IRS seizes $107k from small NC business owner, despite policy changes

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

FAIRMONT, N.C. — Lyndon McLellan has spent more than a decade running L&M Convenience Mart, a gas station, restaurant, and convenience store in rural Fairmont, North Carolina.

The New York Times reported that a year ago, without any warning, agents from the IRS seized his entire bank account, totaling more than $107,000.

If you deposit more than $10,000 in cash, your bank is required to file a form with the authorities reporting the transaction, according to Vox.

The law also makes it illegal to deposit cash in amounts under $10,000 to avoid triggering the reporting requirement.

McLellan is trying to recover his money. He has not been charged with a crime.

“It was like I was just slapped in the face with something. I didn’t know what was going on,” McLellan said, according to the paper. “You work for something for 13, 14 years, and they take it in 13, 14 minutes.”

Check out McLellan’s story in the video above, produced by the Institute for Justice, a libertarian public interest law firm that is representing McLellan.

Read the full story at NyTimes.com.