The IRS is drawing criticism for illegally seizing assets of small business owners without a full investigation.
A dairy farmer appeared on Closing Bell Friday to discuss his experience with the IRS. The treasury department notified the farmer that they had frozen his assets because he deposited less than $10,000 for the week, even though he had earned more from selling goods at a farmers market.
The IRS has no right to seize assets on a whim. The department wronged this farmer--but he is not the only one.
The scandal broke nationally when the IRS seized the entire business account of a Georgia gun shop owner in 2013. The account was worth almost $1 million. Similarly, the seizure was based on depositing amounts less than $10,000.
"You are under suspicion if you deposit over $10,000, and you're under suspicion if you deposit under $10,000," CNBC’s Bob Pisani said.
The scandal drew bipartisan anger from Congress. The law states that if the IRS has reasonable doubt that cash fund being deposited into bank accounts over or near $10,000, the agency is within its rights to investigate. Banks must report all cash deposits over $10,000. Many Congressmen, however, said the IRS blatantly violated the trust of the American people and failed to use common sense and decency.
House Ways and Means oversight subcommittee chairman Peter Roskam called the incidents an "abuse by the federal government against citizens."