Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required - NYTimes.com

“I don’t think they’re really interested in anything,” Mr. Potashnik said of the prosecutors. “They just want the money.”

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In some of the cases I have read, I believe the above statement to be very true,,,

For almost 40 years, Carole Hinders has dished out Mexican specialties at her modest cash-only restaurant. For just as long, she deposited the earnings at a small bank branch a block away — until last year, when two tax agents knocked on her door and informed her that they had seized her checking account, almost $33,000.

The Internal Revenue Service agents did not accuse Ms. Hinders of money laundering or cheating on her taxes — in fact, she has not been charged with any crime. Instead, the 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.

“How can this happen?” Ms. Hinders said in a recent interview. “Who takes your money before they prove that you’ve done anything wrong with it?”

The federal government does.

Using a law designed to catch drug traffickers, racketeers and terrorists by tracking their cash, the government has gone after run-of-the-mill business owners and wage earners without so much as an allegation that they have committed serious crimes. The government can take the money without ever filing a criminal complaint, and the owners are left to prove they are innocent. Many give up.

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Richard Weber, the chief of Criminal Investigation at the I.R.S., said in a written statement, “This policy update will ensure that C.I. continues to focus our limited investigative resources on identifying and investigating violations within our jurisdiction that closely align with C.I.'s mission and key priorities.” He added that making deposits under $10,000 to evade reporting requirements, called structuring, is still a crime whether the money is from legal or illegal sources. The new policy will not apply to past seizures.

The I.R.S. is one of several federal agencies that pursue such cases and then refer them to the Justice Department. The Justice Department does not track the total number of cases pursued, the amount of money seized or how many of the cases were related to other crimes, said Peter Carr, a spokesman.

Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required - NYTimes.com

IRS Scam Largest of Its Kind Yet, What Taxpayers Should Know – AARP

At least 20,000 taxpayers have been contacted in this sophisticated ruse, added Treasury Inspector General for Tax Administration Russell George, with “thousands of victims” having already paid more than $1 million to fraudsters posing as IRS agents.

The scheme goes like this: The Taxman tricksters claim you owe taxes, and demand immediate payment using a prepaid debit card or a wire transfer. Refuse and you’re threatened with arrest, deportation or the loss of your business or driver’s license.

To suggest further authenticity for their phony phone calls, the scammers have been known to also spoof an IRS toll-free phone number on your caller ID, give common names and fake IRS badge numbers, and follow up their calls with emails purporting to be from the agency.

“If someone unexpectedly calls claiming to be from the IRS and uses threatening language if you don’t pay immediately, that is a sign that it really isn’t the IRS calling,” George said in a statement.

Here’s why,,,

IRS Scam Largest of Its Kind Yet, What Taxpayers Should Know – AARP

IRS releases list of "Dirty Dozen" tax scams of 2014 - CBS News

The IRS has a warning for Americans -- watch out for tax scams.

Every year the agency releases a "Dirty Dozen" list of the worst tax scams out there. This year, identity theft and phone scams top the list.

IRS Commissioner John Koskinen says even the savviest taxpayers can fall victim if they aren't careful.

"These schemes jump every year at tax time," he said. "Scams can be sophisticated and take many different forms. We urge people to protect themselves and use caution when viewing e-mails, receiving telephone calls or getting advice on tax issues."

IRS releases list of "Dirty Dozen" tax scams of 2014 - CBS News