Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required

The Internal Revenue Service agents did not accuse Ms. Hinders of money laundering or cheating on her taxes -- in fact, she has not been charged with any crime. Instead, the money was seized solely because she had deposited less than $10,000 at a time, which they viewed as an attempt to avoid triggering a required government report.

"How can this happen?" Ms. Hinders said in a recent interview. "Who takes your money before they prove that you've done anything wrong with it?"

The federal government does.

Using a law designed to catch drug traffickers, racketeers and terrorists by tracking their cash, the government has gone after run-of-the-mill business owners and wage earners without so much as an allegation that they have committed serious crimes. The government can take the money without ever filing a criminal complaint, and the owners are left to prove they are innocent. Many give up.