IRS Seizes A Store Owner’s Life Savings – But They Never Thought They’d Have to Do This With It

February 29, 2016 in News by RBN Staff

The IRS doesn’t exactly have the best reputation.

From their unfair (and illegal) targeting of Tea Party non-profits, to their overly burdensome and difficult tax laws they’re just not a great entity to  have to deal with.

But some people really get the rough end of the stick, “including Ken Quran, who had his life savings taken from him for the “crime” of making withdrawals from his bank in amounts the federal government finds suspicious.”

But now the IRS is being forced to return all that money.

Details from an I.J. press release today:

Ken’s money was seized under so-called “structuring” laws. These laws were designed to target criminals evading bank-reporting requirements. But under IRS policy at the time of the seizure, the IRS applied the structuring laws to seize cash from individuals and businesses accused only of frequent under-$10,000 cash transactions.

The IRS changed its policies in October 2014 to prevent such seizures. But those changes came too late for people like Ken, whose property was seized before the policy change.

So, in July 2015, the Institute for Justice submitted a petition to the IRS on Ken’s behalf, arguing that the IRS should apply its policy retroactively to Ken’s case. The petition argued that the money “would not be seized—much less forfeited—under current government policy” and urged the IRS to “do the right thing and give the money back.”

This week, IJ sent a letter to IRS Commissioner John Koskinen following up on the petition—and urging the IRS to act quickly to give Ken his money back.

Today’s letter states that Ken’s petition is granted “in full.”….

According to data obtained by the Institute for Justice from the IRS via the Freedom of Information Act, the IRS forfeited about $43 million in 618 structuring cases between 2007 and 2013 in which the IRS reported no suspicion of criminal activity other than the mere fact of sub-$10,000 cash deposits.

Structuring is a legal form of theft employed by the IRS.

It’s quite similar to civli forfeiture used by corrupt city governments to seize money from individuals.

The fact this decision was reversed inspires hope and shows us, the average American, we have the power to reverse the momentum of a wild and out of control government. There are numerous cases in which these kinds of abuses aren’t overturned, and it’s quite scary.

Are you shocked the IRS lost in this way?

Tell us in the comments below.