What is the penalty for money laundering?

Federal money laundering under 18 U.S.C. §§ 1956-1957 carries up to 20 years in prison, fines up to $500,000 or twice the amount of the transaction, and asset forfeiture.

Do I need a specialized attorney for tax crimes?

Absolutely. Tax crime defense requires deep knowledge of both criminal law and the Internal Revenue Code. A general criminal defense attorney may not understand the tax issues at the heart of your case.

What's the difference between structuring and money laundering?

Structuring (31 USC § 5324) is breaking cash transactions into amounts under $10,000 to avoid CTR reporting. Money laundering (18 USC §§ 1956, 1957) is concealing the source of funds derived from a specified unlawful activity. They often charge together but the elements differ — and the defenses differ.

Can I be charged with money laundering for a tax case?

Yes. Tax evasion proceeds can be the predicate for § 1956/1957 charges, and § 7206 false return prosecutions are frequently paired with money laundering counts. The combined exposure is much higher than tax alone — and the forfeiture exposure is severe.

What happens to seized assets in a money laundering case?

The government will move to forfeit assets traceable to the alleged offense, often through parallel civil forfeiture. We defend on the criminal side and pursue release of property on the civil side simultaneously.

What is the penalty for money laundering?

Federal money laundering under 18 U.S.C. §§ 1956-1957 carries up to 20 years in prison, fines up to $500,000 or twice the amount of the transaction, and asset forfeiture.

Do I need a specialized attorney for tax crimes?

Absolutely. Tax crime defense requires deep knowledge of both criminal law and the Internal Revenue Code. A general criminal defense attorney may not understand the tax issues at the heart of your case.

What's the difference between structuring and money laundering?

Structuring (31 USC § 5324) is breaking cash transactions into amounts under $10,000 to avoid CTR reporting. Money laundering (18 USC §§ 1956, 1957) is concealing the source of funds derived from a specified unlawful activity. They often charge together but the elements differ — and the defenses differ.

Can I be charged with money laundering for a tax case?

Yes. Tax evasion proceeds can be the predicate for § 1956/1957 charges, and § 7206 false return prosecutions are frequently paired with money laundering counts. The combined exposure is much higher than tax alone — and the forfeiture exposure is severe.

What happens to seized assets in a money laundering case?

The government will move to forfeit assets traceable to the alleged offense, often through parallel civil forfeiture. We defend on the criminal side and pursue release of property on the civil side simultaneously.

You Are Not The First. You Will Not Be The Last.

Money Laundering Defense

Defense against federal money laundering charges under 18 U.S.C. §§ 1956-1957.

Federal Statute18 U.S.C. §§ 1956-1957

Max Prison20 years

Max Fine$500,000 or 2x amount

Key DefenseLack of intent/knowledge

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Talk To A Real Tax Attorney

One honest conversation. You'll hang up knowing exactly what the IRS can — and can't — do to you, and how we'll stop them.

Call (877) 829-5267

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Legally reviewed byGregory McCauley Jr., Esq.

Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court

Last reviewedDecember 22, 2025

What This Actually Is — And How We End It

The Truth About Money Laundering Defense — And What To Do Right Now

Federal money laundering charges under 18 U.S.C. §§ 1956-1957 carry penalties of up to 20 years in prison and fines up to $500,000 or twice the amount laundered. These are among the most serious charges the federal government can bring.

McCauley Law Offices provides aggressive defense against money laundering allegations, challenging the government's evidence of knowledge, intent, and the underlying "specified unlawful activity."

Money laundering charges are often added to other tax crimes to increase sentencing leverage. Each transaction can be charged as a separate count, meaning potential sentences can stack quickly. Early intervention by experienced counsel is critical.

Understanding Money Laundering Charges

Federal money laundering law covers two main types of conduct:

§ 1956 — Transaction Laundering: Conducting a financial transaction with proceeds of "specified unlawful activity" with intent to promote the activity, evade taxes, or conceal the source of funds. Up to 20 years imprisonment.
§ 1957 — Monetary Transaction in Criminally Derived Property: Engaging in a monetary transaction over $10,000 that involves criminally derived property. Up to 10 years imprisonment.

Common Defense Strategies

Lack of knowledge: You didn't know the funds were derived from unlawful activity
No intent: The transaction was for legitimate business purposes, not to conceal or promote illegal activity
No specified unlawful activity: The underlying crime the government alleges doesn't qualify
Entrapment: Government agents induced you to engage in conduct you wouldn't have otherwise
Constitutional challenges: Illegal search and seizure, violation of due process rights

In many tax-related money laundering cases, the government overcharges — treating routine business transactions as "laundering." We challenge the government's characterization aggressively, often getting laundering charges reduced to straightforward tax violations with far lower penalties.

You Are Not Alone

People Just Like You Have Sat In This Exact Chair

They were terrified. They were ashamed. They thought they were the only one. Then they made one phone call — and everything changed.

Business Owner Accused of Structuring

A business owner was charged with structuring cash deposits to avoid reporting requirements. We demonstrated the deposits were legitimate business activity, and all charges were dismissed.

Structuring Charge Avoided Through Pre-Indictment Advocacy

A Bucks County business owner deposited cash receipts in amounts just under $10,000. We engaged early with the AUSA, demonstrated lack of unlawful intent, and the matter closed civilly without indictment.

Asset Forfeiture Defeated

Government sought forfeiture of $1.2M from a client's accounts as proceeds of alleged tax fraud. We traced legitimate sources, secured release of $880,000, and litigated the remainder to a favorable settlement.

Every Day You Wait, The IRS Wins A Little More.

Penalties stack. Interest compounds. Legal options quietly disappear. One free call ends the spiral.

Call (877) 829-5267

From Panic To Peace Of Mind

Exactly How We Take This Off Your Shoulders

The hardest step is the first one. Everything after that, we carry for you. No surprises. No runaround. No lectures.

1
Confidential case assessment
We review the charges, evidence, and circumstances under attorney-client privilege to develop an initial defense strategy.
2
Investigation & evidence review
We analyze financial records, bank statements, transaction histories, and government evidence to identify weaknesses in the prosecution's case.
3
Pre-trial motions & negotiation
We file motions to suppress evidence, challenge jurisdiction, and negotiate with prosecutors for reduced charges when appropriate.
4
Trial preparation or plea resolution
Whether going to trial or negotiating a plea, we prepare a comprehensive defense strategy tailored to achieve the best possible outcome.
5
Sentencing advocacy
If convicted, we present mitigating factors and alternative sentencing arguments to minimize penalties.

Proven Results

This Isn't Theory — It's What We Do Every Week

Criminal Tax Defense — Tax Evasion Charges

Chadds Ford business owner facing IRC § 7201 tax evasion charges. Our defense team achieved a plea to a lesser offense with no prison time.

OwedCriminal charges

ResolvedNo prison

SavedCharges reduced

Criminal Tax Defense — False Return Charges

Delaware County professional facing IRC § 7206(1) charges. Pre-indictment representation resulted in declination by U.S. Attorney's Office.

OwedFelony exposure

ResolvedNo charges filed

SavedCase declined pre-indictment

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Trusted by Thousands of Taxpayers

Real results from real clients

"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."

Robert M.

"After years of IRS letters and threats, Gregory and his team got my penalties completely removed. They were professional, responsive, and genuinely cared about my case."

Sandra L.

"They stopped a wage garnishment within 48 hours and ultimately settled my case for pennies on the dollar. I can't recommend them enough."

Michael T.

"I hadn't filed taxes in 5 years and was terrified. McCauley Law handled everything — filed all my returns, negotiated with the IRS, and got my penalties reduced by 80%."

Jennifer K.

"As a small business owner, I was facing $250,000 in payroll tax debt. Their team negotiated an Offer in Compromise that saved my business."

David R.

"My ex-husband's tax fraud left me liable for $135,000. McCauley Law got full innocent spouse relief — I owe nothing. They gave me my life back."

Maria G.

"Facing criminal tax charges was the worst experience of my life. Gregory McCauley's defense was brilliant — charges reduced, no prison time. Forever grateful."

Thomas W.

"The IRS had a lien on my home and was threatening seizure. McCauley Law negotiated a manageable payment plan and got the lien subordinated so I could refinance."

Patricia H.

"Professional, knowledgeable, and responsive. They explained every step of the process and kept me informed throughout. Resolved my $92,000 tax debt for $8,500."

James C.