Treasury Enforcement Agent Exam Criminal Law & Federal Statutes

Question 1

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

Accepted Answer

5 years

Answer

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

Question 2

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

Accepted Answer

$10,000

Answer

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

Question 3

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

Accepted Answer

Deliberately breaking up cash transactions to evade Currency Transaction Report requirements

Answer

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.

Question 4

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

Accepted Answer

Willfulness

Answer

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

Question 5

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

Accepted Answer

Specified Unlawful Activities (SUA) as defined in the statute

Answer

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.

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Criminal Law & Federal Statutes