- Competitive exchange rates
- Flexible transfer options
- Transfer to 50+ currencies
This article contains links to products or services from one or more of our advertisers or partners. We may receive a commission when you click or make a purchase using our site. Learn more about how we make money.
Updated . What changed?
If you’re planning to transfer more than $10,000 USD to the States, a money transfer service can help you save on fees. Be aware that your recipient will need to report the transfer to the US government.
Yes. No matter where in the States your recipient lives, if they’re receiving more than $10,000 USD while in the US, they’ll need to abide by US laws put in place to both protect both their money and the interests of the American government.
By law, banks report all cash transactions exceeding $10,000 USD — and any transaction of any amount that alerts their suspicions. Money transfer businesses, which often solely send money between countries, sometimes have reporting thresholds as low as $1,000 USD.
US law requires banks and money transfer companies to report:
Taxes aren’t the only thing that can eat into your recipient’s money – compare exchange rates and fees through our partner companies to find the best deal.
When US residents receive foreign gifts of money or other property, they have to report it on Form 3520 — Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts.
US citizens and residents are required to use Form 3520 for:
Form 3520 is considered an “information return,” rather than a tax return, because foreign gifts generally are not subject to income tax. However, there are stiff penalties for failing to submit Form 3520 when it’s required.
The recipient of the transfer is solely responsible for reporting the amount received during the current tax year with their annual tax filing.
The penalties for failing to file Form 3520 on time are equal to the greater of $10,000 USD or the following:
Laws are in place to protect both recipients and the government from fraudulent activity. By monitoring transactions in and out of the US, authorities are able to:
Since 9/11, the US government has put even more stringent laws in place. For example, the Patriot Act allows the government to track money more carefully due to terrorism.
International money transfers that won’t break your business
To prevent the US government from delaying or canceling your money transfers, your recipient will need to provide proof of identity in the form of government-issued photo ID — a driver’s license or passport, for example — and proof of their address.
If the person receiving the money already owns an account with the bank or money transfer company the funds are sent to, they may not need to provide ID every time they receive a transfer. However, online money transfers may come with stricter rules when it comes to proof of ID and could ask for additional documentation or to verify the recipient’s identity by phone.
To avoid the penalties that come with a failure to report large sums of money into the country, it may be worth it to speak to a US tax lawyer to make sure that everything is above board and complies with the laws of all countries involved.
Sending large money transfers to the United States almost always need to be reported to the IRS, failing to do so could lead to a fine or even worse. It may be tempting for your recipient to think they can slip through the cracks and save money, but the fines far outweigh the benefits. Instead, learn how to save money on your next transfer to help offset the taxes your recipient may end up owing.
Here’s what you need to know about international money orders and see if there is a better option for sending money overseas.
With 240,000+ locations in 130 countries, Ria is the third-largest provider of international money transfers in the world. It offers great exchange rates, minimal fees and fast, secure transactions when you need to send funds overseas.
Learn about how COVID-19 may affect the ways you transfer cash around the world.
Here’s what to do if you win the lottery and end up with a large sum of money. Find out out privacy and anonymity, how to claim your prize, taxation and more.
The complete beginner’s guide to selling on eBay, including how to set up a store, eBay fees, shipping options and money-saving tips.
Find out everything you should know about telegraphic transfers and how safe they are.
If you want to start selling on Zazzle, check out our guide to setting up a store, creating products, promotions and marketing, and getting paid.
All the essential info you need to know about selling (successfully) on Wish.com.
Stay in the good graces of the CRA by knowing what’s taxable and tax-deductible when it comes to business loans. Learn tax-filing tips for business owners.
If you want to start selling on Etsy but don’t know what’s involved, you’ll find all the essential info you need to know in this beginner’s guide.
You must be logged in to post a comment.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.