Not having a firm grasp on all the financial happenings within our country is common. There are many different agencies, departments and groups that play vital roles within our nation’s economic health. One such agency currently getting attention from the mass media is FinCEN.
What is FinCEN? FinCEN stands for the United States Financial Crimes Enforcement Network and is an agency of the U.S. Department of Treasury. This federal agency gathers and reviews financial information that is suspected to have ties to money laundering or terrorism. As noted in a recent report by the National Law Review, this agency is known for its ability to “dig deeper than tax returns.”
Why is FinCEN getting media attention? This federal agency is currently on the radar of the media due to its investigation into allegations of Russian involvement in the 2016 United States Presidential Election. FinCEN is reportedly providing information to Congress for review in connection to these allegations.
How can this agency “dig deeper than tax returns?” FinCEN receives various reports as part of its duties under the Bank Secrecy Act (BSA). This law requires reports from a wide range of institutions, including banking and financing organizations as well as casinos and dealers in precious metals.
Reports required under the BSA include Suspicious Activity Reports (SARs) and currency transaction reports. SARs are required for a number of different transactions, including those that are believed to involve insider abuse and transactions for over $25,000. Currency transaction reports are also required for any cash transaction that exceeds $10,000. The agency can also require financial institutions to provide financial information on its behalf.
Does this concern the average taxpayer? Individual taxpayers and businesses alike can take this information as one of the many ways the government is looking for those who fail to comply with tax laws. Anyone that is concerned they may have a tax compliance issue is wise to seek legal counsel. An experienced tax litigator can help to better ensure your finances are in compliance with current tax laws.
