The Institute for Justice is challenging the IRS' use of civil forfeiture, which allows the government to seize assets it suspects have been illegally obtained. It's often local police departments that seize people's cash, but the IRS has also used civil forfeiture law to take money directly from bank accounts, as The New York Times reported this weekend.

All you have to do to capture the IRS' attention is deposit less than $10,000 at a time in your account.

Banks that get deposits of more than $10,000 have to report those deposits to the federal government. A person who purposely tries to evade these reporting requirements is guilty of a crime known as "restructuring" (or "smurfing.") It's a crime to purposely duck these reporting requirements even if the money comes from a legal source.

If the IRS even suspects you're guilty of restructuring, it can take your cash. The problem is that people, especially small business owners, could have other reasons for making large deposits under $10,000.