Because of the complexity of Internal Revenue Service Code Section 6050I, this article is broken down into five parts: (1) Enactment of Section 6050I, (2) Operation of Section 6050I, (3) Use of Section 6050I in Law Enforcement, (4) Form 8300 Disclosures, and (5) Tax Policy. So hold onto your seats as we peel off the layers of Section 6050I to expose its true purpose.

E. Tax Policy

Does section 6050I represent good tax policy? The Internal Revenue Code has long been used for non-tax reasons. Economically and socially desirable conduct is encouraged through exclusions from tax and an allowance of deductions. For example, the Code encourages donations to charity by providing for charitable deductions. At the same time, Read More

Because of the complexity of Internal Revenue Service Code Section 6050I, this article is broken down into five parts: (1) Enactment of Section 6050I, (2) Operation of Section 6050I, (3) Use of Section 6050I in Law Enforcement, (4) Form 8300 Disclosures, and (5) Tax Policy. So hold onto your seats as we peel off the layers of Section 6050I to expose its true purpose.

D. Form 8300 Disclosures

Section 6050I’s use as a weapon in the IRS’s criminal arsenal began in 1998. That year, Congress authorized the Secretary of the Treasury to disclose Form 8300s to officers and employees of any federal agency for the administration of federal criminal statutes not Read More

Because of the complexity of Internal Revenue Service Code Section 6050I, this article is broken down into five parts: (1) Enactment of Section 6050I, (2) Operation of Section 6050I, (3) Use of Section 6050I in Law Enforcement, (4) Form 8300 Disclosures, and (5) Tax Policy. So hold onto your seats as we peel off the layers of Section 6050I to expose its true purpose.

C. Use of Section 6050I in Law Enforcement

Why is Form 8300 of interest to federal authorities? Primarily for its use in combating money laundering. The government devotes vast resources to identifying and locating income derived from criminal activity. While precise figures are not available, federal law Read More

Because of the complexity of Internal Revenue Service Code Section 6050I, this article is broken down into five parts: (1) Enactment of Section 6050I, (2) Operation of Section 6050I, (3) Use of Section 6050I in Law Enforcement, (4) Form 8300 Disclosures, and (5) Tax Policy. So hold onto your seats as we peel off the layers of Section 6050I to expose its true purpose.

B. Operation of Section 6050I

Under Section 6050I, any person engaged in a trade or business must report any cash transaction that exceeds $ 10,000 to the IRS. This is called the “Form 8300” requirement. It has four parts. Part I requires the filer to identify the person from whom the cash was received. Part II requires information about the person or persons on whose behalf the Read More

Because of the complexity of Internal Revenue Service Code Section 6050I, this article is broken down into five parts: (1) Enactment of Section 6050I, (2) Operation of Section 6050I, (3) Use of Section 6050I in Law Enforcement, (4) Form 8300 Disclosures, and (5) Tax Policy. So hold onto your seats as we peel off the layers of Section 6050I to expose its true purpose.

A. Enactment of Section 6050I

Congress enacted section 6050I to attack and unearth the underground economy. As enforced, however, section 6050I has been used as a weapon in the IRS’s criminal arsenal. The underground economy is comprised of “those persons outside the tax system who deal in currency.” While money launderers are certainly participants in the Read More