The Worst Part of the IRS Asset-Seizure Abuse: Expect It to Continue

There are many outrageous details in the New York Times’s revelations about a law that lets the IRS seize the assets of Americans whose bank-deposit patterns the agency finds suspicious even if a crime wasn’t committed. There is the fact that “Law enforcement agencies get to keep a share of whatever is forfeited.” There is the fact that “The government can take the money without ever filing a criminal complaint,” and the related issue that “the owners are left to prove they are innocent. Many give up.” There is the fact that in some cases, the banks (or their financial advisors) recommend that supposedly suspicious deposit pattern (less than $10,000 at a time, repeatedly). But the most disturbing part of a very disturbing story might just be this:

On Thursday, in response to questions from The New York Times, the I.R.S. announced that it would curtail the practice, focusing instead on cases where the money is believed to have been acquired illegally or seizure is deemed justified by “exceptional circumstances.”

Not nearly enough about the policy will change, nor will the law allowing it. And there won’t be consequences for those clearly abusing this authority. The IRS simply promises to use better discretion in deciding whose bank accounts they will–literally!–raid.