[kitkat]

>> so the IRS accused him of bundling.>>

Would you please be good enough to explain what bundling is to me?

[jonno]

IIRC - Banks are required to report cash deposits of more than x amount.

The idea is to catch those who illegally run a cash business (ostensibly drug dealers, etc.).

The ‘bundle’ then occurs when someone has (e.g.) $18K to deposit; but to avoid this large deposit being reported, they will it into smaller individual bundles, each of which can then be deposited without triggering the report.

[wafflehouse]

Would you please be good enough to explain what bundling is to me?

it is actually called structuring

http://en.wikipedia.org/wiki/Structuring

[USNBandit]

Others have explained structuring or bundling to you. In this case the grocery store was bringing cash which totaled between $7500 and $9500 a day, which they would then deposit on a daily basis, falling below the reporting guidelines for the bank. Intentionally making deposits below $10k is illegal, but we can we really blame a business owner for not making at least $10k per day in cash? The IRS lets one of their agents freeze his account without any speedy recourse so he is out $35k until he can get it back.

Not all cases are as bogus as this. Let's say a rich fellow is bored with his wife and wants to procure some company. We won't use real names, so let's call our rich guy Elliot Spitzer. Now Elliot Sptizer (not his real name) wants to buy a $15,000 prostitute so to avoid the banking reporting requirements he makes two payments to the procurer of $9000 and $6000. Despite the fact that is illegally done for purely criminal intent, and that he also violates the long standing Mann Act by procuring said prostitute across state lines, our hypothetical Mr. Spitzer is not prosecuted. Why? Because he is a high ranking democrat and the (democrat) prosecutor doesn't feel prosecuting the sitting governor of the hypothetical state of "New York" is in the interest of (democrat) justice.