I.R.S. continues to be the arm of the war on cash as agency steals money from convenience store owner

It is not only banks that have declared a war on cash, but for years now the government has instituted illegal policies and used its muscle to intimidate and steal from individuals and business owners who simply prefer to transact in legal tender.  And in a new and absurd occurrence that took place, the Internal Revenue Service took (stole) money tied to a convenience store owner simply because his deposits ‘appeared’ to be tied to some unknown criminal activity that the business owner has yet to be cited for, or charged with.

Using the ‘War on Drugs’ spurious law known as Civil Forfeiture, the tax agency seized $107,702 from Lyndon McLellan simply because his nightly deposits were below the $10000 reporting threshold, and gave the appearance of being the proceeds of some illegal activity like perhaps selling sodas and candy bars.

If you deposit more than $10,000 in cash, your bank is required to file a form with the authorities reporting the transaction. But the law also makes it illegal to “structure” deposits — depositing cash in amounts under $10,000 to avoid triggering the reporting requirement.

But aggressive enforcement of these laws can ensnare small business owners whose only crime is dealing in cash. This video tells the story of Lyndon McLellan, a convenience store owner in rural North Carolina who had $107,702 seized by the IRS. The agency hasn’t charged McLellan with any crime, but under controversial civil asset forfeiture rules the burden of proof is on him to prove he didn’t violate the “structuring” laws. The video was made by the Institute for Justice, a libertarian public interest law firm that is representing McLellan. – VOX

Civil forfeiture has been a highly controversial government action that has finally reached the media and Congress on its draconian effects on people who have not committed a crime.  In fact, local police departments and public attorneys have used the letter of this law to confiscate billions of dollars in cash and property, in opposition to the Constitution’s right against illegal search and seizure.



Last week, J.P. Morgan Chase bank issued a letter to their customers that they would no longer be allowing the use of cash to pay on debts such as mortgages, auto loans, and credit cards, and are also disallowing its storage in rented safety deposit boxes.  Additionally, the Federal government already has in place laws that force people and business owners to report to authorities when they deposit or withdrawal cash in quantities of over $10,000.

As the nation’s debt climbs towards $20 trillion, and the economy is producing less and less revenue, even to the point where one state is cutting funding to their state universities by 87%, the government is using mafia style enforcement tactics, which include outright theft and extortion, to steal the rightful wealth from the people under the guise of ideological wars on drugs and terror.  And the absurdity of the I.R.S. seizing money from a rightful business simply because his business model for deposits doesn’t fit in with the agencies inability to distinguish an unknown drug dealer from a registered and licensed business owner, is one of the primary reasons why the world is moving away from the dollar and U.S. hegemony, and over to a system where free trade and money is not only respected, but valued.

Kenneth Schortgen Jr is a writer for Secretsofthefed.comExaminer.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.