We'll take your word for it...

[Alfrankenstein]

Whenever u.s. citizens have money in offshore bank accounts and theyve paid taxes on which means theyve got nothing to hide but up to what point will the irs investigate the source of funds even if the banks had already done that? Assuming an offshore banker and his lawyers and accountants working together were approached by a client whose funds were questionable but how then how could the irs miss the signs that the source of funds were dirty money then? Did the u.s. govt just take the banks word that the money was legitimate when in fact it wasnt? How could this slip fall through the cracks hence dirty money was being enjoyed in the u.s.? How could the irs miss this then? How could uncle sam fail to pick up on this? Does the govt take the banks word only then? Isnt the u.s. govt suppose to pick up on this to prevent laundered money from entering the u.s.?

 

[Sols]

The IRS doesn't investigate the legitimacy of funds. The IRS will gladly accept tax payments for income from illegal sources.

https://www.irs.gov/publications/p17

Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity.

Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.

 

[Alfrankenstein]

The IRS doesn't investigate the legitimacy of funds. The IRS will gladly accept tax payments for income from illegal sources.

https://www.irs.gov/publications/p17

Then who does investigate such matters?

 

[Sols]

It falls on banks and law enforcement (usually police or FBI).

 

[wellington]

No, there's IRS CLI.... also.

 

[Sols]

No, there's IRS CLI.... also.

IRS Criminal Investigations is almost exclusively focused on tax crimes (not paying tax, not paying enough tax). It's different from the interest police and FBI have, which I believe is the scope here regarding SOF/SOW type checks.

IRS CI isn't as bothered by money laundering or proceeds from crime, but they may hunt you down if you have a tax debt or are cooking the books to lower your tax burden.

 

[Forester]

IRS Criminal Investigations is almost exclusively focused on tax crimes (not paying tax, not paying enough tax). It's different from the interest police and FBI have, which I believe is the scope here regarding SOF/SOW type checks.

IRS CI isn't as bothered by money laundering or proceeds from crime, but they may hunt you down if you have a tax debt or are cooking the books to lower your tax burden.

Yes, remember Al Capone's fate...

 

[JohnnyDoe]

The IRS doesn't investigate the legitimacy of funds. The IRS will gladly accept tax payments for income from illegal sources.

https://www.irs.gov/publications/p17

Sometimes the IRS can be fair

 

[European]

Sometimes the IRS can be fair

Only if the tax burden can be lowered by deducting costs necessary for running the drug business, such as invoices from hitmen, for instance

?