Is failing to file a tax return and pay the taxes a federal crime? Yes
Do you have reason to believe the customers have committed that crime? Since they admitted as much, I'd say again, Yes
Do you have any idea whether the amounts involved exceed the reporting threshold of $5,000? Probably yes.,
Sure sounds like a SAR filing to me. I pay my taxes and file my returns, and I don't take kindly to those who don't pay what they owe.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8