Trump Signs New Law to Protect Innocent Small Business Owners From IRS Seizures
12th July 2019
Under the Bank Secrecy Act of 1970, banks must report any cash transactions greater than $10,000. But if someone frequently deposits or withdraws their cash in amounts under $10,000, the IRS could seize it for “structuring.” Even though their money was earned legitimately and despite the fact that they were never charged with a crime, in 2012, the IRS seized nearly $63,000 from Randy and more than $446,000 from Jeff. It took years of litigation and high-profile coverage before they won their money back.
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According to a 2017 report by the Treasury Inspector General for Tax Administration, the IRS “enforced structuring laws primarily against legal source funds and compromised the rights of some individuals and businesses.” Out of a sample 278 structuring cases, in 91% of those investigations, TIGTA “did not find evidence that the structured funds came from an illegal source or involved any other illegal activity.”
Draining the swamp one bucket at a time.