We have a roofing company that is a sole proprietorship. Reviewed three months of activity and noted in one of the three months they cashed two checks, one for $6200 and another $4000 two days apart and it was within the last 4 days of the month. The business had not done this before. My assumption they were doing this to pay some of their workers in cash to avoid paying taxes. Should a SAR be filed for structuring.

Also do you file a SAR if you feel a business or individual is attempting to avoid paying taxes.

Thanks for your assistance.

I can't say whether a SAR should be filed for structuring.

I would like to ask what information your investigation of the activity has led you to the conclusion that they are avoiding paying taxes? I agree that tax evasion is a SAR-able activity, I'm just not convinced that paying a worker in cash automatically means tax evasion.

There really is no definitive answer. As I commented on in another thread, I normally look for a pattern before I file a SAR. Others will file if they feel it is structuring whether it be the first or XX time.

Its your job (assuming your the BSA Officer) to make that decision. I will offer this bit of advice. No matter what you do, make sure to be consistent with your filings. I have had regulators from the FDIC, OCC and NYSBD all state that they are looking for consistency with SAR filings.

My feeling is that they may have cashed the checks to pay their workers, but because the workers are undocumented and wouldn't have been able to cash a payroll check since they may not have proper ID. We suspect a lot of that at our bank, but if the business owner comes in to cash a check, the check is good, and he walks out of the Bank, everything else is speculation, provided he's not structuring of course!

"My feeling is that they may have cashed the checks to pay their workers, but because the workers are undocumented and wouldn't have been able to cash a payroll check since they may not have proper ID "

Do you have his whole account relationship? If so, are there any payments to the IRS for payroll withholding? If not, your suspicions are probably more well founded.

rlcarey,

that was written by someone other than the original poster.

There are several prior threads on this... This one includes comments from several people.