Interesting I never knew the actual term for this I just often thought of this as a strategy that money launderers used for obvious reasons.
there's different types of money laundering. structuring is just one of them. you could open up a "cash intensive" business and launder your money through that. but that's alot more trouble than just splitting your money up into $9000 chunks and hoping the bank doesn't notice.
yeah nice find there. from one of your linked articles:
https://dailycoin.com/new-irs-crypto-law-targets-traders-with-ambiguous-tax/
Taxpayers must report identity details of the party sending them over $10,000 worth of cryptocurrency. This includes the name, physical address, social security number, transaction amount, and nature of the transaction. As though it's not hard enough to get someone to send you $10,000 in bitcoin, now you have to collect all their personal info including Social. Who wants to give out their social security number to someone they are sending money to? Couldn't that be used to steal their identity or does the IRS even care about that?
The new rule applies to individual crypto holders and businesses dealing with digital currencies. It mandates reporting sender information even if the party’s identity information is unknown or the transaction context does not allow identity information collection. A failure to meet the reporting requirement gives way to potential felony charges for non-compliance.A felony is a pretty big deal. Because someone that got caught up in that dragnet will probably be fully audited as well. By the IRS no doubt.
Did you see this story?
IRS Delays Requiring Users of Venmo And Other Payment Apps To Report Transactions Over $600
https://www.forbes.com/advisor/taxes/cash-apps-to-report-payments-of-600-or-more/Under current law, the IRS requires payment apps, known formally as “third-party settlement organizations,” to issue Form 1099-K to report when certain payment transactions meet both these criteria:
Gross payments exceed $20,000
More than 200 transactions are completed within the year
The new law will eventually require users to receive Form 1099-K for any payments of goods and services over $600, regardless of the number of transactions. That means more people will receive the forms.
I think right now they have the limit set at $5000. Anything more than that, they have to tell the IRS about what you been up to.
The operator of the Zelle payment platform, Early Warning Services, said in an email statement that Zelle doesn’t settle funds but rather provides messaging between a financial institution and people making the payments. So the company said Zelle will not be subject to the new law.
That sounds like a loophole but everyone is going to want to get paid by zelle so they can avoid getting a 1099-K report filed on them.
