IRS empties shop owner's bank account, for no reason.

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IRS empties shop owner's bank account, for no reason.

Post  Anti Federalist on Wed Sep 25, 2013 10:51 pm

LOL @ the "I've got nothing to hide" crowd.


Feds Steal $35K From Small Grocer's Bank Account Despite Finding "No Violations" To Justify the Grab

J.D. Tuccille|Sep. 25, 2013 1:29 pm

http://reason.com/blog/2013/09/25/feds-steal-35k-from-small-grocers-bank-a

Schott's Market, in Fraser, Michigan, was robbed in January of this year. Unfortunately for Terry Dehko and his daughter, Sandy, who own the place, the thieves are government agents in the emply of the Internal Revenue Service. The IRS doesn't even allege that the Dehkos committed a crime to justify cleaning out their bamk account using civil asset forfeiture—they even sent the Dehknos a letter clarifying that “no violations [of banking laws] were identified.” So, why the mugging? The feds just don't like the way the grocers have been depositing money in their bank account. Really.

According to the Institute for Justice, which represents the Dehkos, the problem is that the Dehkos run a cash-heavy business, and don't like to keep lots of lucre on hand. So they make frequent deposits.

Like most grocery store owners, Terry and Sandy receive cash every day from their customers. Their commonsense practice has always been to avoid letting too much cash accumulate in their store. Moreover, their insurance policy specifically limits coverage for theft or other loss of cash to $10,000—a common provision for small-business policies.

Over the past several years, however, the government has been collecting vast amounts of private information about Americans, including entrepreneurs like Terry and Sandy that deal in cash. In 2001, the Patriot Act amended federal law to make it easier for the government to seize money and other private property through civil forfeiture. Federal law requires banks to report cash transactions above $10,000, and it is illegal to “structure” cash deposits for the purpose of avoiding this requirement.

So you have to report deposits of over $10,000, but keeping deposits under $10,000 is considered suspicious, even if your insurance company insists on the practice. Get it?

Under the circumstances, IRS agents dropped by for a friendly chat in 2010, and then again in 2012. After the second visit, the feds sent the Dehkos a letter saying that “no violations [of banking laws] were identified.”

And then, nine months later, the IRS emptied the Dehkos' bank acount of $35,000 without warning.

In the Dehkos' case, the IRS used civil asset forfeiture, which requires no criminal action or proof of guilt on the part of a property owner to seize that property—technically, it's a legal action against the property itself. Not surprisingly, it's a hugely lucrative practice for government agencies and a hugely controversial one for everybody else. Last year, Pennsylvania Judge Dan Pellegrini called the practice “state-sanctioned theft.”

Shelby County, Texas, was forced to return money and property that its officers essentially stole from motorists just passing through. Amidst much screaming from mugged constituents, Washington, D.C.'s city council is considering reforming (thought not abandoning) the practice. Some Tennessee lawmakers want to dump it altogether.

But the use of asset forfeiture, both civil and criminal, soared at the federal level under the current administration, growing from $500 million in 2003, to $1.8 billion in 2011.

The Dehkos have been charged with no crime, and still await a chance to ask a judge to force the IRS to return the money.
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Re: IRS empties shop owner's bank account, for no reason.

Post  News Hawk on Thu Sep 26, 2013 3:05 am

The IRS sure is smart nowadays.

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Tells? ...or Sells...?

Post  News Hawk on Thu Sep 26, 2013 3:58 am

Anti Federalist wrote:"...The Dehkos have been charged with no crime, and still await a chance to ask a judge to force the IRS to return the money..."
So NSA tells the IRS your personal information, and ACORN, the Black Panthers, Crips & Bloods, OFA, SEIU, La Raza knows of it.

What could go wrong?

scratch
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Re: IRS empties shop owner's bank account, for no reason.

Post  WHL on Thu Sep 26, 2013 7:30 am

No surprise there, Anti. The gov. federal or state can find something to fine you for. They can say the don't like the "way you are doing it", not that you are doing anything wrong. They can also send you a letter saying you made a mistake report payroll and fine you big money. It is then up to YOU to prove that they are wrong, that THEY are the ones who made the mistake. And even when the fine is finally dropped because they realize you are right, it is one heck of a lot of work for you. I know, it has happened to me 3 times. It might be nice if they sent you a nice friendly letter explaining the situation first, without the fine, but no, they go right ahead and say you are wrong and here is the fine.
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Re: IRS empties shop owner's bank account, for no reason.

Post  Anti Federalist on Thu Sep 26, 2013 8:01 am

But you have nothing to hide, right....right?

WHL wrote:No surprise there, Anti.  The gov. federal or state can find something to fine you for.  They can say the don't like the "way you are doing it", not that you are doing anything wrong.  They can also send you a letter saying you made a mistake report payroll and fine you big money.  It is then up to YOU to prove that they are wrong, that THEY are the ones who made the mistake.  And even when the fine is finally dropped because they realize you are right, it is one heck of a lot of work for you.  I know, it has happened to me 3 times.  It might be nice if they sent you a nice friendly letter explaining the situation first, without the fine, but no, they go right ahead and say you are wrong and here is the fine.
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Re: IRS empties shop owner's bank account, for no reason.

Post  Anti Federalist on Thu Sep 26, 2013 8:02 am

Yeah, no kidding.

"Go ahead, watch me, I have nothing to hide."

LOL

News Hawk wrote:
Anti Federalist wrote:"...The Dehkos have been charged with no crime, and still await a chance to ask a judge to force the IRS to return the money..."
So NSA tells the IRS your personal information, and ACORN, the Black Panthers, Crips & Bloods, OFA, SEIU, La Raza knows of it.

What could go wrong?

scratch
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Re: IRS empties shop owner's bank account, for no reason.

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