The IRS Closed This Grandmother’s Bank Account and Seized Nearly $33,000 From Her

From The Blaze.com (Oct. 29):

The IRS closed her bank account and seized nearly $33,000 of her money — but wait until you hear what her “crime” was.

Grandmother and small business owner Carole Hinders said the seizure happened one day in May 2013, and it took her completely by surprise because the money seized was the fruit of her honest labor.

“How can I be committing a crime by depositing money that I worked for, and deposited in my own bank account?” Hinders asked. “In 30 years of banking with the same bank, no one ever mentioned that I was making my deposits wrong.”

It all relates to what the IRS calls “structuring,” when someone makes withdrawals or deposits strategically under the amount of $10,000 to avoid having their bank file a currency transaction report with the Feds.

But in cases like Hinders’, small business owners aren’t “structuring” to avoid paperwork or get away with illicit uses of money — they just make frequent deposits under $10,000 because their businesses aren’t bringing in more money. [read more]

This is a good reason why the tax law should really be examined. And if a rule is confusing or unfair—eliminate it! There are so many rules who knows if you violated one or not. It’s ridiculous. As Chief Justice John Marshall once said: The power to tax is the power to destroy. Just ask any conservative group. You want to talk about a war, this is a war on the small business elderly person. Or small business woman.

One last thing to think about. Under tax law, the taxpayer is assumed guilty unless proven innocent. And the taxpayer is the one who has to prove his/her innocent. That’s why people need tax lawyers and tax accountants.