The IRS seized $153,907.99 from Khalid “Ken” Quran’s bank account, his whole life savings, every freaking penny, without a trial, and even though they could show he did nothing wrong.
And it was all legal.
Under federal “structuring” laws, the IRS can seize your bank accounts if it discovers a pattern of frequent transactions under $10,000. Banks are required to report cash transactions over $10,000 and it’s a crime if one tries to avoid that reporting by purposefully keeping all transactions below that amount.
The laws are intended to identify drug trafficking, money laundering, organized crime, or terrorist activity. Presumably all those bad guys are unaware that if they keep writing checks for $9,999 the IRS might notice.
The nasty part of these laws is that the IRS doesn’t need any evidence of wrongdoing before seizing the money. Basically, if they see a pattern they don’t like, they just seize your money and let you walk back psuedo-guilt to innocence if you can afford to.
Back to Khalid Ken Quran, above, whose case of course had nothing to do with him being a Muslim.
Quran runs a small convenience store, and almost all of his transactions are in cash. Like a good citizen, he saved his money, making regular large cash bank deposits. Now, following months of struggle after the IRS took his money, Quran may be getting it back.
All it required of course was Quran to locate a lawyer who would work for free (because Quran had no money, funny thing) who spent months haggling and harassing the IRS. They eventually gave up the money, but officially won’t confirm or deny the case was resolved.
Quran, 61, is still under water even with his money back in the bank. He had to take out a $50,000 loan to keep his business running.