The IRS involves itself in criminal investigations that have to do with money. So, if a federal agency believes that you may be involved in a money laundering scheme, you could find yourself the target of the IRS.
Your financial transactions and other activities may be considered money laundering if they are designed to hide the source of your money. Many people use these tactics to make it appear that they have received the money from a legal source when it actually came as a result of illegal activity.
One of the ways the IRS may attempt to discover whether you are engaged in money laundering is through the examination and investigation of your income tax returns. If you have income that you did not report on your taxes, and there is no way to verify where the income came from, it looks very suspicious and could lead to charges of tax evasion as well as money laundering.
The IRS seeks documentation that you are involved in money laundering by searching through records of bank accounts and real estate files, as well as other documents that indicate money movement. The agency seeks links between:
- The source of the money
- Who received the money
- When the money was received
- Where the money has been deposited and stored
Financial outlets outside of the United States are also vulnerable in the investigation. Transactions in foreign countries may be examined, as well.
This information about money laundering is general in nature, and does not address all the complexities of the offense or its repercussions. Therefore, it should not replace the advice of an attorney.