|
Property seizure abuses must end |
|
May 8, 2017 |
By U.S. Senator Mike Crapo
In past columns, I have written about
legislative efforts to stop the abuse of asset
seizure laws to take Americans’ property without
proof of a crime, or even an arrest or warrant.
A recent report from the Treasury Inspector
General For Tax Administration (TIGTA) sheds
further light on the alarming property seizure
practices of the Internal Revenue Service (IRS).
TIGTA’s mission is to provide oversight of the
federal tax system to ensure the IRS “is
accountable for the trillions of dollars in tax
revenue it collects each year.” Following
reports of the IRS seizing the legal assets of
Americans, TIGTA looked into the IRS’s seizures
of the property of Americans suspected of
structuring their financial transactions to
avoid Bank Secrecy Act (BSA) reporting
requirements.
The Bank Secrecy Act of 1970 was intended to
prevent money laundering and requires financial
institutions to report daily cash transactions
that exceed $10,000. Some small businesses with
legal earnings have been accused of
“structuring” cash deposits to fall below the
reporting threshold and have been subjected to
costly, drawn-out processes to try to get their
money returned. However, the reporting
requirements were never meant to be a means for
stealing the assets of Americans making legal
financial transactions, but rather a means to
deter criminal activity. As TIGTA points out in
the report, “the BSA reporting requirements were
not put in place just so that the Government
could enforce the reporting requirements. They
were put in place to give the Government tools
to address criminal behavior.”
Unfortunately, based on the findings in the
report and the accounts of Americans, including
those who have testified before Congress, the
overwhelming amount of funds seized by the IRS
came from legitimate sources, many from mom and
pop small business owners. TIGTA’s report
includes the following alarming findings:
* “Most of the seizures for structuring violations involved legal source
funds from businesses.”
* “$17.1 million was seized and forfeited to the Government in 231 legal
source cases.”
* “Structuring seizures primarily involved legal source funds from
businesses, and tax crimes were rarely
established.”
* “Interviews with property owners did not meet all criminal
investigation requirements, and advice of rights
was not provided.”
* “There is a lack of evidence that property owners’ reasonable
explanations were considered.”
* “Property owners were not adequately informed of pertinent
information.”
* “Noncustodial advice of rights were generally not provided.”
TIGTA noted the IRS’s policy change to no longer
pursue seizure of legal assets for banking law
reporting violations, but also found
inconsistencies in following this policy and
made recommendations that include establishing
controls to ensure cases pursued meet the
policy; returning funds seized in legal source
cases; and ensuring that reasonable explanations
are considered.
We must be ever watchful and maintain pressure
to ensure that such practices are stopped for
good.
I am continuing to question the IRS about its
seizure practices and have again co-sponsored S.
642, the Fifth Amendment Integrity Restoration
(FAIR) Act. Fellow Senator Rand Paul
(R-Kentucky) introduced this legislation that
would better protect property owners from
wrongful property seizures and decrease
potential monetary incentives for agencies to
seize assets.
The FAIR Act would put the burden of proof where
it should be — on the government, not innocent
Americans. Similar legislation has also been
introduced in the U.S. House of Representatives.
Federal agencies must not ignore the limits on
their powers to swipe the earnings of America’s
small businesses. Property seizure abuses not
only are unjust and run counter to our system of
government, but also suppress innovation and
growth.
I will continue to press for adherence to and
enactment of commonsense restraints to end these
abuses. |
|
Questions or comments about this
article?
Click here to e-mail! |
|
|
|
|
