NCJ Number
155847
Date Published
1991
Length
24 pages
Annotation
This report analyzes the extent to which United States Customs Service contractors involved in the management and disposal of property seized under the asset forfeiture law comply with Internal Revenue Code reporting requirements on cash sales of more than $10,000.
Abstract
The reporting requirement established by Congress in 1984 aimed to help ensure that tax revenues were not being lost from unreported cash incomes. In 1988, Congress extended the use of this information to other Federal agencies as a means of identifying individuals who may be involved in laundering money. The review of Customs' auction sales of items such as cars, boats, plans, and electronics revealed 104 cash transactions totaling about $2.4 million that took place during fiscal years 1989 and 1990 that were not reported. The previous management contractor did not maintain complete records for each sales transaction and did not file the Internal Revenue Service returns because it believed it was not required to report them. Testing of 3,675 sales transaction records revealed only 26 possible prohibited purchases by Customs employees, subcontractors, or their employees. Customs officials report that the current management contractor is obtaining more complete sales information. Only one case, which involved a vehicle of low value, involved the purchase of a seized property by the individual from which it had been seized. Appended background information, tables, and agency comments