Example- it's not against the law to deposit $ into your family members accounts, a few hundred to Mom, more to your adult son & daughter, some in your wife's individual account- All at different banks under others SS#. Total for the week is $12,000 but spread out it's not even noticed as connected.
Do this for 3 years+ and no one transaction is illegal but if combined they would be structuring, correct?
At what point would this appear to be a crime? When does it cross over the line to conceal lots of cash?
The bankers do not KNOW what I know. Could they be in trouble? what about his CPA...he doesn't know about the excess cash either- he does tax returns w/ almost no info.
2006-12-05 09:38:20 · 2 answers · asked by upside down 4 in Business & Finance ➔ Taxes ➔ United States
***the money is unreported income.
2006-12-05 12:07:00 · update #1
Just for the record, depositing large sums of money is not illegal or even taxable. Attempting to avoid reporting of large transactions is. Contrary to popular belief, the primary reason large transactions are reported has nothing to do with taxes. The purpose is to detect money laundering and other crimes.
BTW, frequent transactions that are close to the reporting threshold are reported as 'suspicious transactions'.
2006-12-05 11:46:38 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
If the intent is to conceal cash activity that would normally fall under scrutiny it is an illegal act. If the person knowingly deposited the amounts in a staggered way so as to avoid the paperwork and reporting on cash limits they will be prosecuted if they come to the attention of anyone.
The bankers would not be liable unless they knew about the intention to stagger deposits.
The CPA could be held liable for fraudelent returns if it is proved that he did not gather required info to complete the returns.
2006-12-05 17:46:15 · answer #2 · answered by jettyspagetti 4 · 0⤊ 0⤋