FinCEN (Financial Crimes Enforcement Network) and the IRS (Internal Revenue Service) have initiated communication with financial institutions, highlighting a worrisome uptick in state and federal payroll tax evasion and workers’ compensation issues within the construction industry. These agencies emphasize the crucial need for financial institutions to stay vigilant as these fraudulent activities often involve the utilization of banks and check-cashing services.
In addressing the financial sector, FinCEN and the IRS underscore the importance of institutions being proactive in recognizing and reporting suspicious activities. Financial entities are reminded of their obligation to file suspicious activity reports promptly if they have reason to suspect that their services are being exploited to facilitate criminal endeavors related to payroll tax evasion and workers’ compensation in the construction sector. By raising awareness and fostering collaboration, authorities aim to curb illicit activities and uphold the integrity of the financial system.
Make sure your payroll is done correctly. If you need help with your payroll, call us today at Gleason Tax Advisory, 716-720-5339.