IRS Seizes $107,000 from Business Owner for Making Cash Deposits

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Top Tier Gear USA

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In recent years, America’s absurd civil forfeiture laws have been facing heavy criticism from the public, especially for the effect they have on small businesses that deal in cash. If you withdraw or deposit more than $10,000 into your bank account, your bank has to report it the government; and if you do the same with less than $10,000 (the law doesn’t state how much exactly) they can accuse you of trying to avoid the law. When that happens, you can say goodbye to every penny you own.

Lyndon McLellan learned this hard way when the IRS confiscated $107,702 from his business account. He runs a convenience store in North Carolina, which as you can imagine, deals heavily in cash. And being a convenience store (which are robbed at a higher rate than other businesses), it’s not a good idea to have thousands of dollars lying around. It’s safer to make frequent, small deposits. Despite how logical this would appear to a normal, sane person, the IRS took his money, and now it’s up to him to prove his innocence (so much for innocent until proven guilty).

What makes this case stand out from so many others, is that the DOJ has recently changed their policy on civil forfeiture to prevent this from happening to cash businesses. Unfortunately, the IRS’s field agents have yet to comply with the new policy.

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  • As the state produces no wealth its only options are to steal and extort.

  • Pete752

    What needs to be considered is the planning abandoning the status quo (TPTW) then perhaps implementing a fair and balanced economy with currency based on something with real value. For too long we have been hoodwinked into playing the games of the few. It’s time the few find themselves on the outside looking in. Think about it!!

  • cama9

    Time to stop using BANKS! Dig yourself a hole somewhere, buy a safe then stash your money in the safe. Then as soon as possible, convert some of that fiat into real money – gold and silver and stash that in a different location. Make deals with your distributors to pay in fiat to avoid checks, or credit cards then pay off the credit card bill in fiat at the bank. Keeping that much money in an IRS petty cash box (i.e. BANK) – which is what $107,000 looks like to the IRS though not to us – is just begging the thief to dip into it.

    • If you keep bitcoin in an ancrypted wallet accessed anonymously it is money that you own that is in now way tied to you, just like cash. I do the precious metal thing too.

      • Rick E.

        I was thinking about doing a wire transfer and buy precious metals! I fear for the rest of my savings that I worked for.
        I fear though, my friend, that they will soon declare that undeclared and “excessive” amounts of cash and precious metals illegal.
        What a predicament we are in! This is ultimate fascism being unfolded right before our eyes!

        • You’ll always be able to keep millions in bitcoin anonymously which will be illegal also but so what? You’ll always be able to spend and use it anyway and ther are more encrypted crypto currencies on the way like dark coin. Stacking up PM’s is good too + you don’t have to worry about market fluctuations as frequent and large as bitcoin. You have to physically guard the PM’s though, I guess the same could be said for bitcoin because I have to know where my usb stick is, if I lose it I’m screwed. I read a story about a guy who accidentally threw out his USB drive with bitcoin on it, 7 mil, he searched the city dump and never found it, ouch! I split up my PM’s and hide them though so there are advantages to both.

          • Lamar L Ramal

            Only an idiot would keep money in bitcoin form. Why are you telling people this BS. Digital 1’s and 0’s is not any form of currency. Take your USP stick with half your life saving in it [which in your case is what $500.00] down to the store and see what it gets you. You are a child.

          • Only an idiot will tell other people they are idiots, stick to what you understand, fool.

          • englishvinal

            Lamar… you are not exactly a rebel or a forward thinker are you?
            Change is not in your vocabulary is it? Or only “Obama change”??

          • He’ll keep doing the same old things because “I’ve always done it this way,” words of your typical failing businessman. Hope it works out for him.

        • Lamar L Ramal

          Do not use a wire transfer or buy PM through the mail. It is traceable. Take the cash to a PM bullion dealer that every major city has and as long as you spend less that 10k a person you are fine. They give you a form to fill out and just put down some made up name. No ID required. Stop listening to most of these commenters who really have no experience in this matter or for that matter any money. That fact is very clear after reading most of these comments. Do your own diligence in these matters.

          • You don’t know shit about bitcoin, why should he listen to your PM advice from your 5 silver ounces, lol.

          • englishvinal

            Well, you are correct in what you just wrote Lamar…. but getting the gold (coins or ingots) OUT of the US is another hurdle to be negotiated. Unless you make repeated trips and declare that you are taking the value of whatever it is that you are carrying.. (and then I suspect that your passport would be flagged once you exceeded ten thousand dollars and you would be detained for questioning)….
            With BitCoin you don’t have to physically schlep the stuff out.

          • Finally a soul who understands me! After you walk/fly over whatever border you can go cash your bitcoin back in for PM’s, gold if that’s what you like! (the btc price does move so you may only be able to take some out until the price recovers OR things could swing your way and you end up making $$ just for passing it through btc, either way it’s still worth it IMO) You just took your gold with you internationally and anonymously didn’t you? Why can people not grap this concept? Birthday cards could say “Check your wallet” instead of mailing cash for the postal workers to steal. Our whole world would be different.

      • Rick E.

        Is it possible to buy precious metals securely and reliably online?

        • CharlesH

          I go to VERY reliable, secure, competitive and fast delivery.

          • Rick E.

            Thanks for the tip, I live off of the grid with no post office service, I use a PO Box. Do they deliver to a POBox?

            There’s absolutely NO delivery of UPS or Fedex where I live.
            I mean that I AM OFF GRID, but do have solar and propane.

          • CharlesH

            You’re welcome. I’m not off grid and have my orders mailed right to my home but I don’t see why they wouldn’t sent yours to a PO box. You won’t be ‘off grid’ when you make a purchase those since it is through the internet – you’ll have to have a method of payment (charge card, debit card, whatever). You can go to the website and see exactly what methods of payment they do accept. I, personally, have never had a problem dealing with Check them out – doesn’t cost anything. Good luck!

          • You can use a service called blur to make a one time credit card purchase which will give you a flimsy layer of anonymity… it’s better than nothing and keeps your REAL credit card info out of retail outlet databases where they are vulnerable to attacks.

          • lol, I didn’t even read your reply yet and suggested the same place.

          • CharlesH

            Like minds always think alike.

        • Yes(jmbullion) but I don’t like the fact that they can see the purchase(visa, mastercard, paypal) because then they know I have it(just like guns, seeds, and other preps). I’ve never used bitcoin to buy PM’s online which would be the most risky but would also be the most anonymous, I will look for some reputable dealers.

          You can get a mailbox at a UPS store and just drive to pick up from there. Lucky you, I wished I lived that far away from people, I hate people, lol.

        • Kountry Bumpkin

          I was going suggest JMBullion too, somebody beat me to it, they take check, credit card and paypal. Do a search for gold/silver bullion, there are also other companies to choose from if you like.
          Oh, you can also buy bullion on eBay and a lot of the companies you’ll find in your search sell there.

      • englishvinal

        BIG yes … to that suggestion.
        It works and works silently, covertly and effectively

        • Yet I get told how stupid I am(ironically by the stupid) when I bring it up, lol.

  • They are just giving us another reason to adopt digital currency when they introduce it. Most Americans are oblivious to the insecurity of banks and the treachery of their government before they experience it first hand. When they introduce the digital currency, the smart money will be that which you buy with the digital currency, from your PM dealer.

    • Rick E.

      Just last week I withdrew a sizable amount of money from my account and I was treated like a criminal! They asked me what I was taking the money out for and said they are required to ask this when a customer withdraws or deposits near $10,000.
      It wasn’t that amount and I STILL was interrogated!
      I have had it with the fractional reserve banking system!
      I then asked them how would they pay me if I closed my account. They replied with a check that no one would cash, just deposit it, and basically start over right where I left off!

      • Damn, I read that they are reporting anything over 5k now, I’ll never keep that much in the bank now. Any extra funds I have are withdrawn and turned into precious metals, transfered to coinbase and turned into bitcoin, or transferred over to lending club where I buy little $25 notes with them. The bitcoin and ledning club money can be easily withdrawn and spent(bitcoin immediately, lending club takes 2-3days to sell the notes but it’s not too bad), the precious metals just sit there.

        • Rick E.

          Yeah, no wonder why they messed with me, I heard about that too.

      • Sizable is one of those words that lack specificity. The bankers are being used to generate probable cause for currency crime investigators. It is not the fractional reserve banking system that is causing the problem.
        Were you completely ignorant about this when you attempted to make the withdrawal?
        FWIW, I only leave enough in any bank account to cover a transaction I am using a debit card to pay for being made via either telephonically or over the Internet. I am paid by direct deposit, which establishes the “credibility” of the source of the money, and I remove my cash via ATMs that can’t ask questions.

        • Rick E.

          The bulk of my money is not in a conventional bank. It is in an account that I have no access to without driving a considerable distance to get to it. It’s NOT on an ATM accessible account.
          I remove money from it from time to time in order to load my regular checking account.
          This is an entirely different situation than what you’re talking about!

          • Yes your situation is much different. Man I wish there were a way to tell you what I do for a living, it would really help you(I’ll try to think of something). Right now I have: a self-directed IRA(almost nobody has these or even knows about them, less than 5%, usually only the most sophisticated investors) – you pay taxes and fees on the way in(your paying tax on the seed, not the crop), a Health Saving Account(HSA) – 100% tax deductible so I max it out but they will only allow $3000/yr but so what? I get taxed on $3000 less of my gross income this way, a lending club account, many many bitcoin wallets lol, physical precious metals, cash reserves, then finally credit cards which all have at or near zero balances. My credit score is well above 800 but I get shit for that where I work because they say that it’s “too high” because I’m not “utilizing it correctly.” If you show up at my company with a brand new beamer you will be publicly shamed at the company meeting, lol, one guy was totally embarrassed. They are all about financial responsibility and discipline. I am being taught by the best so that’s why I help out with these topics. The payday loan/ car title loan/ united check cashing/ whatever guy is right even though he is an uninformed, ignorant asshole, going to your local PM store and buying smaller chunks at a time with cash is one anonymous (besides security camera footage)way to get your money out. As I said before one lady I know of has 50K in lending club and she’s earning very high returns. They are unsecured loans BUT they are all in $25 shares, talk about spreading risk out. If she wants/needs money she just sells some of her loans which only takes a few days. I don’t have much in lending club, yet. I am younger so I am building up many things simultaneously so they don’t grow that fast but they DO earn great returns in interest right away. I buy lending club notes with my HSA and I can buy them with my self-directed IRA, I also buy them on the outside with my regular bank account but then I have to pay taxes on the gains.

          • Rick E.

            Wow, you certainly sound busy! It appears that you know what you’re talking about! Too bad there wasn’t a way to exchange emails, as this is too public of a venue for sharing much, damn it.

            I used to be, but I quit was I was doing to make money, as the market appears too volatile and unpredictable now. I simply made great money by speculative investing in the stock market for several years. It enabled me to make enough to retire early.
            But I never knew what a hassle it was to move substantial amounts of money before!

          • Thanks man but I am just a student. The IT(and bitcoin) stuff is all mine, I earned that knowledge by putting in time and studying. The financial stuff I am being taught so these words aren’t really mine, think of it as someone very smart, very successsful speaking through me. My whole setup is from listening and taking many notes(+recording shit with my phone so I can listen again later, lol). It’s funny that very rich people just do slightly different things often times with the same money as poor people but end up at the opposite end of the spectrum because of how they did it. I am cash poor, less than 2k in the bank at most times which is adequate because I bought a cheap house that has a strong rental market but by living cheaper I can invest more and still live comfortable (I try to get by on as little as possible, except for my retics, lol). I’m keeping this investment and moving into another place via FHA loan where I only need 3% down but I’ll have to pay “mortgage insurance” for 3 years which will add to my monthly payment which I do not like but it’s a trade off for getting in there cheap. I bought my current residence for $1100 down and it is a very nice place with all beautiful hardwood floors and woodwork. I paid more money to move into my apartment than I did for my house! My monthly payments went down and my square footage shot up, lol. From time to time when these type of articles pop up I’ll release some notes from the archives of listening to these financial ninjas weasle right through this beast system and use it to their advantage. These people are much older/experienced than I am but the techniques are simple and anyone can apply them. Some of the moves they make are so smart it’s very impressive and captivating to listen to. I run any big move I make by them first. I’ve heard it for years so I do know it but I am not that far along yet and can’t do the tax ninja shit they do, lol, I’ll learn though.

          • If it is in a federally-regulated institution, it may as well be in a regular bank, especially if it is “insured” by the likes of FDIC, FSLIC, NCUA, etc.

      • Clare O

        good for you!

  • Rick E.

    This blatant massacre of due process is abominable! This theft of our populace must stop! Is THIS now AmeriKa???
    We need to destroy the IRS, not just abolish it!
    The IRS is rouge and needs TO GO NOW!

    • I can’t believe they lasted this long, go corruption!

  • rivercity

    criminal scum – “structuring”… what a joke

  • unbubbleslayr

    Are these agents braindead? A business deposits cash, what is so unusual about that?

  • Clare O

    if they’re so desperate for cash, quit cutting deals for people who owe the irs so much, then they pay a fraction because they got a lawyer. if you earned it, you pay the taxes. start with the wealthy.

  • Al

    The IRS is owned by the Federal Reserve. It gets its power from the Dept. of the Treasury. It was created when they illegally change the law and created the banking act of 1913. It means the IRS like the Fed. are not part of the our government. All of our federal taxes go directly to the Federal Reserve. It’s a con job and it needs to stop!

  • It’s not the PO box that you need to obfuscate your info on, it’s the purchase. If the purchase is made anonymously but the package is sent to your PO box nobody knows what’s in the box except you and the place you bought it from(if you bought it from outside the US then nobody you care about knows). I walk the walk and have done this successfully many times. That jerk above talking trash is what I have to deal with almost every time I bring up bitcoin but I don’t care this info is vital to people even if they don’t realize it yet. It’s like they hate what they don’t understand and look to crucify the messenger instead. ** You can also create PO boxes in any name/address you want but that’s an entirely different discussion, lol.

    • englishvinal

      I appreciate any input about BitCoin.. and yes I am still ignorant about exactly how BitCoin can work.. but I’ve studied enough to get the general gist of it….
      And it IS vital to people, unless they want to keep bending over.

      • It is extremely powerful, game changing powerful! It has 8 decimals, not 2 like the dollar. This means that a goat herder in pakistan can charge bitcoin for his goat milk via technology and not have to pay a $10 citibank fee on a fraction of a US penny sale to another poor person! The poor can transact without banks! You can walk across any border with empty pockets with what they call a brain wallet that you only need to remember, all possibilities are unfathomable but I get wolloped by ignorance very time I bring up the topic like you can’t lose money in the stock market or you can’t get robbed of your cash or PM’s or something. My favorite is “bitcoin is for drugs!” like all dollars don’t have cocaine res on them, lol. When they busted silk road the price fluctuated less than $5 for less than 24hrs. After I saw that I knew the bitcoin market was certainly not primarily drug-money driven, the HSBC is though! That doesn’t count when it’s THEIR money though!

  • You shouldn’t be showing up to to get somethin’ for nothin’ in the first place.

    • Rick E.

      I agree 100%! Why burden we tax payers any more than is necessary.

      I would shoot critters to eat if I didn’t have any food, rather than get food stamps or welfare.
      Though I do realize that few live in a wild game rich area like I do.

  • englishvinal

    Way past time to stay OUT of banks…. do business in cash, pay your bills with money orders or cash, (or junk silver), launch yourself off into studying how to use BitCoin…..
    The government has not made the use of cash “illegal” … YET… but they are punishing anyone who they can find using it if possible. The currency controls are in place and getting wider as we speak.
    All FAILING nations resort to currency controls, and then PEOPLE controls.. as in you will be prohibited from leaving the country, my take on this is that anyone who has business sense, needs to liquidate and take themselves OUT of the gulag.
    The south and central American countries are close and have created a relationship to the east (China, Russia, etc who are on the UP swing) and businesses down south would be where the future is.

    • They have lots in SA with huge acreage for cheap, I was looking at them but I can’t make a move yet(not financially dveloped enough to move without needing work), I’m probably goiing to get stuck in the shit.

  • englishvinal

    Steve Quayle is too far out of the “now” of reality for my taste. Usually people like him, sell FEAR and apprehension..
    Think Alex Jones.. and they capitalize on the fear that they generate by “selling stuff”…

  • Todd MacCubbin

    How long do you think it will take the government to regulate the bitcoin! You guys are jus fooling yourselves!

    • What makes you think all people care if they regulate it? All it takes is a (network)fork and viola, another crypto-currency is born! I’m not fooling myself I’m wise enough to know better, besides, all of my money isn’t in there but I make short-term gains all of the time with it though. It’s kind of a no-brainer in my circle. If every single computer all died at the same time tomorrow(the big argument) I would have still done just fine and gotten a lot of things much cheaper and/or free so I’m not too worried.