Treasury Enforcement Agent Exam Criminal Law & Federal Statutes 3

Question 1

Under 31 U.S.C. § 5316, who is required to file a FinCEN Form 105 (Currency and Monetary Instruments Report)?

Accepted Answer

Any person transporting or receiving more than $10,000 in currency or monetary instruments into or out of the United States

Answer

Any person transporting more than $5,000 domestically

Answer

Financial institutions receiving international wire transfers over $50,000

Answer

Airlines and shipping companies transporting cash cargo internationally

Question 2

What is the primary legal distinction between a grand jury subpoena and an IRS administrative summons in a tax investigation?

Accepted Answer

Grand jury subpoenas are used in criminal proceedings; IRS summonses under § 7602 can be used in civil audits and criminal investigations

Answer

Grand jury subpoenas require prior court approval; IRS summonses do not require a court order to issue

Answer

IRS summonses cannot compel testimony; grand jury subpoenas always can

Answer

Grand jury subpoenas apply only to financial institutions, not individual taxpayers

Question 3

Under the Fourth Amendment, what must Treasury enforcement agents generally obtain before searching a suspect's private premises?

Accepted Answer

A warrant supported by probable cause, issued by a neutral magistrate

Answer

A civil complaint filed in federal district court

Answer

Completion of an administrative summons process first

Answer

Written approval from the Secretary of the Treasury

Question 4

Under 26 U.S.C. § 7203, willful failure to file a federal tax return is classified as what type of offense?

Accepted Answer

A federal misdemeanor carrying up to 1 year imprisonment

Answer

A civil infraction carrying only monetary penalties

Answer

A federal felony carrying up to 3 years imprisonment

Answer

An administrative violation handled solely by IRS Appeals

Question 5

The Racketeer Influenced and Corrupt Organizations (RICO) Act is codified at which location in the United States Code?

Accepted Answer

18 U.S.C. §§ 1961–1968

Answer

18 U.S.C. §§ 1341–1347 (mail and wire fraud)

Answer

31 U.S.C. §§ 5311–5336 (Bank Secrecy Act)

Answer

26 U.S.C. §§ 7201–7217 (tax crimes)

Question 6

What is the 'net worth method' used by IRS Criminal Investigation special agents?

Accepted Answer

An indirect proof technique that reconstructs unreported income by comparing a taxpayer's increase in net worth to reported income

Answer

A method for calculating a corporation's eligibility for tax credits and deductions

Answer

A formula for determining international transfer pricing in related-party transactions

Answer

A method for computing estate tax liability based on asset appraisals

Question 7

Under the Sixth Amendment, at what point does a suspect's right to counsel formally attach in a federal criminal tax investigation?

Accepted Answer

At the initiation of formal judicial proceedings, such as indictment or arraignment

Answer

When an IRS special agent first questions the suspect

Answer

When the suspect becomes a named 'subject' in an investigation

Answer

Whenever Miranda warnings are administered