Home / Saturday Email / IRS Seizes Small Store’s Bank Account. It’s Asset Forfeiture. It’s Legal.
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IRS Seizes Small Store’s Bank Account. It’s Asset Forfeiture. It’s Legal.

Written by Gary North on September 27, 2013

This man runs a small store. His insurance company insures against theft for only $10,000 per robbery. So, his daughter waited until there was $9,000. Then she deposited the money in the bank.

An IRS agent seized the money. She charged “structuring.” The IRS requires you to report cash deposits in excess of $10,000. It also prohibits “structuring” — deposits just under $10,000.

“How will I pay my workers?” he said. “I don’t care,” she replied. She handed him her card.

He wants his money back.  He has two rays of hope. First, the Institute of Justice has taken his case. Second, the Internet may give the story enough coverage to convince the IRS agent’s superior that the bad publicity isn’t worth $35,000. Otherwise, this man is out of business.

If there is not swift justice, he may be out of business, no matter what the courts do.

Watch the one-minute video. The store owner tells what happened. http://www.freep.com/videonetwork/2695563031001/Fraser-grocery-store-owner-fights-IRS

It could happen to anyone. This is America. This is what happens in America all the time. It’s called “asset forfeiture.” Do a Web search. You will find out that this is a widespread way for government agencies to raise money. The money does not go into the general fund. The agency that initially confiscates the money gets to keep it.

Continue Reading on www.freep.com

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64 thoughts on “IRS Seizes Small Store’s Bank Account. It’s Asset Forfeiture. It’s Legal.

  1. Starting in about 2000, asset forfeiture became the next big govt. rip off. Many states completely rewrote their penal code, adding countless new laws, all for the purpose of aiding and abetting asset forfeiture. You need not be in business. If you have anything worth anything and a bureaucrat realizes it, you have just become a target. Say it couldn't happen to you, you've done nothing wrong? You are breathing aren't you? You got out of bed and started your day didn't you? No telling how many federal laws you've broken already and the day just started. Wait til you've used the public streets, conducted even private business, conversed with those around you. If you have the guts, then go describe your day in detail and list your possessions to a federal prosecutor. Come on now, you're not a criminal……or are you?

  2. The time is near!

  3. Dam the IRS! And every other government agency! Time to play cowboys and IRS agents!

  4. Wow, that’s just flat out bad. I pray there are lawyers who may help.

  5. In Rome, it got so bad, that people started to kill tax collectors in mass. It actually became a war with tax collectors before Rome finally fell. WE are on the same path.

  6. This is absolutely rediculous! Didn't the IRS do enough damage to themselves by targeting conservatives and tea party people? Now they want to dig themselves into an even deeper disgrace buy not even following their own rules. None thousand dollars is not ten thousand dollars. How can someone who works for the IRS not even no simple math?

  7. I'm not sure I'm buying this as the entire story. As much as I distrust our government this one seem a step beyond what they could get away with. Of course if the courts rewards a large punishment reward it will not be the official who pays it so it is possible. I would just like to see more evidence before jumping on the outrage bandwagon. I've been fooled before so I'm not so willing to believe until I have both sides of the story.

  8. It appears the IRS has construed this case to be an effort to avoid the threshold amount established by the Bank Secrecy Act, Title 31, US Code. What gave the IRS reason to suspect the Store Owner was "structuring" is probbly at the heart of this matter. Even "suspectinng" someone of money laundering to avoid the threshhold amount is now a reportable offense. For those who would have an interest, log on to FinCen.gov and "marvel" at the very complicated web the folks at FinCen and the US Treasury have built to catch those involved, The regulations and the Act now raise eyuebrows of the Feds whenever someone reaches or even approaches the reportable aount of $10,001. It short, the Act was enacted to curtail "money laundering" but as with virtually all government efforts, growing big is to be the expected outcome, above all else!

  9. You don't get it. They don't care, period. We are living during a period of decline not only economically but morally. It's only just begun.

  10. Politicklish says:

    Wake up, Amerika USSA! This is just another example proving that politicians and their functionaries never rest and they never tire … and they're coming after YOU!


    The IRS is a CIMINAL ORGANIZATION run by the MOB BOSS which is the U.S. GOVERNMENT.

    THE IRS NEEDS TO BE SHUT DOWN!!!!!!!!!!!!!!!!

  12. bitemehardleft says:

    Good Luck with that. Lawyers are the worst criminals their are. They extort from their clients. Legal extortion with the Governments blessing

  13. the only problem with these clowns they send our local law in first they don't have the balls to go first if I believe that they have no right to be have I will defend my self

  14. The time…will come, when IRS agents are hunted down like the DOGS they ARE!

  15. It is very scarey. I used to have more assets but the new normal of America the land of less has become the reality Vis a vis America the land of plenty. Irs agents and the IRS has too much control over every aspect of our lives. Am I alone in the abject fear? You can't save or have anything . IF you dare to save for retirement there is the IRS waiting like a slobbering rabid wolf waiting to grab it. How in the world are we going to survive retirement with things like this happning evertywhere and now the IRS is in charge of our health as well. Lord save ius this OBAMANATION is beyond George Orwell
    's nighmare.

  16. It hasn't "Just" begun it is here and now. Obama has destroyed this great nation and the sick sick liberals are disgusting

  17. The gas station I go to takes three or 4 depsoits to the bank over the day so there isn't a lot of money there. The IRS seized their accounts and kept the money pending legal case. This is an outrage. AT almost $4 a gallon there has to be thousands in cash every few hours. They try and protect themsleves from robbery and the government robs them SICK

  18. And stupid Americans just keep letting this crap keep getting bigger and bigger. People just sit back and let everyone else get screwed and do nothing because it can't happen to you cause your special and live in your own little world. One problem with this thinking is if it does happen to ya then it is to late and it costs 100's of thousands to get it back and they win again cause they got some more of your money. Just be lazy and gutless and do nothing cause that is American. Reread this article again and pay attention to it not having to be just money. Did ya ever hear of "eminent domain" just for an example.

  19. We need our new American Revolution. The Liberal loons have destroyed the America we knew.

  20. Deborah, indeed it is scary?
    What can the Americans do to get out of this dragnet?

  21. You are so right, Mike. This will not stop now until there is a Civil War in this country. Everything starts at the top and the top of this food chain is a wicked, wicked creature named Obama. He sanctions everything and it is just going to get worse. No amount of money or power will ever be enough for these beasts.

  22. carlton goodson says:

    This is where we live. In the land of the free.

  23. most excellent news, I pray it starts this week.

  24. it is amafrika, land of the gay and home of the depraved.

  25. Doug Rodrigues says:

    This is no longer the land of the free. This is the land where the Bureaucratic thieves steal your money under color of regulation. There are so many regulations, how is someone supposed to know what to do at any one time? This is tyranny in action! If someone did that to me, I'd go beyond the law and take matters into my own hands with the people directly involved in stealing my money..

  26. And we are giving the same institutions even more power everyday. Even ObamaCare gives police more powers and moneys.

  27. IRS employees should be beaten and whipped. And possibly hung. They are scum. Hope u r reading this as I mean it 100%

  28. The Quadfather says:

    This has been going on for some time now. They claim that the property committed a crime. Isn't that ridiculous? Since they are not charging you with a crime, there's no due process. It's just a perverse way of getting around your rights. They do this to drug dealer suspects all the time. Since most of them are in fact guilty, there's little protest. However, others, innocents do get caught up in this. I remember writing to the editor of my local paper about this back in the '90s. I called it what it is, piracy. No property should be taken without first convicting you of a crime, and then only the property that can be linked to the crime.

  29. And, who is in control of all these organizations? The finger ALWAYS points to the "LIAR" barack hussein obama, holder and lois, "I plead the 5th" lerner.

  30. The Quadfather says:

    Eminent Domain is not the same thing. Eminent Domain is actually Constitutional law, where the government can take your property (it generally applies to real estate) for the use of the government or public. The government is required to pay you for the value of the property. It is almost always undervalued by them. You can challenge the value, but not the taking. ED has however been perverted by the SCOTUS when they allowed takings from one property owner to give to another for the purpose of enhancing tax revenue. This needs to be corrected. The taking of money by police forces under forfeiture laws may be legal, but it is unconstitutional without due process and a conviction. This "structuring" business is not right. What is exactly the amount of money that gets you hauled in for structuring? What if you ran a business that took in about $9000.00 a day and you deposited daily? Are you then structuring? If you are avoiding the $10,000,00 mark because you don't want the government knowing your business, shouldn't that be your right? What gives them the right to know even when it is over $10,000.00 as long as you report your yearly income to the IRS. What are the structuring thresholds anyway?

  31. Americans are now totally enslaved. The next step is to vote in political races at every level to get out of slavery.

  32. Post the number of the IRS agent and start a phone chain

  33. "The agency that initially confiscates the money gets to keep it." Sounds a like piracy.

  34. And people wonder why someone would fly their plane into an IRS building? Go Figure!

  35. What is really Sad is that the IRS took 35k and not just the 9k she deposited. I would sue till I bled from my Eyes. Every body envolved from the bank teller that took the money all the way to the District manager of the IRS office and beyond!!!


  37. I had the state of Pa. Use the soil conservation district do this to my business. It was a $500,000.00 shake down. This is a real situation and the state officials are nothing more then originized criminals. The worse part is you have no recourse because you don’t appeal to a court but an administrative panel that the agencies control. I have watched these agencies in three states operate in a out of control unamerican and unconstitutional fashion. I here to tell you that it didn’t just start it has been going on for twenty years.

  38. Wahoo mcdaniel says:

    Hey bar owner in Chicago head his business near the baseball stadium. Two people who are going to the baseball game stopped at his bar had a drink and made a deal to sell marijuana. The guy who owns the bar was completely unaware of it. One once the deal was done they walked outside of the bar and the man selling the marijuana, the weed, was arrested by federal officers. After they’d made that arrest they then went in and served papers on the owner of the bar, the man who sold beer and alcohol legally, but he was blithely unaware of the drug deal being done by federal officer. They seized his bar completely over $2 million of inventory and property. He was bankrupted that day and trying to get his property back was bankrupting him. By the time he finally won his case in federal court, he was bankrupted any edges sell the assets and a public auction to pay his legal debts. So even if you win a public asset forfeiture case you probably lose anyway. Welcome to the late Roman Empire.

  39. Wrightclick says:

    Hung first. The rest you can do later on your time.

  40. Who does the IRS report to? The scumbag at the top is the problem.

  41. LETS HAVE SOME FUN! FIND OUT WHO THIS AGENT IS, THEN SEND HER NOTES THAT SHE OWS THIS BUSINESS OWNER $10 THOUSAND DOLLARS WITH INTEREST! Dont sign your name and use TWITTER, FACE BOOK , YOU TUBE and snail mail if you wish! Lwts maker her sick to her stomach to see how it feels to SCREW THE HONEST PUBLIC ON A FALSE PREMISS!

  42. Reading all this, I can only shake my head. Why would you want to continue living inthe USA? Get your passport and move to a more decent place. There are 200 countries in this world.

  43. Where would you suggest to move to? Other countries are just as screwed up if not worse.

  44. Theft is theft by any other name; whether the thief is some thug entering your home or your business and forcibly taking what is yours, or some government (i.e. IRS) thug stealing from you. It is wrong and should be fully prosecuted as a crime. Unfortunately, in the case of robbery, it is still legal to defend yourself and your property, with deadly force if necessary. What is unfortunate is that the same cannot apply when the thief is the government. Also, it is unfortunate that even the average thug thief is now getting protection from those who stand up to defend themselves and what is rightfully theirs. Some country we live in today. Hopefully, next time it might be the very government officials who enabled this kind of theft who will be stolen from in this way. If I worked for the IRS, I would likely be fired shortly afterwards for doing the very same thing to government officials and top IRS bureaucrats. LOL

  45. Daniel from TN says:

    That revolution may soon occur. 34 states are needed to convene a Constitutional Convention. 32 states have now called for a convention and 3 other other states are considering it.
    IMPO, the very first thing a convention should consider is term limits for members of Congress.

  46. Daniel from TN says:

    Actually there's 216 countries. But who's counting?

  47. "None are more hopelessly enslaved, than those that believe they are Free"

    Johanne Wolfgang Von Goethe

  48. No if you deposit $9-$10,000 cash, the bank reports it to IRS. The store will have to show sales receipts to generate that kind of money in one lump sum that was deposited. This kind of deposit looks suspicious to the bank and to IRS.

  49. A law enforcment agency in the midwest was desperate for cash. A local landowner had maried a much-younger wife, so the agents supposed that there was a possibility that she smoked pot. Somehow they got a search warrant to search the property for drugs, so that if any were found, it could seize the property. When the landowner woke up in the middle of the night to find unidentified men (no badges or uniforms) breaking into his house, he shot at them. He was immediately shot to death. The good news is that they found absolutely no drugs. The bad news is that the owner is dead.

    I cannot believe that after the American Revolution, the American people allowed these sorts of laws to be passed. They were originally intended as a deterrent to crime, but actually, they encourage crimes commited by the state against the people. Sort of like gun control.

  50. It is a testimony to the fact that we have gradually become a dictatorship that you suggest that complainants not list their names. Now you know why protesters in third world countries wear masks.

  51. Yes, but you cannot get a lawyer to take the case with no money. The IRS took it all, remember. And even if you can get legal counsel, the agency uses your own taxpayer dollars to pay its own lawyers to defend themeslves. That's what's wrong with this "If you don't like it sue" approach to civil rights. If the government is not operated in good faith by individuals who are not trying to game the system, the lawsuit method does not work.

  52. The IRS is not the problem. When a dog gets out of the yard and mauls a child to death, the dog is executed, but the owner could face stiff fines, jail time, and is subject to civil liability. Congress created the IRS, and they should all be held jointly and severally liable for everything it does. Congress allows IRS agencies to fabricate their own "rules," which have the force of law. What this means is that the Congress has delibrerately handed over its legislative power to a department of the executive branch. That's why the problem exists. Without separation of powers, our freedoms are not preserved.


  54. King John of England doing crap like stealing peoples money was the whole reason the nobles of England drew up The Magna Carta.

  55. King John of England doing crap like stealing peoples money was the whole reason the nobles of England drew up The Magna Carta. We need to ABOLISH THE IRS and go back to funding the federal government only for our protection/ defense / security.

  56. Rattlerjake says:

    Yeah, but we have a bigger fight. Rome didn't have the EPA, DHS, FEMA, FDA, USDA, etc. Of course the citizens weren't armed like we are either. Let the carnage begin! I have hundreds of little jackass decals and red X's, my truck will look like a WWI fighter pilots plane, with all of the confirmed kills (LOL)!

  57. Laws and courts are no help .. They made this evil. If you don’t realiate . Blacks don’t obey them. You are doing nothing but talk. If our fore fathers was as you there would be no America. Act or surrendered.

  58. Sounds just a little bit unconstitutional to me. Seems like the Fourth Amendment (and maybe others) are being violated. They can not Constitutionally confiscate anything, even a piece of paper, unless they have a warrant from a judge. And, to get that warrant they have to show "just cause," in other words evidence that they have reason to think an actual crime is being committed. Just taking it is robbery under the pretense that a law has been broken. And they should be prosecuted for violating the people's rights to their property.
    And whoever wrote the law should be taken behind the barn and whupped real good, then required to take about four college semesters of Constitutional law before writing any more laws..And then required to spend a few hours a week teaching the rest of his fellow lawmakers about the fine points of the Constitution.

  59. Joyce from Loris says:

    Unfortunately, the government has turned every utility, retail store, grocery store, etc. into tax collectors for them. You can't buy anything without paying taxes on it, anywhere. They tax every dime you make and a every dime you spend.

  60. Just hearing that 32 of the required states have called for a convention with 3 more considering. At 34 the states should hold a convention to consider modifications such as term limits on Congress. Praise God a slight hope for action

  61. "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."

    Is the 4th Amendment still in effect or has Obama suspended that as well?

  62. Denise Warner says:

    Structuring explained:

    Apparently money launderers will split large quantities of money into smaller deposits of just under $10,000 to avoid detection. The banks are told to look for multiple deposits of just under $10,000. Did this restaurant owner make only ONE $9,000 deposit? Should not have raised flags.

  63. If you are not a criminal the liberals will make a law to make you one !!!!

  64. Lorenzo Oyle says:

    Please don't demean dogs by comparing IRS goons to our canine friends! Dogs are to aid humans in hunting, not to be hunted in and of themselves. A man is indeed fortunate to have a good wife, a good gun, and a good dog, not necessarily in that order. As far as IRS agents? Study history or listen to old family stories about Federal "Revenours" who went into the mountains generations ago to try and catch moonshiners. And before that, the red-coat British general and troops who did not leave the mountain top alive after "going after" American "rebels" who lived in the mountains. The Mountain Spirit of America lives!!!