Printer Friendly

IRS says more businesses are complying with anti-money-laundering rules.

In the past year, Internal Revenue Service offices around the United States have been checking if businesses are complying with the more-than-$10,000-in-cash reporting rules. According to a recent news release (IR 91-118), these enforcement efforts are paying off, and the number of reports has nearly doubled.

Businesses receiving more than $10,000 in cash in a transaction (or a series of related transactions) in the course of business must report the transaction to the IRS on form 8300. The penalty for failure to comply is $50 per nonfiling. If there is "intentional disregard" of the reporting rule, the penalty can run from $25,000 to $100,000.

The IRS's compliance checks resulted in millions of dollars of penalty assessments against nonreporting auto, boat, fur and jewelry dealers and provided new leads on tax evaders. The stepped-up enforcement apparently resulted in greater compliance among retailers and others that must report: while about 29,000 forms were filed in fiscal 1990, almost 60,000 were filed in fiscal 1991.

Note: Final regulations on the expanded definition of cash (which includes money orders, certified checks, etc.) were issued recently. Businesses must conform to the reporting requirements in those regulations starting with payments received after February 2, 1992.
COPYRIGHT 1992 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Author:Wagenbrenner, Anne
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Feb 1, 1992
Previous Article:New York court declines jurisdiction over Virginia accountant.
Next Article:IRS wants 'revival' of fraud referrals to CID.

Related Articles
The telltale signs of money laundering.
Statements to the Congress.
Lost in the wash: "know your customer" rules send privacy to the cleaners.
U.S. wants CPAs to help fight money laundering.
The CPA's role in fighting money laundering.
'Patriot act' could pose problems for RE industry.
NAIC to comply with USA Patriot Act.
Agencies release Bank Secrecy Act/Anti-Money Laundering Examination Manual.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters