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Wednesday, October 28, 2015

IRS Uses Civil Forfeiture to Seize Millions of Dollars from Americans Who Haven’t Been Charged with a Crime

http://www.allgov.com/news/top-stories/irs-seizes-money-and-property-without-criminal-charges-150205?news=855583

The Internal Revenue Service (IRS) uses civil forfeiture to seize millions of dollars from Americans who haven’t been charged with a crime, according to the group Injustice for Justice.
The libertarian, civil liberties, public interest law firm says in a new report (pdf) that the IRS seized more than $242 million from 2,500 individuals and businesses from 2005 to 2012. The agency was able to take away such vast sums because of “lax civil forfeiture standards” that have permitted the IRS to “seize first and ask questions later.” As a result, people have had their bank accounts drained without the IRS putting any effort into investigating the situation. Property owners are then forced into a difficult legal battle to reclaim their money.
Many of the seizures come because the IRS suspects someone is “structuring” bank transactions in order to avoid a $10,000 limit over which a transaction must be reported to the IRS. Structuring is also illegal and the IRS has the power to use civil forfeiture to seize assets it believes are involved in such a scheme.

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