Congress passed the Tax Reform Act of 1984 and the Anti-Drug Abuse Act of 1988. These Acts require you to report certain cash payments of over $10,000.

Often smugglers and drug dealers use large cash payments to "launder" money from illegal activities. Laundering means converting "dirty" or illegally-gained money to "clean" money.

The government can often trace this laundered money through the payments you report. Your compliance with the law provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities.

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