Surprise, collectors can’t get the market full value of coins seized by IRS, according to a federal court.

During a home search, an IRS agent confiscated 364,000 presidential $1 coins that were rolled and boxed. After seizing the coins, the Service unpacked them and placed them back in circulation.

The taxpayers sued IRS for improper seizure and won, eventually they received $364,000 from the agency. However, the taxpayers claimed that the money they received didn’t fully compensate them for their damages because the value of the coins as collector items in their original rolls and boxes was much more than $364,000. The court denied them relief.

So beware a $500 or $1,000 bill are not worth $700 to $5,000 to the IRS; only face value…

Willis, D.C., Mo.

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