IRS Finally Says Sorry for Seizing Small Businesses Bank Accounts

Small businesses face a tough battle in general, but when they have the IRS breathing down their necks it makes it that much more difficult to find success. Things are even more difficult when the IRS decides seize some of these business’s bank accounts. At least now the tax agency is apologizing for its actions. According to reports, after serious and consistent pressure from Congress, the IRS recently said sorry to several small business owners for taking control of their bank accounts. So why did the IRS takes these measures in the first place? Apparently these companies were guilty of structuring their deposits to barely avoid federal reporting requirements, even though they weren’t doing it with malicious intent. According to the law, any bank withdrawals and deposits greater than $10,000 must be reported to the IRS. It is also considered a felony to structure such transactions to avoid that law. In reality, these laws are actually in place to prevent drug dealers from transferring large sums of money to other countries. However, these seizures by the IRS reportedly cost the small companies who were affected tens of thousands of dollars to remedy. In apologizing the IRS also said that it would be changing its policy in order to protect small businesses from having their accounts seized when they obtain their money legally.

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