The War On Cash Continues

Experts agree that the case that Eliot Spitzer violated the Mann Act, a federal law that prohibits transporting women across state lines for sex, is weak, and prostitution is a petty crime under state law. But, he may not be off the hook. He could face charges for the federal crime of "smurfing" which means breaking up cash transactions over $10,000 which must be reported to the federal government, into smaller transactions designed to evade the cash transaction reporting law.

Meanwhile, federal tax law will now require in audits documentation of all charitable contributions made in cash (as opposed to a check, credit card or electronic funds transfer) with a written acknowledgement from the charity. Gifts of currency to your church or a Salvation Army bucket, for example, are no longer tax deductible without an acknowledgement. The days of tax deductions for big anonymous gifts, like gold coins in Slavation Army buckets, are gone.