The IRS Seized $107,000 from a North Carolina man’s bank account, and you might be next!

This story is about a man named McLellan, but it applies to all of us! The man, Mr. McLellan, was targeted by the IRS for his money.

Mr. McLellan’s parents owned a general store and grill, a business McLellan began helping out in at age 9.  McLellan purchased his own store in 15 years ago in the heart of North Carolina, naming it L&M Convenience Mart. It began as just a convenience store and gas station, and since its opening the store has expanded it to include a restaurant.

What Mr. McLellan didn’t know, was that the federal government has become so powerful that it could come in and take away his private property as if they owned it; personal property what he’d worked hard for.

In July of 2014, Mr. McLellan received a phone call from one of his employees summoning him to L&M as more than a dozen federal agents from North Carolina’s Alcohol and Law Enforcement, the local police department and the Federal Bureau of Investigation had flooded into his store, and they were asking for him!

When Mr. McLellan arrived at the store the federal agents asked him if he knew of the term “structuring.”
Mr. McLellan had no idea.

The agents then showed Mr. McLellan that two deposits into his account were made within a 24-hour period totaling $11,400.

The agents said he had a consistent history of cash deposits of less than $10,000, and except for the $11,400 deposit, was illegal. They then told Mr. McLellen the Internal Revenue Service had seized all of the money in L&M’s bank account: A total of $107,702.66.

“‘Are you telling me you took my money?’” McLellan recalled asking the federal agents. ” I can’t believe that y’all guys can walk in here and tell me y’all took every bit of my money out of the bank.”

The agents had been to the bank where Mr. McLellan had his account hours earlier and emptied his account.

Mr. McLellan didn’t know was that the federal government could come in and take away what he’d worked so hard for without notice!

According to the bureaucrats at the IRS Mr. McLellan committed “structuring” violations when making cash deposits of less than $10,000. Mr. McLellan’s money was seized solely because she had deposited less than $10,000 at a time, which they viewed as an attempt to avoid triggering a required government report.

Now here is the “Catch 22.” The bank teller had previously advised Mr. McLellan to make deposits of less than that the $10,000 amount (because deposits totaling more than $10,000, would cause the bank to file additional paperwork!
Structuring laws were put in place to catch drug trafficking and money laundering, but more and more innocent Americans are being targeted using these “structuring violations.”

For unknowingly committing a “structuring violation”, the government seized all of Mr. McLellan’s money (private property).

By using a section of civil asset forfeiture laws that regulates cash deposits, the feds can take anyone’s money by just suggesting that it was acquired illegally.

Just to let you know, civil asset forfeiture is a procedure that allows law enforcement to seize property if it’s suspected of being related to a crime. The government can take the money without ever filing a criminal complaint, and the rightful owners are left to prove they are innocent. The practice of civil forfeiture without due process began decades ago. However, law enforcement agencies across this nation have been using civil asset forfeiture to seize private property, including money, for their own profit (just like the IRS has been doing since the 16th Amendment was ratified in 1913).
Between 2005 and 2012, the IRS seized $242 million for structuring violations, and since seizures executed because of structuring violations have increased dramatically. In 2005, the IRS made just 114 structuring seizures. By 2012, that number had risen to 639.

Banks must submit reports to the Department of the Treasury for cash deposits of more than $10,000, and the government also receives “suspicious activity reports” on deposits below that threshold.

The IRS frequently teams up with local law enforcement to look through suspicious activity reports to see what they can grab. By seizing property (including money) law enforcement agencies, through the Department of Justice’s Equitable Sharing Program,  share the proceeds of the forfeiture!

The scam works like this; The IRS deputizes local law enforcement officers to survey suspicious activity reports and identify cases where the citizen can be subject to forfeiture. If the feds take the money, then the local police get a percentage (part of the take – to use thieves’ jargon).

Obviously, he government has a financial incentive to broadly apply the forfeiture laws, and when an agency like the IRS takes money under the forfeiture laws, the lion’s share of the money goes to fund IRS law enforcement activities without appropriation from Congress. The rest goes back into the pockets of the local law enforcement agency. Thus, there is a powerful incentive for law enforcement to abuse civil forfeiture laws; A win-win for the two sets of bureaucrats, and a lose – lose for the nation and its citizens.

Who takes your money without due process?

Robbers and the federal government (one in the same).