It’s general knowledge that anyone making a deposit of $10,000 or more triggers a report that is sent to the IRS. The IRS doesn’t want anyone to get away without paying every penny possible in taxes and they supposedly want to prevent money laundering schemes.
In order to avoid deposits being reported to the IRS, many individuals and small businesses keep all of their deposits below the $10,000 limit, but may make a number of deposits. What they may not know is that numerous deposits under $10,000 also draw the attention of the federal vultures at the IRS.
If the IRS believes these multiple deposits are being made to avoid the federal reporting process, they send their hunters after whoever is making the multiple deposits. The IRS refers to this as ‘structuring’ deposits and they don’t like it.
What the IRS doesn’t seem to consider is that the business insurance carried by many small business owners only insures cash losses up to $10,000. That forces the small business owners to make more frequent smaller deposits. When successful small business owners make their more frequent deposits under $10,000, it gets the attention of the IRS as they don’t like people being successful.
Lyndon McLellan, a small business owner in North Carolina found out just how far the IRS will go to attack people like himself who make multiple smaller deposits. According to the IRS, the convenience store owner was making far too many smaller deposits. Using the Civil Asset Forfeiture Rules, the IRS seized $107,702 from McLellan. McLellan has not been charged with any crime, but that didn’t stop the IRS from seizing his assets.
Generally in America a person is innocent until proven guilty, however, that is not the case with the Civil Asset Forfeiture Rules when applied to the IRS. The victim, which in this case is McLellan, is responsible to prove that he did not violate the structuring laws and that’s where the IRS is reaping a small fortune. Most people and small business owners find out that it will cost them more in legal fees than the amount seized so they don’t pursue trying to recover their seized assets.
The Institute for Justice is a libertarian public interest law firm and they have taken up the case for Lyndon McLellan. They made the video below to make the public aware of tyrannical actions of the IRS.
Many of Barack Obama’s policies have hurt small business owners. He doesn’t want the average American to be successful. He wants to break them down and force them to seek government aid like millions of others have done under his rule. The more people that are slaves to government assistance, the easier it will be for Obama to shift the nation over to a completely socialist form of government with him as the supreme dictator.