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Now I'm fascinated. What would happen if someone just every few weeks deposits a few hundred grand cash into his bank account. Then dutifully declares the incom

Now I'm fascinated. What would happen if someone just every few weeks deposits a few hundred grand cash into his bank account. Then dutifully declares the income as the gains from illegal activities and pays his taxes. Law enforcement investigates but can't find the source of his cash... I know they could impound the money but the onus is on the law enforcement side to eventually have some evidence of a crime and the guy doesn't have any obligation to answer any questions. I'm sure there might be some laws in place for this (maybe?) but it's still a fun thought experiment.

vmception 5y ago
> Then dutifully declares the income as the gains from illegal activities and pays his taxes This part is where you want to not say they were illegal. The IRS is saying declare all income, not admit the source. So for this thought exercise, one would take the fifth on the income report, and report the income. Say whatever you need to say for the bank deposit to not scare the bank's compliance officer. You want to avoid denial of service and denial of liquidity. So its inconvenient to make a reason for the money to be frozen for some time.