Criminal Law & Federal Statutes Flashcards

Under 26 U.S.C. § 7201, what is the maximum prison sentence for criminal tax evasion?

Answer: 5 years

26 U.S.C. § 7201 provides a maximum of 5 years imprisonment per count for the federal felony of tax evasion.

The Bank Secrecy Act requires financial institutions to file a Currency Transaction Report (CTR) for cash transactions exceeding what threshold?

Answer: $10,000

The Bank Secrecy Act (31 U.S.C. § 5313) mandates a CTR for cash transactions exceeding $10,000 in a single business day.

Under 31 U.S.C. § 5324, the crime of 'structuring' is best defined as which of the following?

Answer: Deliberately breaking up cash transactions to evade Currency Transaction Report requirements

Structuring involves intentionally breaking up cash transactions to keep them below the $10,000 CTR threshold, which is itself a federal crime regardless of whether the underlying funds are legal.

Which mental state element is essential to prove criminal tax evasion under federal law?

Answer: Willfulness

Criminal tax evasion requires proof of 'willfulness,' meaning the defendant intentionally violated a known legal duty to pay taxes.

Under 18 U.S.C. § 1956, money laundering charges require that the transaction involve proceeds from what category of crimes?

Answer: Specified Unlawful Activities (SUA) as defined in the statute

18 U.S.C. § 1956 applies only to transactions involving proceeds of 'Specified Unlawful Activities,' a defined list of predicate offenses that includes drug trafficking, fraud, and other serious crimes.

What is the statute of limitations for criminal tax evasion under 26 U.S.C. § 7201?

Answer: 6 years

The statute of limitations for criminal tax evasion is 6 years from the date the offense was committed, longer than the standard 5-year period for most federal felonies.

What is the key legal distinction between 'tax avoidance' and 'tax evasion'?

Answer: Tax avoidance uses legal means to reduce tax liability; tax evasion uses illegal means

Tax avoidance refers to legally minimizing one's tax burden through lawful deductions and planning, while tax evasion is the illegal underpayment or concealment of taxes owed.