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

The anti-structuring provision of the IRS Cash Reporting Rule is designed to prevent individuals or businesses from engaging in practices intended to evade the reporting requirements outlined for cash transactions exceeding $10,000. This provision specifically prohibits advising customers on how to circumvent these regulations, as such actions undermine the intent of the rule and could facilitate illegal activities like money laundering.

When individuals attempt to break up larger transactions into smaller sums to avoid detection or reporting (a practice known as structuring), it poses a significant risk to the integrity of financial reporting and oversight. Therefore, the focus of the anti-structuring provision is on maintaining compliance with the law by preventing any guidance or strategies that would help clients avoid proper reporting of cash transactions. This reinforces the overall goal of transparency in financial transactions.