IRS Seizes First, Asks Questions Later

When Carole Hinders answered a knock at the front door of her home in August 2013, she was confronted by two IRS agents. They told her they had just cleaned out the entire bank account of the restaurant, Mrs. Lady’s Mexican Food, that Hinders had owned and operated in tiny Spirit Lake, Iowa, for the past 30 years. The IRS seized more than $32,000.

While Hinders stood in shock, the IRS agents told her that her cash deposits looked suspicious. Based on that suspicion alone, the IRS had authority to seize her entire bank account using a federal legal procedure known as civil forfeiture.

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