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Showing Original Post only (View all)IRS Seizes Over $100,000 From Innocent Small Business Owner, Despite Promise To End Raids [View all]
Source: Forbes
Wielding a banking law intended to thwart drug trafficking and money laundering, the IRS has a new target in its sights: a rural convenience store that sells catfish sandwiches.
Lyndon McLellan lost over $107,000 in an IRS raid after the agency seized the bank account belonging to his small business, L&M Convenience Mart in Fairmont, North Carolina. It took me 13 years to save that much money and it took fewer than 13 seconds for the government to take it away, he said.
For over a decade, Lyndon has run his mart, an unassuming place where locals stock up on soft drinks and cigarettes. But last year, the IRS wiped out the shops bank account using the Bank Secrecy Act. Under this law, banks must report all cash transactions over $10,000. Federal law also prohibits structuring deposits in amounts under $10,000 to skirt the reporting requirement.
But making frequent cash deposits under $10,000 is only a crime if someone deliberately intends to evade filing those reports. Lyndon had no such intention. According to his niece, who usually made deposits, a bank teller told her that depositing less than $10,000 would avoid burdensome paperwork. Moreover, forfeiting Lyndons cash would violate his constitutional right to due process and the Eighth Amendments protection against excessive fines.
Read more: http://www.forbes.com/sites/instituteforjustice/2015/05/05/irs-seizes-over-100000-from-innocent-small-business-owner-despite-promise-to-end-raids/