( CNN ) There are many reasons why the Internal Revenue Service is perhaps the least-loved agency in America -- a tax code so complex that it seems like you need an advanced degree to understand it , the dreaded audit process and revelations that certain groups have been targeted based on their political beliefs . And now , a growing awareness of instances where the IRS seized the money or property of law-abiding citizens without due process is adding to the agency 's menacing reputation . According to the Institute for Justice , a public interest law firm that investigates civil forfeiture practices , these seizures carried out by the IRS had increased from 114 in 2005 to 639 in 2012 . Sounds unbelievable , but believe it . Under a federal structuring statute , banks are required to report all cash deposits of more than $ 10,000 to the Financial Crimes Enforcement Network of the U.S. Treasury . To prevent money laundering , deposits purposely `` structured '' to evade this reporting are illegal . Enter the IRS . In Michigan , the IRS suspected a local grocer , Terry Dehko , of money laundering . Without filing charges , it seized his $ 35,000 bank account . Dehko had to prove in court that his daily bank deposits were for insurance reasons and to reduce robbery at his store -- not a criminal enterprise . Fortunately , the Dehkos won their case , and the IRS returned their funds . Iowa native Carole Hinders has made an honest living owning and operating a restaurant , Mrs. Lady 's , for 38 years . But in August 2013 , everything she saved -- roughly $ 33,000 -- was seized . The IRS targeted Hinders because her restaurant only accepted cash or checks , which made regular bank deposits necessary . After 19 months and extensive national media exposure , Hinders finally got her money back . In Maryland , the IRS used suspicions of structuring to seize the operating accounts of locally owned South Mountain Creamery and forced owners Randy and Karen Sowers to prove their innocence . Fortunately , the Sowers settled their case by showing their deposits were legitimate but only after expending extensive time and energy . Recent announcements by the Justice and Treasury departments that they will end most forms of equitable sharing -- the practice of federal law enforcement coordinating with local and state law enforcement for the purpose of pursuing civil asset forfeiture cases -- are a start , but this only affects a fraction of overall seizures . In addition to the IRS , the Department of Justice and U.S. attorney 's offices across the country have civil asset forfeiture authority . In fact , the U.S. attorney 's office for the Eastern District of New York , run by Attorney General nominee Loretta Lynch , has been an active seizure office . A disturbing example under her watch is the Bi-County Distributors case , where her prosecutors confiscated $ 446,651 from a small business run by Jeffrey , Richard and Mitch Hirsch . It took Lynch two years finally to drop the charges . In light of this case and her office 's extensive practice of civil forfeiture -- more than 120 times during her tenure -- it was disappointing to hear her defend the current system during Wednesday 's confirmation hearing before the Senate Judiciary Committee . Beyond these specific examples of abuse , Congress must take a hard look at the underlying federal civil asset forfeiture policies . Ultimately , the Equitable Sharing Program must be eliminated through legislative action as part of a larger package of reforms to the entire practice of civil asset forfeiture . For this reason , we have combined our previous efforts to introduce the Fifth Amendment Integrity Restoration Act , or FAIR Act , in both the House of Representatives and Senate . It would bolster protections for property and property owners by raising the level of proof necessary for the federal government to prove a civil asset forfeiture case -- requiring that the IRS and Department of Justice prove guilt , rather than the individual prove innocence . Moreover , the FAIR Act eliminates incentives for civil forfeiture by rerouting funds seized by the IRS to the general treasury rather than the unaccountable Asset Forfeiture Fund , which has little congressional oversight and has grown since its inception in 1986 to more than $ 2 billion in 2013 . This fund is the depository for all forfeiture dollars seized by the IRS , Justice Department and equitable sharing partners -- such as local police forces -- at the state and local level . Lastly , the FAIR Act inserts protections by mandating the IRS prove individuals have knowingly violated the structuring statute instead of simply inferring guilt from the deposits themselves . Making cash deposits does not automatically put you under suspicion of criminal activity . The FAIR Act will ensure that federal government agencies , like the IRS and Department of Justice , no longer profit from taking the property of U.S. citizens without due process , while maintaining the ability of courts to order the surrender of proceeds of crime . The FAIR Act intends to tilt the playing field back in favor of due process and property rights . We call on our colleagues in Congress to address this issue and join our efforts .
Rand Paul , Tim Walberg : IRS ' civil asset forfeiture laws can ensnare the innocent . These people must sue to recover their assets , Paul and Walberg argue . Authors have introduced legislation to compel government to detect fraud before asset seizures .