In case you had forgotten that the Internal Revenue Service is a despotic and evil entity that operates outside the rule of law and uses the brutal force of the state to crush its enemies — or anyone it feels like crushing.
Congress has required banks to report to federal officials deposits of $10,000 or more, because such deposits might make you a drug dealer, or a terrorist, or something. If the IRS thinks you are structuring your deposits to dodge such reporting requirements, it can crack down on you. And sometimes they'll take your money.
The Wall Street Journal has an editorial on this. It includes this story:
Mr. [Randy] Sowers had $62,936.04 seized from his bank account because of the pattern of his deposits, though the money was all legally earned. When Mr. Sowers challenged the seizure, Assistant U.S. Attorney and Chief of the Asset Forfeiture and Money Laundering Section Stefan Cassella tried to negotiate a settlement that would allow the government to keep some of the money.
Then Mr. Sowers told his story to a local newspaper, and negotiations went sour. In a May 12, 2012 email, a lawyer for Mr. Sowers asked Mr. Cassella why Mr. Sowers was not getting as good a deal as a similar case, noting that it was hard to explain to his client "why he is being treated differently." Mr. Cassella replied that the other forfeiture target "did not give an interview to the press."
The Institute for Justice is repping Sowers and other small businessmen who did nothing wrong besides make high-four-figure deposits.
Add this to the list of IRS abuses of power, including targeting Tea Party groups, and protecting big tax preparers from competition with illegal regulations.
P.S. But hahaha, some candidates for office want to abolish the IRS! How absurd!