We have a non-customer that cashed a check that required a CTR. This person ia a non-resident alien. We e-filed the CTR with the SS# that he gave us and it came back with an error acknowledgement. The name and SS# did not match. After getting back in touch with this person to get the corrected information, he told the teller that the SS# was no longer any good. He said that immigration took his papers from him and that he was suppose to be going to court to get everything straightened out.

This person has 2 last names (for example - Smith Jones). When the CTR was filed the first time only the first last name (Smith) was used as the last name.

An amended CTR was filed using both last names with NONE for the SS#. The amended CTR was acknowledged without error.

My question is whether or not a SAR should be filed because this person gave us a wrong SS# (false statement)? We are still cashing checks for him because the checks are on one of our customers. So we are continuing to file CTRs.

A nonresident alien must file Form 1040NR or Form 1040NR-EZ if they are engaged in a trade or business in the United States, or have any other U.S. source income on which the tax was not fully paid by the amount withheld. This form calls for an identifying number. I would ask for and use that number.

<<My question is whether or not a SAR should be filed because this person gave us a wrong SS# (false statement)? We are still cashing checks for him because the checks are on one of our customers. So we are continuing to file CTRs.>>

If you think fraud was committed then you must file a SAR.
Have you got identifying documents from him now?
His comment that "immigration took his papers" makes me a little suspicious...

We have a passport & DL. No social security number. We amended the CTRs and put "NONE" where the social security number goes on the CTR. We received acknowledgement on the CTR withour errors. This makes me wonder if I should file a SAR since the CTRs were acknowledged without error.

The CTRs are without error because now there is no SSN to match against the name.
That does not bless him as legitimate.
He told you that his SSN "was no longer good".
Which probably means he had a work permit for a fixed period and he has overstayed his time.

I assume the passport is valid?
So at the very least you may have an NRA working illegally in the country.
There are many of those.
I am not sure how I feel about yours though, as generally when I think of illegal workers they are earning minimum wage in the fields; yours has amounts over $10,000.00.
So back to the SAR, if you do not think fraud was committed then there is no need to file, but since you were concerned enough to have this conversation I would document the episode with a SAR Not Filed write-up and explained what has transpired.

If you forget about the fraud issue, you may want to file a SAR based on the dollar amount being cashed out by an NRA for work - if you think it is suspicious, and include his comments about his papers being taken from him.

Hope that helps you...

Fraud would also include income tax evasion - one of the initial reasons for the CTR.

Thanks for everyones replies! It will help me to decide what I am going to do now.