When I was in college, I was taught that there is a right way journal entries should be written and many wrong ways. There’s an appropriate structure to a journal entry, and you want to make sure you keep the appropriate backup.
That has nothing to do with this post.
Indeed, since we’re dealing with bozos here, an incorrect structure is where we need to start. The United States has various financial and currency reporting requirements. If you deliberately structure transactions to avoid these laws, you’re guilty of the crime of structuring.
So don’t deposit $10,000 in cash; make sure your deposits are $9,000. I’ve written on several occasions about individuals who have structured transactions. One bozo did just this, and made sure he never used the same bank branch on the same day (he used $5,000 transactions). Unfortunately for him, the bank manager of the second branch he used happened to be visiting at the first branch he used earlier on the same day. When she wrote up the currency transaction report, she glanced at the account history and noticed the pattern…a pattern that the IRS learned about. That bozo is now spending time at ClubFed.
Today, transactions of as little as $3,000 can be reported if a bank employee is suspicious, and you probably won’t be told of the report. What’s the solution for the crooks of the world? Well, the simple solution is to report your income on your tax return, whether it’s in cash, checks, or credit cards. For the bozos, unfortunately cash is very difficult to deal with, and money laundering is quite illegal.
The truth is that structuring continues, because many get away with. Just be aware you are committing a felony if you structure your transactions (in an attempt to avoid tax or reporting), and if you get caught ClubFed might be in your future.
Tags: BozoTaxTips