It would be nice to know the outcome of this as to what the IRS’s reasons were.
There always is.
When a federal agency decides to target a group of people because of their political beliefs (the tea party) and then does so with impunity, all of your rights are forfeit. Welcome to America, 2013.
If you make numerous cash deposits under $10,000.00 they decide that the reason you are doing it that way is to prevent the IRS from being notified that you are making cash deposits.
In other words they "divine" that you must be doing it with ill intent.
However if you are a busy small business which takes in a lot of cash you usually are doing these deposits so you don t get robbed. It is a sensible thing to do.
When I worked in a gas station one of the things you did when you closed out your register was hand the cash to the manager who took it promptly to the bank.
While we were occasionally robbed by the small time guys, who got a few hundred dollars, the big guys, who blew safes and got away with tens of thousands of dollars did not bother us. It was not worth their time.
They do it because they get to keep the seized money. Generally speaking, it will get divvied up between the prosecutor’s office and the reporting agency office and added to their operating budget. Individual agents may also get a bonus or it is used to bump their employment record and qualify them for higher ratings (= higher pay).
Somebody at the bank (a teller or manager) also reported them and received a “reward” for doing so.
This is happening to small businesses all over the US that receive significant cash payments that must be deposited frequently.
You can thank our dimwitted Congress and the War On Drugs for this unconstitutional institutionalized theft.