IRS Seizes $100,000 from Innocent Small Business Owner

It is no secret that the IRS can be a huge problem for people. But most taxpayers trust the IRS to be competent, if not pleasant. Unfortunately, assuming competence is giving the IRS more credit than is due, in many cases. The IRS is often careless and enforces laws or penalties even where they should not apply. And not surprisingly, when the IRS makes some type of mistake it can be exceedingly difficult to get it corrected, especially if you are attempting to deal with them on your own.

One prime example of this happening took place not long ago in North Carolina. A convenience store owner, Lyndon McLellan, had over $100,000 seized from him by the IRS. The IRS took the money based on a federal banking law that was intended to fight drug trafficking and money laundering.

McLellan had been depositing money from his business over the course of 13 years. The IRS thought this was suspicious because he made so many deposits that were under $10,000, which is the amount where banks have to begin reporting the deposit to the feds. Based on the suspicion that he was attempting to avoid the deposits being reported, the IRS raided his accounts and confiscated the money.

The IRS has claimed in the past that they won’t be targeting legitimate business owners with this type of forfeiture, but it continues to happen with surprising frequency. In some cases the business owners can’t get the money back for months, years, or even ever. Fighting the IRS can be extremely confusing, difficult, and time consuming if you’re doing it without the help of an experienced tax attorney.

Don’t Fight the IRS On Your Own

While major issues like the example above aren’t likely to happen to most people, it can be nearly as devastating to have smaller problems with the IRS. If you believe the IRS has wronged you in some way, you need to take action as quickly as possible. One of the most important things, however, is to not attempt to fight them on your own. Having a qualified tax attorney who knows how to work with this convoluted system can dramatically increase the chances that you will get favorable results.

If you are facing issues with the IRS, contact our law offices for a consultation. We’ll be happy to review the facts of the case and help you evaluate your options.

Written by E. Morgan Maxwell

E. Morgan Maxwell

Since beginning his own firm, Mr. Maxwell has continued a tax-law oriented practice encompassing a wide range of transactions, planning and dispute resolution. His dispute resolution experience includes involvement at all levels of the Internal Revenue Service (Examinations, Appeals, Collections, Office of Professional Responsibility, the U.S. Tax Court), the Pennsylvania Department of Revenue, the Tax Litigation Section of the Pennsylvania Attorney General’s Office, Pennsylvania Commonwealth Court, Common Pleas Court and local taxing jurisdictions in southeastern Pennsylvania.

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