IRS Efforts to Track Down Unregistered MSBs Dead Ends 35 Percent of Time: Report

By Matt Squire

The Internal Revenue Service has achieved mixed results in its efforts to root out potential unregistered money services businesses, with over a third of all cases leading to dead ends, according to a government report released Thursday. The IRS, which examines money services businesses (MSBs) for Bank Secrecy Act compliance, started investigations on 1,059 potentially unregistered companies between August and December 2007, according to the report by the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN). Of those investigations, the agency was unable to contact 371, or 35 percent, of the MSBs, with 47 of the queries returned as undeliverable,...