What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit?

The anti-structuring provision of the IRS Cash Reporting Rule prohibits advising customers on how to get around the rule. This provision is designed to prevent individuals from deliberately attempting to evade the cash reporting requirements by executing a series of smaller transactions that collectively meet or exceed the reporting threshold. The intent behind this regulation is to ensure compliance with financial transparency and to detect potential money laundering or tax evasion activities.

When car salespersons or any financial professionals provide guidance on circumventing reporting requirements, they undermine the integrity of the system and may inadvertently facilitate illegal activity. The anti-structuring provision seeks to maintain the core principles of lawful transaction reporting and protect the financial ecosystem from manipulation.