What is FinCEN?
The Financial Crimes Enforcement Network (FinCEN) is an organization associated with the United States Department of the Treasury. Its purpose is to check and balance the financial transactions of the citizens, thus analyzing, collecting, managing the currency, and preventing financial offenses. The major field of concern for FinCEN is to pinpoint any suspicious activity by any person, track it, and if someone is found transgressing the law, then hold them accountable.
Understanding FinCEN Form 105:
FinCEN Form 105, officially known as the Report of International Transportation of Currency or Monetary Instruments (CMIR), is a document required by the U.S. Department of the Treasury. Its primary purpose is to track the movement of large sums of money across borders to prevent money laundering, terrorist financing, and other financial crimes.
Who Needs to File FinCEN Form 105?
If you are traveling into or out of the United States and carrying more than $10,000 in currency or monetary instruments (such as traveler’s checks, money orders, or negotiable instruments), you are required to file FinCEN Form 105. This rule applies to both U.S. citizens and foreign visitors.
How To File a FinCEN form 105?
The FinCEN form 105 is available on the Internet for anyone to either
- Print it and then fill it out.
- Using any electronic device, just type it and then print it.
- Online: https://fincen105.cbp.dhs.gov/#/
Moreover, the form can be obtained from any Customs and Border Protection office. It can then be given to the Customs officer in charge at any port of entry or departure, or you can simply mail it.
It is quite rare that traveling with $10,000 USD goes unnoticed by the Customs and Border Protection (CBP) or Homeland Security Investigations (HSI), so it is better to file the FinCEN form 105 so you can ensure you prevent Currency Seizures in any way.
Is FinCEN form 105 reported to the Internal Revenue Service?
While FinCEN Form 105 is not directly reported to the Internal Revenue Service (IRS), the information collected through this form is shared with various government agencies, including the IRS. As discussed, the form is primarily used by the Financial Crimes Enforcement Network, which is a bureau of the U.S. Department of the Treasury. FinCEN is responsible for combating money laundering, terrorist financing, and other financial crimes.
The IRS may access the information provided on FinCEN Form 105 for its own enforcement purposes, especially in cases where there are concerns about tax evasion, illegal financial activities, or other potential violations. Therefore, it’s important for individuals to be truthful and accurate when completing the form, as the information can be used by multiple agencies to ensure compliance with various financial regulations.
It’s worth noting that the primary focus of FinCEN Form 105 is on preventing and detecting illicit financial activities, and while the IRS may receive information from the form, it does not serve as a direct tax reporting document. For tax-related matters, individuals should refer to other IRS forms and guidelines applicable to their specific situation.
Contact us at Abady Law Firm should you require assistance.
