Thread Options Tools
#50993 - 12/27/02 08:57 PM structuring and contacting IRS
Anonymous
Unregistered

If we are filing a SAR for structuring transactions, are we required to call IRS? I think we should, but if we have to, I need to support it with a requirement.
Thanks for you help!

Return to Top
General Discussion
#50994 - 12/27/02 09:08 PM Re: structuring and contacting IRS
Lestie G Offline

Power Poster
Joined: May 2002
Posts: 3,606
Near the Land of Enchantment
You're only required to file the SAR with the Detroit Computing Center - you're not required to call anyone with any SAR filed, to my knowledge. Sometimes local IRS CID's or your regulators, etc. ask for a phone call when you file, but you're fulfilling the law by filing it only with the Detroit Computing Center.
_________________________
Opinions my own.

Return to Top
#50995 - 12/27/02 09:11 PM Re: structuring and contacting IRS
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
I don't think it's necessary. I think the only time you'd call IRS is if you'd undercovered some major money laundering ring. But that's just my opinion.
_________________________
The opinions expressed are mine and do not necessarily reflect those of my employer.

Return to Top
#50996 - 12/29/02 06:43 AM Re: structuring and contacting IRS
cbinder63 Offline

Platinum Poster
cbinder63
Joined: Dec 2001
Posts: 674
Colorado
Check your states requirements as well. In Colorado you have to forward a copy to the State Banking Commissioner within 3 days of filing with FINCEN.
_________________________
Opinions expressed are my own.

Return to Top
#50997 - 12/29/02 03:31 PM Re: structuring and contacting IRS
Ross A Offline
New Poster
Ross A
Joined: Dec 2002
Posts: 20
IRS CID or local police might want to test some of the structured cash for drug residue and that will be impossible if you ship it.
_________________________
The opinions expressed here are my own and may not represent the views of my employer.

Return to Top
#50998 - 12/31/02 06:52 PM Re: structuring and contacting IRS
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
If you check on FinCEN's website for the SAR Activity Review Bulletins (latest one is at SAR Activity Review you will see that over 400,000 SAR's have been filed for "BSA/Sructuring/Money Laundering" since April 1996. I highly doubt that the IRS wants to take phone calls on those.

IMHO, the best thing you can do to cut down on Structuring is to educate your local CPA firms about the forms that get filed when their customers deposit more than $10,000 in cash vs. just under $10,000 cash. I've informally talked to a couple of CPA's on the topic, and they were shocked to know that there is such a thing as an SAR.
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

Return to Top
#50999 - 12/31/02 07:30 PM Re: structuring and contacting IRS
skinnyminny Offline
Gold Star
skinnyminny
Joined: Mar 2002
Posts: 395
Heaven in comparison to my pri...
Bonnie:

I have to laugh every time that a customer explains the reason for structured deposits is "my accountant told me."

My response is usually "Will your accountant go to jail for you or pay your fine?" Educating your customers and CPA firms is a definite must.

For some ethnic groups, it is very hard to explain to them that the IRS is not going to audit their business just because they deposited over $10,000.

In my particular locale, there are numerous ethnic groups that will not accept any checks unless they have done business with their customer for some time. Cash is the only means of payment accepted, especially when a business is in the start-up phase. Constant monitoring is necessary during the first 6-12 months that accounts are opened in order to categorize the "good, the bad and the ugly."

Return to Top
#51000 - 12/31/02 07:31 PM Re: structuring and contacting IRS
Dolly Nugent Offline
Diamond Poster
Dolly Nugent
Joined: Nov 2000
Posts: 1,820
Southern California
Bonnie,

I am not surprised that the CPAs that you spoke to are not aware of SAR requirements. They have a lot of regulatory changed to keep up with too. We just keep trying to educate our customers in hopes that we can change their behavior. We need to get someone from the Wall Street Journal or some other major newspaper to write an article!

_________________________
Dolly Nugent
CRCM
Opinions expressed are my own.

Return to Top
#51001 - 12/31/02 08:01 PM Re: structuring and contacting IRS
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
Dolly - that's a GREAT idea! Anyone here on BOL have any connections with the WSJ? I also think there are some CPA Associations that could be contacted with this information to put in their newsletter. I will see if I can get more information on this. If there is a National Association, perhaps we can get them to take notice?
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

Return to Top
#51002 - 12/31/02 08:09 PM Re: structuring and contacting IRS
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
In reply to:

For some ethnic groups, it is very hard to explain to them that the IRS is not going to audit their business just because they deposited over $10,000.




What would be helpful here is if we have some statistics on how many CTR's are filed every day. I feel sure that the number MUST be close to thousand's per day.

When you tell people that NO ONE looks at the CTR's because of the sheer number involved, it does help to re-assure them. Especially if you tell them that the SAR's are looked at more closely than the CTR's, and which form would they (the customer) rather have filed?

Of couse, you also have to REFUSE to answer any questions on whether you have filed any SAR's on the the customer! "Federal law does not allow me to answer questions about whether or not an SAR has been filed.
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

Return to Top