We have a business customer, an LLC, that has a ton of, what appear to be, personal transactions being conducted through the account. I would say approximately 70-80% of the activity on the account appears to be for personal purposes. The business in question is a small local manufacturer LLC and the expenses in question normally include 3 fast food POS debits each day, supermarket debits, gas station debits, cash withdrawals from ATMs and various other POS transactions that appear to have no business purpose and are out of pattern for a manufacturing company. I feel that this could potentially be a sign of tax evasion, having the business expense the personal expenses, but I do not have tax returns. There are multiple debit cards attached to the account all to family members of the owners, including the owners themselves, a daughter and a grandson. When I inquired with the branch that conducts the business' transactions, the branch staff indicated the debit card given to the grandson was purely for the grandson's college expenses. I had the branch contact the customer and verify that they knew the expenses were occurring, the customer indicated yes. I then had the staff ask if they were legitimate business expenses, to which the owner also indicated yes.
My question is, should I file a SAR, for tax evasion, since these transactions are out of pattern for a normal manufacturing company, the transactions appear to be for personal purposes and I have the owner indicating that these transactions are legitimate business expenses, when in reality the transactions appear to be for the personal use of the owner, daughter and grandson?