…Explain to me why someone might want his BIL to buy gold for him because "he can't or shouldn't" and it is something other than smurfing?
Too many of us think this way and IMHO this is the main reason we seem to comfortably live in the police state. For decades I have known that I am a free-range slave, but at least 20 years ago fences felt faraway and I could fool myself in feeling like a free man. Today the fences are so close that I no longer can fool myself. Maybe in a few years you too will start feeling like a barn animal and then will be willing to stand up. Situations like the one faced by OP is probably the easiest way to regain some self-respect and assert your human rights.
For now - It is legal to buy gold; it is legal to sell gold; and it is legal to remain silent. That is ALL that OP needs to know. OP does NOT need to answer ANY questions or come up with ANY explanations for ANYTHING. If wrongfully arrested – sue! Many naively think that appeasing “authority” by answering questions or helping investigation is a good thing and will get them off the hook. I treat agents of all kind as I would any human being who is a stranger. If he/she is nice and polite, I too will be civil. If the stranger asks personal questions, I end the conversation. I usually do not assist strangers in looking for cats unless I find such help appropriate. I equally do not assist agents in their investigations. Unlike many YTs and childish “activists”, I do not seek confrontation or try to insult agents, but I also do not piss myself in their presence. In all honesty, so far my exposure has only been with traffic cops, suspicionless-checkpoints (both immigration near Canada and drunk net) and border crossings. So I have not yet had to deal with IRS or other alphabet soup, but I hope my testicular fortitude would not vanish just because the color of the costume. Besides ever tried to tell the border crossing guard that what you do for work is personal information and is not relevant to my journey home? Yeah, it ain’t easy. Since at the border we are almost completely stripped of our dignity/human rights – we nearly completely at agent’s mercy. For OP to tell an IRS goon to go pound sand would be a walk in a park in comparison.
…As to why the BIL wont do this himself??? That's another story...
No, why is the key question!!! However, OP is not obligated to ask it and therefore OP would be in his rights to tell any gov agent to go pound sand.
The way is important because it is “illegal” (or properly phrased – against IMF regulations, which are enforced by our treasury and IRS) to structure currency transactions to avoid $10K reporting limit. So if BIL comes in every week (for a few months) and buys in cash $5K worth of gold each time – he could be accused of structuring. BIL can also be accused of structuring if he uses smurfs such as the OP.
Either way it’s a victimless crime and another infringement on common law. Unless BIL bought a few tons of gold, it will be imposable to prove anything. However, we are not talking about BIL, but OP. As long as OP does not know he is assisting in structuring he did NOTHING wrong. If anyone asks – he simply needs to keep his mouth shut. If wrongfully arrested – sue!