Federal policy limits seizure of small-business bank accounts

Small businesses suspected of structuring cash deposits will no longer have their assets seized by the federal government thanks to a new policy issued Tuesday by U.S. Attorney General Eric Holder.

Under the new policy, the assets of individuals and businesses suspected of structuring deposits won’t be seized until the party has been charged with a crime, or probable cause has been shown that the defendant is engaged in criminal activities.

In a news release issued by the Department of Justice, Holder said the intention of the policy is to make sure the DOJ is “allocating our resources to address the most serious offenses.”

The news follows testimonies given last month in front of a House of Representatives committee from three small-business owners who had their company bank accounts seized by the IRS, according to the St. Louis Business Journal. The IRS reportedly suspected the businesses of structuring cash deposits so as to avoid required reports of transactions exceeding the $10,000 amount.

The new policy enacts a 150-day period for prosecutors to file criminal indictments or civil complaints following a seizure, and also requires the return of seized funds if prosecutors decide the case lacks sufficient evidence or if charges are not filed by the deadline.

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