WASHINGTON — The commissioner of the IRS offered an apology of sorts Tuesday for seizing the assets of taxpayers absent any evidence of a crime, but not before one angry congressman compared the agency’s actions to torture.
Commissioner John Koskinen appeared before the Ways and Means Committee to explain why the agency had seized hundreds of thousands of dollars from business owners simply because they made cash deposits under $10,000. It happened, he explained, under banking secrecy laws that bar people from hiding deposits of more than $10,000 — which must be reported to federal authorities — by breaking them into separate smaller payments.
In order to seize the bank accounts of several businesses highlighted in the hearing, the agency simply had to assert that the businesses were making numerous deposits under $10,000, and claim the deposits were evidence of “structuring” payments to avoid detection. No other proof was required.
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Koskinen noted that about 60 percent of the people who have their assets taken never show up to contest the seizure, suggesting that indeed they are criminals.
The committee pledged to pursue legislation — first offered last year — that would curb the IRS’ ability to seize assets without proof of a crime.
Michael McAuliff covers Congress and politics for The Huffington Post. Talk to him on Facebook.
