The Internal Revenue Service do not take infractions of their rules lightly. Even unintentional or minor violations are punishable with heavy fines and a potential jail sentence. Under IRC Section 6050I, any person or business that receives $10,000 or more in a single transaction is required to file Form 8300 within 15 days of receiving the funds. All bank deposits made in the US are monitored, and banks are required to report cash deposits in excess of $10,000 to the IRS. The owner of a recycling business in Somerville has been charged by a federal grand jury in Massachusetts with structuring payments in order to avoid detection by regulators.
It was reported that the business owner used two different banks to make 85 transactions between February and October 2008, totaling over $600,000. The indictment is looking to force the business owner to forfeit $636,529, claiming that the funds are the proceeds of illegal activity. Structuring transactions carries a maximum penalty of a $250,000 fine and a five year jail sentence. But this penalty can be doubled if the court finds that the transactions being investigated exceeded $100,000 in one year or if they occurred alongside another law violation.
Cash structuring is a common form of money laundering, and people can be investigated by the IRS even if they did not actually intend to commit a crime. If an individual makes two or more separate deposits that are below the reporting threshold but together add up to over $10,000,they could be investigated for structuring transactions to prevent the bank from filing a CTR with the IRS. Structuring transactions is a federal offense and punishable to the fullest extent of the law, and being accused of doing so can have serious consequences. If being investigated, an experienced Massachusetts attorney can help to resolve disputes with the IRS.
Source: Hartselle Enquirer, Somerville man charged with evading bank reporting, Associated Press, 01 Jun, 2011