Treasury: most structuring money grabs are of otherwise lawful funds

The Treasury Inspector General for Tax Administration has released a new report on federal seizures of funds for the offense of unlawful bank “structuring” — the purposeful keeping of deposits or withdrawals below $10,000, a threshold that triggers reporting by the bank. The report confirms that in the great majority of cases, the funds being deposited or spent were not themselves associated with unlawful activity such as narcotics, tax evasion, or fraud. “The IG took a random sample of 278 IRS forfeiture actions in cases where structuring was the primary basis for seizure. The report found that in 91 percent of those cases, the individuals and business had obtained their money legally.” The seizure of legal source funds appears to have dropped sharply since the announcement of new policies by the IRS in 2014 and the U.S. Department of Justice in 2015. [Christopher Ingraham, Washington Post] Earlier on structuring here.


  • The always amusing LOWERING THE BAR blog also has a post on the matter here:


    • Disturbingly, these are two separate reports, one about the DEA and one about the IRS, of the government seizing people’s money for no good reason.

  • It has always deeply troubled me that Elliot Spitzer, who was recorded structuring, was never prosecuted. Of laws or people – you make the call.

  • So, are they going to give it back? Hob ho, ho. Just kidding. Some Friday humor to kick off the weekend.

  • Each person who had money taken and who had threats of criminal prosecution lodged against him should report the attorney to the state bar authorities.

    Nothing like a little sweet revenge.

  • But there is a good reason: government loves that sweet sweet cash…