Info

Date: 10/14/14
Desk: NAT
Slug: STRUCTURING
Assign Id: 30165306A

Dinner customers Judy Coleman, right, of Spencer, Iowa and Kathleen Dana, of Milford, Iowa prepare to pay their tab in cash at the Mrs. Lady's Mexican restaurant in Arnolds Park, Iowa, which has been owned and operated by Carole Hinders for the past 38 summers, on October 14, 2014.

Prosecutors are increasingly seizing the bank accounts and assets of small business owners who, because they run all-cash businesses, typically deposit less than $10,000 at a time in their bank accounts. Known as "structuring," the practice is illegal because it is frequently used by money launderers to avoid detection. But increasingly, federal prosecutors are seizing the accounts of people who are never charged with money laundering -- who, in fact, are never charged with any criminal wrongdoing, but who simply are in the habit of depositing less than $10,000 in cash at their bank. And this is allowed under the law.

Ms. Hinders, who accepts only cash and personal checks at her business, has had thousands seized under this practice. She says she sold the business last week.

Photo by Angela Jimenez for The New York Times
photographer contact 917-586-0916

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2010-10-14-IRS Structuring Small Businesses
Date: 10/14/14<br /> Desk: NAT<br /> Slug: STRUCTURING<br /> Assign Id: 30165306A<br /> <br /> Dinner customers Judy Coleman, right, of Spencer, Iowa and Kathleen Dana, of Milford, Iowa prepare to pay their tab in cash at the Mrs. Lady's Mexican restaurant in Arnolds Park, Iowa, which has been owned and operated by Carole Hinders for the past 38 summers, on October 14, 2014. <br /> <br /> Prosecutors are increasingly seizing the bank accounts and assets of small business owners who, because they run all-cash businesses, typically deposit less than $10,000 at a time in their bank accounts. Known as "structuring," the practice is illegal because it is frequently used by money launderers to avoid detection. But increasingly, federal prosecutors are seizing the accounts of people who are never charged with money laundering -- who, in fact, are never charged with any criminal wrongdoing, but who simply are in the habit of depositing less than $10,000 in cash at their bank. And this is allowed under the law.<br /> <br /> Ms. Hinders, who accepts only cash and personal checks at her business, has had thousands seized under this practice. She says she sold the business last week. <br /> <br /> Photo by Angela Jimenez for The New York Times <br /> photographer contact 917-586-0916