 minutes ago, Fabio1980 said:

I'm not talking about myself, since I'll be paying taxes on that money too.

But I don't understand how money sent via Western Union can be traced and subject to penalties: perhaps because, while money are  declared with the bank, it's not when using Western Union?

I have not used Western Union for decades -  - but surely in these days, they will have a record of who sent and who dcvd the money...

 

ps - I do remember sending money via Western Union and being required to give my name and other identifying information. 

Sort of related and first I have heard of this. Tucked away inside the Big Beautiful Bill apparently.

U.S. Remittance Tax: What to Know Before Sending Money Abroad

https://1040abroad.com/blog/u-s-remittance-tax-what-to-know-before-sending-money-abroad/

All banks and businesses in the money transfer industries have reporting obligations. In Australia we have Austrac where information is available on transfers overseas by bank or Western Union or whatever. Thailand apparently - based on Google - has AMLO - which appears to be similar - information would likely be available to government agencies if they have rights to access it under the law. 

the guy from integrity legal has just released a video on the very subject

 

 

My take on all of this is that it is a clear indication that the old debt based legacy fiat money system is increasingly in trouble. It's what all the taxes and banking restrictions we are seeing these days are about.  They are going to try print their way out and create even more inflation, devaluing your hard earned time and energy savings. It is either that or default and we all know, no politician is going to allow that on his/her watch.  Not financial advice, but I for one am making sure I hold precious metals and more crucially Bitcoin.  The writing is on the wall, take it or leave it. 

If the money is coming from the US then it will be subject to the 1% remittance tax if sent via Western Union.  The sender pays the tax.  If it is a bank to bank transfer the there is no tax.  Wise has a good summary of what will be subject to this tax.

 

https://wise.com/us/blog/remittance-tax