HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » IRS Seizes Over $100,000 ...

Tue May 5, 2015, 02:44 PM

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 shop’s 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 Lyndon’s cash would violate his constitutional right to due process and the Eighth Amendment’s 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/

28 replies, 4815 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 28 replies Author Time Post
Reply IRS Seizes Over $100,000 From Innocent Small Business Owner, Despite Promise To End Raids [View all]
azurnoir May 2015 OP
jtuck004 May 2015 #1
appal_jack May 2015 #4
Kelvin Mace May 2015 #6
jtuck004 May 2015 #7
Kelvin Mace May 2015 #8
greyl May 2015 #14
Kelvin Mace May 2015 #16
snooper2 May 2015 #20
A Simple Game May 2015 #10
jtuck004 May 2015 #12
Dr. Strange May 2015 #17
iscooterliberally May 2015 #2
jamzrockz May 2015 #21
iscooterliberally May 2015 #23
CanonRay May 2015 #3
LiberalArkie May 2015 #5
jmowreader May 2015 #9
HenryWallace May 2015 #11
muriel_volestrangler May 2015 #13
HenryWallace May 2015 #19
Jesus Malverde May 2015 #26
billhicks76 May 2015 #15
HenryWallace May 2015 #18
billhicks76 May 2015 #24
HenryWallace May 2015 #25
Jesus Malverde May 2015 #27
cbdo2007 May 2015 #22
Jesus Malverde May 2015 #28