IRS shuts down mom and pop dress shop, sells entire inventory within hours

By Alexandra Tendler IRS FOXBusiness

IRS shuts down a mom and pop business

The Internal Revenue Service reportedly shuts down a local dressmaker business and auctions off its inventory hours later.

Mii’s Bridal and Tuxedo, a Texas shop which was owned and operated by an elderly Thai couple, was raided and shut down by the IRS on Saturday after the couple allegedly evaded taxes.

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According to Dallas News, the IRS claimed the couple intentionally made cash deposits just shy of the $10,000 limit in 2005, 2008 and 2010. The couple disputes owing the government money, which the IRS says totaled more than $30,000 before the raid and auction.

IRS asset seizures have been controversial before, and according to Reason, the IRS has seized $17 million in assets over the past two years from small businesses.

The Thangsongcharoen couple was asked to provide a $10,000 check to the IRS within two hours of the auction of their wedding gowns, which were valued at more than $615,000 according to the suit.

The lawsuit also claims that the IRS lowered the value of the assets to $6,000 so they could justify selling them rather than storing them, which would only be worthwhile for assets valuing above $10,000. This meant each dress was auctioned off with a reduced value of $4.

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The auction sold all of Mii’s Bridal and Tuxedo’s asset in only four hours.

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The couple, who established their business in 1983, sued the federal government in March for more than “$1.8 million” for seizing their assets without convicting them of a federal crime. 

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