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Spending $250K for Centurion, How About IRS? Large Cash deposits out of your league?

Spending $250K for Centurion, How About IRS? Large Cash deposits out of your league?

Old Aug 15, 10, 7:33 pm
  #16  
 
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For United States card holders it really was 250k a year PAID not spent. You may be getting confused about other Centurion countries. Let's forget about the spend issue and try and get back on the main topic of this thread which in the OP case would most likely result in MONEY LAUNDERING
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Old Aug 15, 10, 7:42 pm
  #17  
 
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Originally Posted by Centurion View Post
For United States card holders it really was 250k a year PAID not spent. You may be getting confused about other Centurion countries. Let's forget about the spend issue and try and get back on the main topic of this thread which in the OP case would most likely result in MONEY LAUNDERING
hey centurion, all my credit cards are US based, despite my handle. maybe i am an anomaly. i have never spent anywhere near 250G+ in one year. i rejected the offer, because i dont get enough benefits out of the card to justify the price, and i wont get one just to say i have it. as for the topic at hand, not only will he get heat from the irs, but he is surely setting himself up for a financial review, and will end up having his account closed altogether. i would suggest he stops charging up everything for everyone, and suggest his SO, his SO's mother, and other random people he knows get their own credit cards and charge their own purchases.
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Old Aug 15, 10, 7:53 pm
  #18  
 
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I think what you were all refering to is called Smurfing. Gotta be careful with what you do!
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Old Aug 15, 10, 8:12 pm
  #19  
 
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Originally Posted by FoundInRNO View Post
I think what you were all refering to is called Smurfing. Gotta be careful with what you do!
sorry, but he is not smurfing at all... he is not trying to break up transactions into smaller transactions... he is in fact trying to make bigger purchases, by not only buying his stuff but everyone else's too.
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Old Aug 15, 10, 10:28 pm
  #20  
 
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Originally Posted by taipeiflyer View Post
hey centurion, all my credit cards are US based, despite my handle. maybe i am an anomaly. i have never spent anywhere near 250G+ in one year. i rejected the offer, because i dont get enough benefits out of the card to justify the price, and i wont get one just to say i have it. as for the topic at hand, not only will he get heat from the irs, but he is surely setting himself up for a financial review, and will end up having his account closed altogether. i would suggest he stops charging up everything for everyone, and suggest his SO, his SO's mother, and other random people he knows get their own credit cards and charge their own purchases.
I'd love to know what your relationship with AMEX is that you were invited to cent spending <250K a year, and don't forget its all your Amex cards combined spend. Unless you are talking years ago when the spend was less. I was invited when it first rolled out, didn't see use for the cost so didn't get it. I avg. around 180-200k a year spend with Amex and haven't had any invitations in years. (Not that I really go out of my way to ask.) I believe I had asked about it in passing while on the phone with plat a year or 2 ago and was told my spend was low. So very curious as to how someone with lower spend gets/got the invite.
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Old Aug 15, 10, 10:28 pm
  #21  
 
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Originally Posted by taipeiflyer View Post
you are right... a little over $100,000 can cut it. i know from personal experience in the last year. the $250,000 figure is a mythical creation by the cardholders who carry it to make themselves sound like bigger spenders than most of them actually are.
It was $150k from 2001-2005, then became $250k paid per year. As of this year, it is higher.
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Old Aug 15, 10, 10:33 pm
  #22  
 
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Originally Posted by mlad1101 View Post
I'd love to know what your relationship with AMEX is that you were invited to cent spending <250K a year, and don't forget its all your Amex cards combined spend. Unless you are talking years ago when the spend was less. I was invited when it first rolled out, didn't see use for the cost so didn't get it. I avg. around 180-200k a year spend with Amex and haven't had any invitations in years. (Not that I really go out of my way to ask.) I believe I had asked about it in passing while on the phone with plat a year or 2 ago and was told my spend was low. So very curious as to how someone with lower spend gets/got the invite.
Don't bother being curious; it didn't happen.
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Old Aug 15, 10, 10:35 pm
  #23  
 
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Originally Posted by Centurion View Post
For United States card holders it really was 250k a year PAID not spent. You may be getting confused about other Centurion countries. Let's forget about the spend issue and try and get back on the main topic of this thread which in the OP case would most likely result in MONEY LAUNDERING
Remember, the "main topic" is how he will spend the $250k for Centurion. I would hate for this person to go through all of what is described, just to find out that (s)he still wouldn't qualify!
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Old Aug 15, 10, 10:45 pm
  #24  
 
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Originally Posted by Centurion View Post
The OP would not owe sales tax. The OP would not be credit card factoring. The OP would have to worry about his bank filing SARS.

But I WOULD REALLY WANT TO KNOW WHY MY FRIEND HAS SO MUCH CASH AND WHERE IT CAME FROM.
That would be my question too. If he can pay the merchants directly in cash, why does he need you? Whenever unnecessary steps are introduced into a payment chain, it starts sending up money laundering red flags.

That doesn't always mean there is money laundering going on, there could be another explanation. But you should know what the explanation is.
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Old Aug 15, 10, 11:28 pm
  #25  
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Originally Posted by boncovi View Post
As I said, I don't have an extreme lifestyle, I don't fly or stay at hotels a lot, so I won't pay $7,500 to get the Centurion even if they offer it to me today.

I was discussing about it with a friend yesterday and wanted to ask what would happen, because I always see stuff like "how to get centurion" and they say "spend, spend, spend like there's no tomorrow", Charge everything on the card. I wondered if anyone had issues with spending "so much" personally while they don't make that much money. That's it.
Let's remember this first
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Old Aug 15, 10, 11:33 pm
  #26  
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Originally Posted by alanh View Post
That would be my question too. If he can pay the merchants directly in cash, why does he need you? Whenever unnecessary steps are introduced into a payment chain, it starts sending up money laundering red flags.

That doesn't always mean there is money laundering going on, there could be another explanation. But you should know what the explanation is.

Well, actually he looks like he's doing fine dealing cash and he doesn't need me. But I feel like if I approach him and offer to use my card for his expenses, he will say no problem.

I won't do it for MR points, I won't do it to qualify or possibly get a Centurion. First of all, I won't probably qualify because of my income, then even if I qualify, I won't pay $7,500 to get it and $2,500 every year to keep it, because I probably won't use any of the perks.

I'm clarifying one more time, everyone is talking about "spend everything on the card, charge everything on amex to spend 250K". No one mentioned about this part, therefore I asked.

As for his cash, I don't know why he deals in cash or use only cash. As I said he's a good customer that has been shopping from us for a year now. He's not a friend or anything.
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Old Aug 15, 10, 11:36 pm
  #27  
 
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Originally Posted by aviators99 View Post
Don't bother being curious; it didn't happen.
it was 7 months ago... my spend is a little more than half of the mythical 250+ number, so keep spouting falsehoods to make yourself feel special. my god-brother has one- it works for him, not so much for me. sorry, but your information is flat-out wrong. maybe i am just more important to amex than you are... 250 is not the baseline for everyone.
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Old Aug 16, 10, 3:57 am
  #28  
 
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Originally Posted by taipeiflyer View Post
you are right... a little over $100,000 can cut it. i know from personal experience in the last year. the $250,000 figure is a mythical creation by the cardholders who carry it to make themselves sound like bigger spenders than most of them actually are.
I call BS. I had to spend over 250K on my first SPG card to get "invited" to have a Centurion card (of course, this was before the economy crashed). The OP is quite lucky with his 30K spending limit - I was just issued another SPG card (decided I like the starpoints better than MR) with a measly $5,000 limit (eventually raised to $15K with a lot of effort), am still a Centurion cardholder and had ~$700K in the bank with Amex! Go figure.
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Old Aug 16, 10, 7:56 am
  #29  
 
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I guess my question is: Why would you do this if you're not interested in getting the Centurion and not interested in the MR points???

It's a lot of effort and many possible negative actions can be taken against you for something that you don't seem to care about.

But, anyway, as one poster mentioned, it doesn't matter if your customer would let you do it, if your bank would have a problem with it or not.... AMEX will put you under a FR in about a month (honestly, probably a week) if you start hammering your card with tens of thousands of dollars in electronics. Then, no matter if you're paying off your card every month or not (or making payments during your billing period), they'll cut your limit down once they verify your income and bank account balances.

So, no matter what other problems you may or may not have, AMEX won't let this happen.
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Old Aug 16, 10, 9:01 am
  #30  
 
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How about someone who works in finance taking a stab at this:

First off, what this poster wants to do is not illegal. It is only money laundering if he is moving/hiding money for a criminal activity or with the intent to evade taxes--then it becomes conspiracy to commit tax fraud and actual tax evasion.

Any banking transaction of $10k or more in cash has to be reported to the IRS. Checks, wire transfers, etc. are not held to this as there is a paper trail. If this man were to refund you with a check there is no problem.

The actual problem is that every transfer he gives you over about $12k (I think that's the limit for a tax-exempt "gift") is subject to U.S. income tax. So every time you received money from him, you would have to pay taxes therefore making every transaction with him a losing one. Wouldn't take long to be in the 35% tax bracket, therefore making your 60k/year base salary worthless when it is taxed at 35% + state income tax + medicare tax + social security. Going to work would suck for you.

As for the AMEX angle: if you make 60k and are spending a lot, it's only a matter of time before you are subjected to a financial review. When you are unable to provide income tax returns or a bank account with a 6-month average monthly balance that justifies your spending, your account will most likely be VERY limited and/or closed. Your $30k/month spending ability is mainly theory. I am sure AMEX would cut you off if you even approached that and have you pay down some of the balance first.

In short, you sum up the problem with America. If you want a Centurion card, work hard and get the income to have that. Not everyone can be a high roller. Also, the pursuit of ridiculous status symbols like a Centurion Card is absurd. I'd rather have that cash in the bank or a nice sports car. A credit card in the wallet means nothing.

Remember, "Those who say, don't know. Those who know, don't say."
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