A building needs a sound structure to survive. In the world of tax, structuring is something to be avoided. A used car dealer in Waterloo, Iowa has learned that.
The IRS learned of alleged structuring of deposits for Century Finance, a lending arm of Champion Motors in Waterloo. The IRS raided the business. I’m unsure if they found any structuring, but they did find an alleged theft of $71,000 from the business by Brian Beckman. Mr. Beckman wasn’t prosecuted for the theft, but for the tax loss from the theft. Now that loss is only $6,400 but it has also led to Mr. Beckman pleading guilty to filing a false tax return.
For those who aren’t aware, structuring in tax is making cash deposits smaller to avoid currency reporting requirements. If you make a cash deposit of $10,000 or more, a currency transaction report is required. So some unscrupulous individuals break that up into two $5500 deposits. That’s a felony (if done deliberately): structuring.
As for Mr. Beckman, it’s likely he’ll receive probation and restitution.