Tag Archives: Income Tax

Civil Forfeiture, or Why Keeping Cash in a Shoebox is Good Idea

cash

The Growing Problem of Civil Forfeiture Abuse

Spirit Lake, Iowa:  Mrs. Lady’s Mexican Food has been owned and operated for 38 years by Carole Hinders.  Carole has always preferred to accept only cash payments, so frequent bank deposits were necessary in order to keep from having too much cash on hand at her restaurant.   One day in August 2013, the IRS unexpectedly seized her entire bank account, totaling just shy of $33,000.  It was a clear-cut case of civil forfeiture abuse.  Read more about it at Breitbart.

Long Island, New York:  Bi-County Distributors has been owned by brothers Mitch and Richard Hirsch for 27 years. Their business distributes candy and snacks and other small food items to a number of convenience stores in their area.  Many of their clients pay cash on delivery, so that means that they need to make frequent bank deposits for their own safety.  Then one day in May, 2012, federal agents seized their entire business bank account, which contained a balance of around $446,000.  The federal abuse of civil forfeiture laws was once again the root cause of the near ruination of yet another successful and legitimate family business.

 Abusive Federal Authority Again

Those are just two of numerous examples of a growing form of abuse of federal authority.  These two cases involved the confiscation of cash assets. Numerous other cases involve the confiscation of property in all forms.

If the term Civil Forfeiture means nothing to you yet, you had better start learning about it fast, especially if you operate business which accepts a significant amount of payment in cash.  The IRS is on a mission to find any excuse they can to literally rob you of your hard earned money.

What is Civil Forfeiture?

Civil forfeiture is the act of government confiscation of your property with no accountability whatsoever on their part.  All that’s necessary to trigger it is someone in a law enforcement agency who claims suspicion of a victim’s criminal involvement.  Your property can be taken without you even being charged with any crime.  Depending on conditions of the situation, your vehicle, your home, or all of the cash from your bank accounts could be taken.

Worse yet, because you have not been charged with a crime, civil forfeiture leaves you without the legal protection you would have enjoyed if you really were a criminal!  Neither do any rules exist to control what the confiscating law enforcement agencies may do with the stolen, er, I mean, confiscated property.

One might reasonably expect your confiscated property to go into some kind of protected escrow status. But in fact, in 42 states, confiscating agencies simply keep what they have confiscated and use it as their own.  No law regulates them. It makes no difference if it is cash, vehicles, real estate, or anything else.

Such a rule of law, if it can be called that, provides law enforcement agencies with an incentive to falsely seize as much property as they possibly can.  And they do!

 On what basis are bank account assets seized?

Federal law now requires that banks notify federal agencies whenever a cash sum totaling over $10,000 is made into any bank account.  Such reporting is designed to tip off authorities to the possibility of illegal business acivity.  The war on drugs has contributed to the motivation for such law and invasion of privacy.  As invasive as that law is on personal business, did you know that your deposits may be under continual scrutiny by the IRS, whether or not you make deposits over $10k?

If you happen to have a business which generates a lot of income on a cash basis, you can be accused of “structuring” your deposits by consistently keeping them under $10k.  There do not seem to be any guidelines for federal agents to use to define what constitutes “structuring”.  If you make a series of large deposits of less than $10k, you might be accused of “structuring” your deposits to avoid IRS scrutiny.

In the act of IRS monitoring of your perfectly legal activity of depositing cash sums of several thousand dollars, you have already been scrutinized.  In fact it seems perfectly logical that if you were already aware of the $10k trigger value, you might very well for your own good be attempting to structure your deposits to avoid being targeted as a possible illegal operation.  Who wouldn’t want to avoid being targeted as an illegal operation, especially if you are really 100% legitimate?

Property owners who find themselves caught up in the forfeiture abuse system often spend weeks, months, sometimes years, without having an opportunity to appear before a judge. Too many victims are compelled to simply give up.  They never did anything wrong, but it’s just too pointless and too expensive to continue fighting.
In one well documented analysis of federal civil forfeiture cases, it has been shown that 80 percent of those whose property the federal government seized were not charged with any crime.  This is no better than legalized theft!

Make the federal government accountable, and stop the war on drugs

In order to stop the abuse of civil forfeiture, we clearly have two choices. The practice of civil forfeiture must either be totally abolished, or it must be carried out with accountability.

This abuse of property rights could easily be reduced by 80% by making the legitimate criminal arrest of every victim a prerequisite to property seizure.

“Legitimate” is a key word, and that’s why I lean towards its total abolition. Most cases of legally valid civil forfeiture revolve around illegal and victimless drug crimes.  The legalization of drugs would result in the elimination of a vast part of the underground syndicate. Grounds would then no longer exist to prosecute the greater portion of the remaining 20% of civil forfeiture cases.

Then the federal government  wouldn’t even need to take property away from people anymore, would it?  Or did they ever really need to? Liberty makes life so much simpler.

 

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NBC: Obama IRS refunds ‘Illegals’ $4.2 billion for kids–in Mexico

we'll try to solve your tax problems as soon as we give millions of dollars in bonuses to our employees

So when politicians talk about how socialism is so kind and caring and a far superior brand of government than a conservative based approach – because of the need to help those less fortunate – who exactly are we referring to and where does it stop? Obviously the tax payers of the United States cannot be called upon to support everyone less fortunate in every country the entire world. Yet that’s what seems to be demanded of them.

Should United States Citizens be called upon to support children in other countries? Or should those countries be called upon to support their own citizens?

At this point, our government seems to be in a headlong race to bankrupt every productive citizen in the United States. Then the president can brag about cutting the deficit while he deliberately piles trillions onto the national debt.

Just recently it has come to light that IRS employees are paid billions of dollars a year in bonuses. Bonuses?!? For what? Being the best of the best at harassing taxpayers?

 

NBC: Obama IRS refunds ‘Illegals’ $4.2 billion for kids–in Mexico

This bombshell dropped on Monday in Washington, D.C., causing outrage throughout the halls of Congress, and now beyond, to the “genuine” taxpayers who have been robbed all across America

Investigative television reporter Bob Segall of Indianapolis NBC affiliate WTHR TV Channel 13, was contacted by a long-time central Indiana tax preparer, who blew the whistle on a multi-billion dollar tax fraud about which the IRS has done nothing, according to the TV news show video segment that aired on Monday.

“There is not a doubt in my mind there’s huge fraud taking place here,” he said, slowly flipping through the pages of a [heavily redacted] tax return.

“We’re talking about a multi-billion dollar fraud scheme here that’s taking place and no one is talking about it,” he said.

The scheme involves illegal immigrants that are filing tax returns, claiming child credits for multiple dependents under their support in “their” U.S. household, and collecting enormous cash refunds–such as one persons tax return that showed income of over $14,000, who collected a cash refund of over $10,300.

In 1996 during the Clinton Administration, theIndividual Tax Identification Number (ITIN) was created in order for both resident and non-resident aliens, regardless of immigration status, to fulfill their tax filing and payment obligations under IRS regulations–even though an ITIN does not confer the right to work and receive income in the United States.

This year tax preparation offices across the country were flooded by an estimated 2 million illegal immigrants, who in growing numbers have been taking advantage of a tax loophole called the Additional Child Tax Credit–a fully-refundable credit of up to $1000 per child–meant to ease the income tax burden on working families who have children living at home.

However, Segall’s investigation and reporting found many illegal immigrants who were claiming these tax credits, but for kids who live in Mexico–even listing nieces and nephews.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms,” the whistleblower told Eyewitness News. “The more you put on there, the more you get back.”

After Segall reviewed many of the heavily redacted tax returns, it was still clear that the tax filers had received large tax refunds after claiming child tax credits for many dependents.

“Here’s a return right here: we’ve got a $10,3000 refund for nine nieces and nephews,” he said, pointing to the words “niece” and “nephew” listed on the tax forms nine separate times.

“We’re getting an $11,000 refund on this tax return. There’s seven nieces and nephews,” he said, pointing to another set of documents. “I can bring out stacks and stacks. It’s just so easy it’s ridiculous.”

Under agreement not to reveal their identity or filming them face on, Segall of WTHR was able to speak with several of the illegal immigrants who, using Segall’s translator–confirmed it is easy.

One of the workers, who was interviewed at his [appeared to be a 2 bedroom mobile home] in southern Indiana, admitted that four other illegal immigrants used his address to file tax returns–even though they don’t even live there.

These four workers claimed that not only they, but a total of 20 children between them–about 30 people–lived in the residence.

As a result, the IRS sent the illegal immigrants tax refunds totaling $29,608.

Upon Segall questioning the man regarding that incredible residency claim, he replied … “They don’t live here … the other kids are in their country of origin, which is Mexico,” later saying that none of the 20 children have ever visited the United States–let alone lived here.

Segall then asked why ‘undocumented workers’ should receive tax credits for children living in a foreign country, which is a violation of IRS tax rules?

“If the opportunity is there and they can give it to me, why not take advantage of it?”

Segall then met with Russell George, the U.S. Treasury Department’s Inspector General for Tax Administration, who stated … “The magnitude of the problem has grown exponentially,” but that the IRS has known about the problem for years.

Mr. George said his department has repeatedly warned the IRS that additional child tax credits are being abused by undocumented workers–in 2009 alone, their annual audit report showed that ITIN tax filers received about $1 billion in additional child tax credits.

The same audit report from 2010 showed it cost the American tax payers more than $4.2 billion.

“Keep in mind, we’re talking $4 billion per year.” George continued by saying “It’s very troubling” that the IRS has not taken any action on the matter–despite these multiple warnings from their own inspector general.

“Millions of people are seeking this tax credit who, we believe, are not entitled to it,” said the inspector general. “We have made recommendations to [IRS] as to how they could address this, and they have [still] not taken sufficient action in our view to solve the problem.”

Segall’s investigation revealed that claims for additional child tax credits by ITIN filers have skyrocketed during the past decade–from $161 million in 2001 to $4.2 billion in tax year 2010.

He also found that illegal immigrants filed 3.02 million tax returns in 2010, with 72% of those returns (2.18 million) claiming the additional child tax credit.

Segall’s attempts to speak with any of the 100,000 employees of the IRS were rebuffed; instead they emailed this statement…

“The law has been clear for over a decade that eligibility for these credits does not depend on work authorization status or the type of taxpayer identification number used. Any suggestion that the IRS shouldn’t be paying out these credits under current law to ITIN holders is simply incorrect. The IRS administers the law impartially and applies it as it is written,” the statement said.

George disagrees with that position and believes the IRS should be doing more to prevent undocumented workers from getting billions in US tax dollars.

“The IRS is not doing something as simple as requesting sufficient documentation from people seeking this credit,” he said. “Once the money goes out the door, it’s nearly impossible for the IRS to get it back.”

Segall says that the IRS says it can’t change the system unless it gets permission from Congress; and closing this loophole requires lawmakers to pass a new law specifically excluding illegal immigrants from claiming additional child tax credits.

However, the IRS “Ten Facts About Child Tax Credit,” does not concur, as illegal immigrants, by definition, fail the citizenship qualification test.

Let’s remember, this is an election year, Barack Obama is CEO, Harry Reid can block any legislation in the Senate, and Treasury Secretary Tim Geithner, who is George Russell’s boss, is still claiming that Obamacare will reduce healthcare costs.

Tomorrow in my follow on article, learn how Congressmen are reacting to this incredible tax fraud–and what they intend to do about it.

 

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U.S. government has given Afghan National Army more than $1 billion in ammo

collective illusions

Adam Kredo
Washington Free Beacon
June 10, 2013

The U.S. government has given the embattled Afghan National Army (ANA) more than $1 billion in taxpayer-funded ammunition, according to the Special Inspector General for Afghanistan Reconstruction’s (SIGAR) latest oversight report.

This is in addition to $288 million that has been spent on ammunition for the troubled Afghan National Police (ANP), which has been cited by SIGAR for its widespread corruption.

The United States has spent more than $54 billion in total to arm, train, and sustain Afghanistan’s security forces, which continue to underperform and suffer low enlistment rates, according to SIGAR’s quarterly progress reports.

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