The US House of Representatives is expected to vote on a broadly supported bill this week that is designed to limit IRS ability to seize your bank account and freeze assets. The constitutional power given to the IRS to aid in the collection of unpaid taxes is known as “Civil Asset Forfeiture.” Under this overwhelming power the IRS has enjoyed virtually unlimited power to levy the bank accounts of individuals and businesses who owe the IRS for unpaid taxes. The bill before congress is designed to limit this power.
Presently US banks are required to report suspicious activity as well as all cash deposits or withdrawals of more than $10,000 in an attempt to thwart terrorism and illegal criminal activity. Taxpayers who regularly operate just under this level are often suspected of “structuring” banking transactions in order to avoid identification and investigation. Unfortunately, the IRS has abused this power (originally designed to thwart terrorism and money laundering) to harass innocent taxpayers. An independent watchdog group has noted that the IRS has seized over $43 million from property owners in the US from 2007 to 2013.
At Allen Barron, we have helped clients who have suffered from over-aggressive IRS agents who have seized business and personal bank accounts without meeting the necessary requirements of US law. Our seasoned tax attorneys protect our clients from unwarranted levies, garnishments and other tactics designed to seize money and assets in order to collect back taxes. Fortunately our laws are not designed to strip US taxpayers of protections against the IRS, and we work on our client’s behalf to fight the IRS and work to correct abuses of the agency’s power. Unchecked, this process can consume unnecessary resources and time and impede business opportunities.
If you owe the IRS more than $20,000 we invite you to contact us or call 866-631-3470 for a free consultation. We support the efforts of the bipartisan group within the US house to limit IRS ability to seize your bank account or other sources of income.