US lawmakers seek return of funds seized from Maryland dairy farm under disputed IRS authority

A bipartisan group of U.S. representatives wants the Treasury Department to return about $300,000 the IRS seized from a western Maryland dairy farm under a law aimed at curtailing money laundering.

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Nine members of the House Ways and Means Subcommittee on Oversight announced the request Wednesday on behalf of the South Mountain Creamery in Middletown.

Owners Randy and Karen Sowers agreed to forfeit the money in 2012 to settle federal accusations they violated banking laws by making cash deposits in amounts just under $10,000 to avoid paperwork. They say the money came from sales at farmers markets.

Since then, the IRS has changed its policy to avoid seizing funds from small business owners.

The Treasury Department says it has received the letter and will respond to the subcommittee.